Noor S. Alramadan

Department of Finical & Banking sciences, University of Kerbala, Iraq

DOI : https://doi.org/10.47191/ijsshr/v5-i7-74

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ABSTRACT

This research is mainly taken into consideration the effects of the global financial crisis on the Gulf Cooperation Council (GCC) countries. The global financial crisis has been arisen in developing and developed countries that were not to be immune to its impact. The crisis is manifested in developing the trade and budget deficits, high inflation rates, currency devaluations and enhancing public debt. Conducting the present investigation is effective in providing information about how the financial crisis impact GCC countries in a negative manner. There has been different the different articles and opinion of authors on the area. Results of this research are that foreign currency large reserves attained through GCC countries in past years have assisted the expansionary policies to buy pumping liquidity for absorbing regressive crisis impact. The findings examined from the mention information that financial crisis impact on GCC countries’ economies is versatile and involve reduce international demand for the GCC exports, minimize oil prices of oil and impact on the public budget status of GCC countries and the investment and development programs. The enhanced inflation rates with a minimum in context to incentives for purpose of saving and economic growth. It has been concluded that the international financial crisis developed a negative impact on GCC countries’ economies indirectly or directly. These impacts were shown in the Gulf stock market and deterioration and reduced demand and cost of oil. Hence, expansionary policies have been applicated in the GCC countries, the precautionary process should be taken for the impact which will rise from applied policies in GCC countries.

KEYWORDS:

GCC, Financial Crisis, Oil price, Economic Growth, Islamic Banks.

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