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53 Per Cent Of Arab Investors Foresee The Global Economy Recovering From Crisis – Mubasher Survey
Published Oct 25, 2009
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A recent survey conducted by Mubasher Info on the current state of the global economy one year after the onset of the current financial downturn, has revealed that majority of Arab investors are optimistic that the global economy is now recuperating from the crisis. The survey, which covered respondents from across the Arab World, aimed at finding different views and opinions on whether or not the crisis has ended and if we are now heading towards recovery. According to the results of the survey, 53.1 per cent of Arab investors are confident that the global economy is now in a recovery stage; 27.8 per cent believe that the crisis is not yet over and 18.9 per cent say that the global economy has overcome the crisis and is now in the initial stages of recovery.
A total of 5,212 investors from nine Arab Markets participated in the survey, which was conducted online through the Mubasher Info portal (www.mubasher.info).
An analysis of the survey in Egypt shows that 56.9 per cent of the respondents believe that we are now recovering from the downturn, while 24.9 per cent say that the crisis is far from over and 18.3 per cent saying that the crisis has ended and businesses are now trying to pick up in terms of recovery.
The Kingdom of Saudi Arabia (KSA), the largest financial market in the region, has showed a different view of the economic situation. Results from the area show that 41 per cent believe that the global economy is still in recovery, 36.9 per cent say that we are still in the middle of the crisis while 22.1 per cent believe that the worst has ended and that the global market is now moving ahead all over again.
In the UAE, the survey covered respondents from Dubai and Abu Dhabi. Results show that 46.5 per cent say that we are in a recovery phase, 31.4 per cent noting that the crisis has not ended and 21.9 per cent believing that the crisis is over.
Kuwait respondents have showed that 56.5 per cent do not believe that the crisis has ended, while 30.4 per cent responding that the global economy is now recovering.
On the other hand, experts and economists unanimously agree that we are still in the recovery phase. However, different economies show various degrees of vulnerability, brought about by the result of the economic crisis from one country to another—developed countries suffering more than countries that are still in its developing stage. Moreover, experts explained that the injection of liquidity through government programs and incentives have resulted in positive results and complements what was clearly manifested in the global market.
Hamdy Abdel Azim, Professor of Economics and former President of Al-Sadat Academy for Administrative Sciences, told Mubasher Info that the global economy is still in a recovery phase, indicating that we have yet to overcome the crisis. Despite this, he pointed out that we are showing improvement, albeit slow, through stimulus packages that have been introduced in an attempt to decrease unemployment rates and save stock markets all over the world. Abdel Aziz likened these techniques, plans and regulatory actions to “analgesics,” which did not benefit the economy as expected.
Hisham Tawfik, Chairman of Al Arabia Online, shared a different opinion on the matter, pointing out that despite the crisis being far from over, the global financial market is recovering faster than expected and is predicted to show an upward trend in the next few months.
“The decline in oil prices has strongly affected a number of economies in the world, particularly GCC countries who mainly rely on oil resources for its budget. Although the decline has helped the industrial sector to rebound, it may hinder further recovery,” Tawfik said.
Tawfik stressed on reinforcing the link between global economies and developed economies led by countries like the US, adding that a developed country like the US will play a vital role in leading the global economy towards a recovery phase in the coming future.
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Posted by
VMD - [Virtual Marketing Department]
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