Loading...
Symbols:
Authors:

Oil-Rich SWF Countries Also Feeling Some Pain

by: David Enke October 10, 2008    

David Enke

About this author:
Become a Contributor Submit an Article
  • Font Size:
  • Print

A combination of falling crude oil prices and falling US and world equity markets has caused stocks over the last four days to lose almost a quarter of their value in Dubai and 17 percent in Saudi Arabian markets, just less than a week after there was an expectation that these markets were immune from the financial problems in the West (see Washington Post article).

Some stress that the problems in the Gulf are more structural, with the lack of transparency and information resulting in the markets being impacted more by unsubstantiated rumors and panic selling. Nonetheless, the level of exposure is still believed to be significant.

Losses from sovereign wealth fund investing in the US and elsewhere are yet to be disclosed, but are expected to be significant, causing many funds and their capital to sit on the sidelines as the credit crisis continues to unfold.

Related Articles

This article has 1 comment:

  •  
    Oct 11 04:46 PM
    Probably the drop in oil and expectation that oil will continue to do so in the future. Doubtful if Saudi Arabia can organize OPEC and really get them to cut production, and even if they do, then they are just selling less.

    An interesting aside though, is that maybe we are all investing in the wrong areas.... Sure, the world as we know it is tanking, but look at these markets (Courtesy of the heatmap at Emergeinvest.com, which is a nice site for emerging market commentary... ). These are the years returns for smaller markets... Kinda makes you sick, doesn't it. Trinidad and Tobago did better than the USA? Luxembourg? Good God!:

    Ghana GSE Index +89.57%
    Tanzania +58.62%
    Malawi All Share Index +35.86%
    Tunisia Index +25.15%
    Costa Rica BNV Share Index +14.29%
    Trinidad & Tobago +12.54%
    Zambia Lusaka All Share Index +8.32%
    Palestine AL-QUDS Index +6.31%
    Bangladesh All Shares Price Index+4.42%
    Luxembourg General Price Index +1.67%
    Reply
More by David Enke
Investment Resources
Money Managment
Research
Seeking Alpha provides these ads as a service to its leading contributors
Articles on related themes
Middle East & Africa
Consumer Credit
Insurance
Investment Banks