Excerpts: Saudi and Gulf investors beset by liquidity problems.Abu
Dhabi/China $6 billion to construct housing in China.October 04, 2008
QUOTE:: ” ‘The Saudi stock market lost 30% of its value in 2008 while Dow
Jones lost only 22% ‘ ”
FULL TEXT:JEDDAH: Many Saudi and Gulf investors suffered heavy losses after
some American and Gulf banks used their funds to buy risky mortgage bonds
just before the subprime mortgage crisis erupted in the US.
“At least 35 Saudi investors are facing semi-bankruptcy as a result of
purchasing US mortgage bonds,” Al-Riyadh Arabic daily said quoting business
However, the paper said it was not yet clear how much would be the total
losses caused by the US economic crisis to Gulf banks. It also said that
some Gulf banks had played the role of intermediaries for US banks and
companies to sell high-risk mortgage bonds to Gulf investors in lieu of
attractive commissions.
Saudi Arabian Monetary Agency (SAMA), the Kingdom’s central bank, is silent
about the losses suffered by commercial banks in the country, the paper

continue reading at…………….http://www.imra.org.il/story.php3?id=40936


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