1. STRATEGIC PLANNING AMONG MIDDLE-EAST
FINANCIAL INSTITUTIONS IN FACING AND
OVERCOMING THE IMPACT OF GLOBAL
FINANCIAL CRISIS.
by,
Group Name:
MAHESH
BHUPATHI
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3. 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.
4. INTRODUCTION
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.
5. 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.
6. 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.
8. 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):.
9. 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):
10. 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
11. 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.
13. 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.
