Cover Departmental Papers
Buy Book in Print
Impact of the Global Financial Crisis on the Gulf Cooperation Council Countries and Challenges Ahead.
Author:
Ms. May Y Khamis
Search for other papers by Ms. May Y Khamis in
Current site
Google Scholar Close
,
Mr. Abdelhak S Senhadji
Search for other papers by Mr. Abdelhak S Senhadji in
Current site
Google Scholar Close
,
Mr. Gabriel Sensenbrenner
Search for other papers by Mr. Gabriel Sensenbrenner in
Current site
Google Scholar Close
,
Mr. Francis Y Kumah
Search for other papers by Mr. Francis Y Kumah in
Current site
Google Scholar Close
,
Maher Hasan
Search for other papers by Maher Hasan in
Current site
Google Scholar Close
, and
Mr. Ananthakrishnan Prasad
Search for other papers by Mr. Ananthakrishnan Prasad in
Current site
Google Scholar Close
Series:
Departmental Papers
Volume/Issue:
Volume 2010: Issue 001
Language:
English
Publication Date:
12 Mar 2010
DOI:
https://doi.org/10.5089/9781589069718.087
ISBN:
9781589069718
ISSN:
2616-5333
Pages:
77
Keywords:
DPPP; DP; banking sector; GCC country; credit bureau; GCC bank; investment funds; economic activity; U.S. dollar; Commercial banks; Credit; Islamic banking; Stock markets; Liquidity; Global; Middle East; North Africa; South Asia
Legal-disclaimer:
The Departmental Paper Series presents research by IMF staff on issues of broad regional or cross-country interest. The views expressed in this paper are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (4.8 MB) Download Epub
This paper focuses on impact of the global financial crisis on the Gulf Cooperation Council (GCC) Countries and challenges ahead. The oil price boom led to large fiscal and external balance surpluses in the GCC countries. However, it also generated domestic imbalances that began to unravel with the onset of the global credit squeeze. As the global deleveraging process took hold, and oil prices and production fell, the GCC’s external and fiscal surpluses declined markedly, stock and real estate markets plunged, credit default swap spreads on sovereign debt widened, and external funding for the financial and corporate sectors tightened. In order to offset the shocks brought on by the crisis, governments—buttressed by strong international reserve positions—maintained high levels of spending and introduced exceptional financial measures, including capital and liquidity injections. The immediate priority is to complete the clean-up of bank balance sheets and the restructuring of the nonbanking sector in some countries. Clear communication by the authorities would help implementation, ease investor uncertainty, and reduce speculation and market volatility.
  • Collapse
  • Expand
Cover Departmental Papers
Departmental Papers
ISSN:
2616-5333
Publisher:
International Monetary Fund