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by,Group Name:

MAHESH BHUPATHI

STRATEGIC PLANNING AMONG MIDDLE-EAST FINANCIAL INSTITUTIONS IN FACING AND OVERCOMING THE IMPACT OF GLOBAL

FINANCIAL CRISIS.

OUTLINE Objective Introduction Literature Review Discuss of the findings Conclusion

This paper intends to study about the strategic planning among Middle-East financial institutions is facing and overcoming the impact of global financial crisis.

The first section of the study will analyze the impact of the global financial crisis towards Middle East financial institutions.

The second section of the study will present about the strategic planning used among the Middle East financial institutions.

The impact of global financial crisis are:

Reduces of oil prices and global liquidity shortages.

Pressures on bank funding and liquidity led to tight credit conditions.

Changes in the fund investment strategies

Repercussions for stock markets and the Arab financial system.

INTRODUCTION

Cont….

The lessons did Middle East countries learns from the global financial crisis:

Lack of regulation is as bad as over-regulation.

Insanity is defined as doing the same thing and expecting different results.

Country pay a big price not only for their wrong economic policies, but also for wrong foreign policies.

Define strategic planning

Organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.

The linkage between global financial crisis and Middle East institutions that used strategic planning to make critical decisions were better able to pursue growth opportunities during the crisis.

Middle east financial used long-term growth strategic planning on the recovery of the financial crisis.

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I. GCC oil exporters A negative terms-of-trade shock associated with the drop

in oil prices; A financial shock, which destabilized overextended

domestic banks and led to the bursting of a real estate bubble

GCC states are dealing with the consequences of the crisis in a number of strategic plans:

Implement expansionary fiscal policy (Winckler, 2010):

Steadily Increase Oil Production Capacity(Winckler, 2010):.

II. Developing Oil Exporting Countries

Developing oil exporting countries in the region are Algeria, Iran, Syria, and Yemen (Global Economic Prospects, June 2011).

Hence, due to the limited integration of their banking sectors into global financial markets, developing oil exporters felt the impact of the crisis mostly through the negative oil price shock(WORLD BANK MENA REGION – A REGIONAL ECONOMIC UPDATE, APRIL 2010)..

Strategic plans:- Steadily Increase Oil Production (Winckler, 2010):

III. Oil Importing Countries The oil-importing MENA countries were hurt mostly by

the secondary effects of the crisis on trade, remittances, and foreign direct investment (FDI)-Reinikka (2010).

Key non-oil sectors such as services and tourism remained relatively resilient, while the decline in oil and other commodity prices limited the deterioration of their external balances.

Stimulus packages in the Arab Republic of Egypt, Jordan, Morocco, and Tunisia also helped soften the deceleration in growth.

Strategic plans Diversification of policies

Implementation of expansionary fiscal policy Strategy was successful and effective I.) The portions of gross domestic product revenue is increased the growth of GDP will increase.II.)Create new job opportunities for the national workforce.

In GCC countries they reduce the oil production at first and then gradually increase the production later when the crisis muted.

Cont....

Oil-importing countries Apply diversification policies Working together recovery.

Different Middle East countries were impacted differently by the crisis.

GCC countries intervened early to support their banking systems and stock markets.

The World Bank doing help to the global financial crisis impacted countries.

Generally, if this global financial crisis occurs in future, we have to know what kind of the precaution steps should be taken to avoid this crisis.

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THANKS

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