Document Type

Journal article

Source Publication

Contemporary Arab Affairs

Publication Date

1-1-2010

Volume

3

Issue

1

First Page

38

Last Page

52

Keywords

Arab World, financial crisis, Gulf Cooperation Council (GCC), sovereign wealth funds, the United Arab Emirates (UAE)

Abstract

When the problems in the United States housing sector mushroomed into a global financial crisis by September 2008, it was assumed that Arab countries would remain immune: the oil‐rich Gulf Cooperation Council (GCC) countries because of their massive financial reserves, and the resource‐poor countries because of their limited linkages to the global economic system – in particular, the global financial markets. However, this assumption has proven to be false. The US subprime mortgage collapse not only pushed the advanced economies into recession, but also it shattered global economic confidence, resulting in a massive financial contagion around the world. What explains the Arab World's vulnerability to the crisis? How has the crisis impacted both the resource rich and the resource poor? How have Arab countries responded to the crisis, and what must they do to insulate their economies better from the vagaries of global financial markets? This paper addresses these questions.

DOI

10.1080/17550910903541835

Print ISSN

17550912

E-ISSN

17550920

Publisher Statement

Copyright © 2010 Routledge

Access to external full text or publisher's version may require subscription.

Full-text Version

Accepted Author Manuscript

Recommended Citation

Sharma, S. D. (2010). The Arab world amidst the global financial crisis of 2008–2009. Contemporary Arab Affairs, 3(1), 38-52. doi: 10.1080/17550910903541835