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| Volume XV, Spring 2008, Number 1 |
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EXCERPT
Gulf Cooperation Council Stock Markets Since September 11
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| Sam R. Hakim |
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Dr. Hakim is an adjunct professor of finance at Pepperdine University's Graziadio School of Business and Management.
Despite many economic and
social features that bind their
economies, the Middle
Eastern countries are remarkably diverse. Their economic heterogeneity is a reflection of unequal natural-resource endowments, with a few economies in the region subject to enormous swings in growth resulting from commodity price shocks. In some countries, regional conflicts and instability pose significant challenges and exert tremendous pressure on the population and its welfare. In others, differing economic trends reflect the very divergent paths countries in the region have taken towards economic liberalization and integration. Other signs of disparity are evident in economic freedom, political rights and civil liberties.
During the past five years, the rapid rise in oil prices has fundamentally changed the economics of countries in the Middle East. At the end of June 2007, oil prices continued to climb due to international tensions over Iran's nuclear program, instability in Iraq, and other geopolitical concerns amid a tight market with limited excess oil-production capacity. In December 2007, the price for crude oil broke through the psychological barrier of $100 per barrel, marking the third consecutive year that the average price for oil exceeded its previous all-time high.
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