As a result, those countries which rely on oil as a significant component of the GDP will only experience a slight slump in their revenues unlike the rest of the globe. According to Rivlin (2009), Arab economies experienced were caught in the middle of rising revenues from petroleum products including oil, and natural gas,
while imports in the form of food and other raw materials experienced a sharp increasing eroding a significant part of the benefits from oil. Dependence on oil is bound to cushion the region from any changes in the global economic outlook, making it possible for the economy to survive the most destructive situation. Prior to the financial crisis and in the initial periods of the crisis, the world experienced a rise in the food and fuel prices (The World Bank, 8). Once the recession hit, this rise in prices was one of the most significant causes of the social and economic disarray in the economies, especially at the back drop of the collapsing of the financial sector. Of utmost importance is the fact that globalization was the major source of trouble for domestic banking institutions across the globe, most of which had developed close ties with the global counterparts. The presence of capital in their balance sheet, most of which is sourced from the global investor in the form of foreign capital contributed to the deepening of the crisis.
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