Sunday, October 26, 2008
Global financial crisis extends to the Gulf region – Kuwait to guarantee bank deposits
Shares in the oil-rich Gulf region have fallen sharply as investors worried about the impact of the global economic downturn on the region. Kuwait said legislation to guarantee deposits held in its banks would be introduced, prompting concerns about the state of financial institutions. It followed Kuwait's second largest lender, Gulf Bank, saying it had made losses on derivatives trading. And Saudi Arabia said it was making cash available to low-income citizens. The plan to put 10bn riyals ($2.7bn; £1.7bn) into the Saudi Credit Bank for interest-free loans to help people tackle financial difficulties intensified fears that the global financial crisis was extending to the Gulf region.