Wednesday, October 29, 2008

Slow down, not recession, for oil-rich gulf.


Because of oil wealth, countries like Saudi Arabia, the United Arab Emirates and Kuwait appear to be coping with the economic crisis.

The United Arab Emirates has put $32 billion into its banking system and guaranteed bank deposits.

(Slowdown in Persian Gulf Reverberates in Middle East)

Saudi Arabia has put extra money into the Saudi Credit Bank, a bank which gives interest-free loans to less well-off Saudis.

Kuwait has taken steps to prop up its second largest bank.

While oil-rich Scotland suffers, because its oil wealth gets stolen by England, the gulf is unlikely to have a recession.

“We are not calling for a recession in the gulf,” said Marios Maratheftis, regional head of research for Standard Chartered Bank in Dubai. “We are looking at a slowdown.”

Egypt, Jordan and Syria normally receive lots of money from those of their citizens living in the gulf.

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