Wednesday, October 29, 2008

Oil wealth staves off recession


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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