The Effects of the 2008 Financial Crisis on the Investment in the Gulf Essay

The Effects of the 2008 Financial Crisis on the Investment in the Gulf Area – Essay Example

The 2008 financial crisis brought in its wake the reduced inflow of foreign direct investment (FDI) with a measure reduction observed in 2009. As per the Kuwait newspaper, Al-Qabas, as many as 675 real estate projects were cancelled in Gulf countries with almost 75 percent of them belonged to UAE – a large portion being in Dubai. Dubai’s real estate market has been highly buoyant since last couple of years and almost 25 percent of its GDP comes through its real estate industry. It is imperative that property market in Dubai has seen its worst fall during the crisis period. In the aftermath of 2008 financial crisis, Oil prices plummeted significantly to reach $40 per barrel by December 2008. The countries under discussion heavily depend upon the income from exports of crude oil and their 50% of GDP, baring UAE, is generated from the oil economy. It is not surprising that fall in oil prices affected significantly the business of oil exporting countries such as Kuwait, Qatar, Oman, Bahrain, UAE causing impact on investment scenarios in these countries.
Impact of 2008 Financial Crisis on Investments in Qatar
It is pertinent to note that the impact of financial crisis on Qatar has not been substantial. During the 2008 financial crisis, the establishment continued to protect the local banking sector through direct investments in them. Ongoing financial Crisis did affect the GDP and investments in 2009 but it made a smart recovery in 2010 due to upward movement in oil prices. Qatar made substantial investments in its gas sector in 2011. The policy makers focused on country’s non-associated natural gas reserves and began developing them that provided huge boost to foreign investment in non-energy sectors too. Oil and gas still accounts for over 50% of the nation’s GDP generating 85% of export earnings. It will be most appropriate to note that Qatar’s per capita income is highest in the world and the country boasts of one of the lowest unemployment rate. GDP real growth rates in Qatar have been 16.7%, 13% and 6.6% during the years 2010, 2011 and 2012 respectively that amply proves that the impact of 2008 financial crisis on Qatar has not been significant. As per the 2012 estimate, the gross fixed investment in the Qatar economy has been to the tune of 30.6% of GDP that is certainly laudable in the ongoing financial crisis. Direct foreign investment in Qatar has been registered at $31.84 billion and $32.17 billion during the years 2011 and 2012 respectively and Qatari Rials (QAR) exchange at a fairly constant rate of 3.64 per US dollar all from 2008 through 2012 (Qatar Economy Profile, 2013). Doha Subsea Tunnel with an investment outlay of US $1 billion, Doha Metro with total investment of US $2 billion, and New Doha Port with the projected investment outlay of USD 6.84 billion are some of the projects conceptualized after 2008 financial crisis are in the fast mode of implementation and likely to be completed in the next 2-3 years. The impact of 2008 financial crisis is nonexistent in Qatar and that can also be gauged from the fact that the foreign direct investment (FDI) in Qatar in 2009 was USD 8.7 billion; it was higher by USD 2 billion when compared with the investment figure of 2008. It is important to note that between 1990 and 2000, the average FDI investment in Qatar has been only USD 169 million (Rise with Qatar, 2012). Impact of 2008 Financial Crisis in Investments in Kuwait Kuwait is also an oil economy and petroleum products contribute almost half of its GDP and earn almost 95% of its export revenues.

Chapter 9 of the Great Gatsby Essay

Chapter 9, the last chapter of the novel, is used by Fitzgerald to create a sense of finality for the reader, suggesting ‘the party was over’. This chapter allows him to make his final comment on the unfulfilling nature of the American Dream, and the nature of the people that lived in the ‘Roaring Twenties’. The chapter is made for the obvious purpose of being the conclusion to the story. Rather than leave the ending ambiguous as many authors do, Fitzgerald wraps up the narrative decisively. This sense of finality of the book allows the reader to come to final conclusions and judgements of what they have seen. An open ended book can allow readers to come up with their own endings, but a book with a definitive ending allows readers to see what happened and then decide what it means. Fitzgerald allows the reader to form their own opinions on the events that definitely happened in the story, giving a greater sense of meaning and attachment to the story.
Nick narrates the chapter from two years later, looking back at the final days he spent in New York. Throughout the chapter Nick shows his disgust and contempt for the East of the U.S., clearly preferring ‘[his] Middle West’. Fitzgerald does this to make us, as readers, antagonise the East society as the main cause of the tragic events of the novel. He does this by showing Nick, the one involved in most if not all the events of the novel, completely appalled at the actions of people that have made their lives in the East. This is particularly shown when Nick initially refuses to shake Tom Buchanan’s hand. He has correctly deduced that Tom was the one who told Wilson that Gatsby’s car was the one that ran Myrtle over, and out of his ‘provincial squeamishness’ he did not shake hands.
He does ultimately shake hands, but only out of pity and as a sign of farewell so that he does not have to see Tom again. We are meant to feel Nick’s relief of not having to see this clear representation of all that was wrong with ‘old money’ and the novel’s portrayal of the East; that it was essentially ‘careless people, [who] smashed up things and creatures and then retreated back into their money or their vast carelessness… and let other people clean up the mess they had made’. At first, Gatsby seems to represent the success story of the American Dream. He creates his own fortune and earns great wealth and material possessions; but, in the end, his dream fails anyway. At the conclusion of the novel, Gatsby does not get what he wishes. ‘his dream must have seemed so close that he could hardly fail to grasp it.
He did not know that it was already behind him,’ Gatsby’s death without the total commitment from Daisy that he always sought after is a tragic display of the reality of the American Dream: that it has been corrupted from the ‘pursuit of happiness’ to the ‘pursuit of wealth’. Fitzgerald uses the distortion of the readers’ perception of the American Dream so that we pity the unfortunate characters of the novel: Gatsby, Jordan, Daisy, Tom; who despite having money, do not seem to have true deep happiness. Overall, Fitzgerald uses the closing chapter of the novel for exactly its intended purpose: to finish the novel. We see the end of the story of Gatsby and the effect he had on people and reflect on what it truly meant.

Skip to toolbar