TY - JOUR T1 - Redrawing Global Financial Geography JF - Trading SP - 88 LP - 101 VL - 2009 IS - 1 AU - Nasser Saidi AU - Fabio Scacciavillani Y1 - 2009/12/21 UR - http://guides.pm-research.com/content/2009/1/88.abstract N2 - This article analyzes the impact of the financial crisis triggered by the sub-prime mortgage defaults on the emerging market economies (EME), with special reference to the MENA and GCC regions. Various factors are contributing to the limited impact of the crisis in the GCC-strong macroeconomic fundamentals, the low prevalence of complex structured products, the growing importance of Islamic banking and finance, and regulatory and prudential rules discouraging exposure to sub-investment grade investments, to name a few. The reported direct losses have been minimal, though there have been some notable contagion effects, especially on stock markets, Sukuk issuances, delays and/or postponements in bond issuances and obviously on yields in secondary markets.However, steady capital inflows and infrastructure projects in the emerging markets have developed their endogenous growth capacity, thereby increasing resilience. When the dust settles it is expected that the capital to re-ignite the engines of growth will come primarily from emerging markets, and the GCC in particular. With the traditional financial centers enmeshed in the midst of a fundamental industry, legal and regulatory restructuring, what has been so far the “periphery” of the global financial system will play a more fundamental role. New links and nodes will be created among emerging markets, while the increasing demand for sophisticated financial services will boost the attractiveness of working outside advanced economies for highly skilled professionals. ER -