Recession seems to have reached majority of regions but this part of the world (Gulf) looks relatively unaffected till now ... What do you guys think, will this economic crisis affect the economies like UAE, etc or they will remain indifferent?
Yes they will feel the pinch soon. This is kind of world economy downturn,so you don't expect anyone of the country not feel the pinch. Their biggest exporter is US so now US is economy slow down,it will affect their country export thus affecting their GDP growth
They are already feeling the effects of the credit freeze-up, they are having some problems with financing construction projects. But more importantly with oil prices in the mid $40's they will be feeling it more strongly the longer prices remain so low. From what I have heard they need oil prices to be somewhere in the $70-80 price range for their economies to be stable in terms of cash flows. Tom