While the global economic uncertainty is increasingly trimming down investors’ confidence and consequently, leading to panic selling and the pulling out of millions of dollars worth of foreign investments, the stock market is bearing harsh consequences with share prices suffering precipitous fall. This drop in share value is also due to the sharp fall in oil prices, which has made investors increasingly concerned about the future of Gulf economies. All seven GCC markets fell in the past three months and $150 billion of their market capitalization has been lost since the end of 2007. Since the beginning of the crisis, banks and mortgage houses have become very conscientious about lending and even though most GCC governments like Bahrain, UAE and Saudi Arabia are injecting liquidity into the banking sector to keep work going on major projects and to ease liquidity pressure, the real estate market has not shown any improvements
