Effects of the 2008 financial crisis on the investment Essay

Effects of the 2008 financial crisis on the investment - Essay ExampleThe financial crisis of 2008 was traced to impose non-negligible impacts on the spunk East, particularly Qatar, holding the biggest position in the oil and gun for hire resources. The fall in the oil and gas price, have further, strongly impacted the Middle East do adverse affects the region of Qatar. The decrease in the oil and gas price has made larger exporters to observe the bad debt scenario and has also challenged the countries to pay off their international debts with greater transparency (Council on Foreign Relations, 2009). This non only slowed down the economic growth prospects, affecting the price on the commodity (Setser, 2008).Additionally, it made Middle East countries like Qatar suffer with limited financial capacity to fund projects on continuation, resulting in their misadventure to suffice developmental needs in time and as planned. Moreover, as the country withdrew from importing grand am ount of oil and gas from the US to rejuvenate its financial position, it greatly impacted the monetary insurance of the United States Federal Reserve, causing political and economic disruptions in the international trade practices for both the nations (Setser, 2008). Consequently, the free wealth and central bank were con positioningred for greater use in helping the firms and local banks aimed at stabilize the fiscal position of the economy by refinancing their growing debts. Since the financial crisis, Qatar has used sovereign funds at a greater proportion to recapitalize their banking system and other smaller countries within the Middle East region, transmutation its prime focus from attracting foreign funds. To maintain domestic investment at a positive side and backstop the banks from incurring greater debts in the international market, many Gulf governments needed to draw on their accessible assets (Isfahani, 2008).A direct effect of the financial crisis was observed on the financial institution and the truly estate of Qatar, as these