Introduction
The research paper will look at the Souk Al-Manakh crisis in Kuwait which affected the economy of Kuwait and pushed the Gulf Region into recession. The topic of discussion is important as it has led to significant changes in the economic situation in the Gulf Region. The crisis affected countries whose companies traded in the informal Souk Al-Manakh stock exchange. One of the largely affected countries was Bahrain that worked at ensuring that it maintains its financial reputation to the rest of the world (Colombo #1).
The purpose of the study is to determine the steps taken by the government of Kuwait to resolve the crisis, whether the people are involved and the views on the steps by other governments.
Research methodology and research questions
The research is based on a historic financial crisis that shaped the economy of the Gulf Region. The research is thus important in showing the mistakes that were made by allowing an informal securities exchange market in Kuwait. The study is also important in showing how the government has worked to resolve the crisis and how the people of Kuwait are involved in it. The Souk Al-Manakh study shows how far investors can move to speculate on the securities market.
The study will be looking to find out;
The resolutions that the Kuwait government had taken to ensure that the crisis does not affect the economy of the country at the time when it suffered a significant drop in oil prices
The reaction by the government of Bahrain towards the Souk Al-Manakh crisis since a large percentage of the companies affected were based in Bahrain
The study will also be looking at the effects that the whole crisis had in the entire gulf region.
The research will be looking at the need for stringent capital markets regulations which Kuwait did not have at the time of the crisis.
The research questions will be important in analyzing the investigation as the questions will look deeply into the connection with the thesis of the study.
Review of Sources
The research will use both primary and secondary sources of information. The primary source that will be used is an interview review by the New York Times on one of the persons whose company was affected directly by the crisis. The primary source which is the Al-Deera Holding website provides firsthand information with regards to the crisis that affected the investors as the respondent; Mr. Abdulwahab Ahmad Al-Nakib is conversant with the events that occurred during the crisis that led to recession in the Gulf Region. The primary source consequently provides important information from the beginning of the crisis to the end and the present status (Al-Deera Holding 2016). The source will be important in showing the steps taken by the government of Kuwait to resolve the crisis and the view on the steps by the other governments which is the main thesis of the research. The secondary sources include book by Lambert Surhone, “Souk Al-Manakh Stock Market Crash,” the article “Kuwait’s Souk Al-Manakh Stock Bubble” written by Jesse Colombo, and the report by Asa Fitch titled “The Souk Al-Manakh: Kuwait’s first big Bubble” by The National paper of the United Arab Emirates. The secondary sources provide an exclusive report of the events that occurred and led to the crisis in Kuwait and the steps taken to resolve it thus proving to be of importance to the topic of study. The information obtained by the sources is firsthand through interviews, speeches, government publications, and audio and video recordings.
Work Cited;
Al-Deera Holding". Aldeeraholding.com. N.p., 2016. Web. 21 Mar. 2016.
Colombo, Jesse. "Kuwait’s Souk Al-Manakh Stock Bubble." 12th May (2006)"Kuwait's Souk Al-Manakh Stock Bubble." Thebubblebubble.com. N.p., 2016. Web. 21 Mar. 2016.
