Читать книгу Corporate Governance - Quantity Versus Quality - Middle Eastern Perspective - Saleh Hussain - Страница 13

The impact of the current economic crisis on other sectors of any economy will not be limited to banking and energy. In fact, we have seen little impact on other sectors so far, but what is to come might be frightening. The two sectors that we have started seeing an impact are real estate and automobile manufacturing.

In real estate we've seen only in the beginning of major projects being halted, canceled or scaled down. In 2009 and 2010 we will witness major changes in this sector, including prices decreasing by as much as 50%, if not more. Rental rates on existing and new units of property will also suffer a major correction.

The automobile industry has already entered a difficult phase. The United States has pledged close to US$20 Billion to help major auto makers. Certainly Japan, UK, Germany and other car-making countries will be subjected to the same difficulties.

The degree of such impact is still to be seen in other sectors. However, building materials including steel, cement, blocks and others have already shown signs of receiving their share of it. The downstream retail sector will soon show signs of decline as well.