ISSN: 1817-5880

Volume 32, Issue 29

Volume 32, Issue 29, Summer 2016, Page 1-216


Use the Theory of Financial Options and Portfolio in reduction Investments Risks : A Case Study on Iraq Stock Exchange

Hussein Jawad Kadhim; Hussein Karim Saidi

Gulf Economist, Volume 32, Issue 29, Pages 1-25

Because of increasing risks that facing the investors in financial markets the present study endeavoured to provide a knowledge and practical framework about the ability of contracts options in reducing risks of stocks prices for the selected sectors listed on the Iraq Stock Exchange by using the most important financial theories, namely portfolio theory and the theory of financial options, to show the role of the policy of diversification in reducing irregular risks, as well as the prominent role given by the covered call option strategies to benefit from expectations of the current and future stock prices , that would contribute to the hedging of risks.
The present study has reached a set of conclusions, including that the reduction of irregular risk depends on aimed diversification, which focused on the importance of correlation coefficients of returns, while the application of covered option strategy based on binomial model on efficient portfolio led to the advantage of the value of premium paid by the call option holders , that prices as long as witnessed a large fluctuations during the period under study, which proves the validity of our hypotheses through the study on the possibility of obtaining the best trade-off between return and risk when diversifying portfolios ,and that their possibility of reducing efficient portfolio risks by using the strategy of sale covered call option.

POWER OF THE GULF COOPERATION COUNCIL STATES FOR PREVENTION FROM THE WORLD FINANCIAL CRISIS THE IMMOVABLE MORTAGE CRISIS AS A MODEL

Sabbagh Rafaca; AL Razak Mohammed; Mahdaoy hand

Gulf Economist, Volume 32, Issue 29, Pages 26-52

The phenomena of repetitive financial crisis in the developing countries during the 90’s has involved an event of worry and concerns, what leads economies to give importance to premature warning systems to the effects of avoiding crisis or alleviate the extent .
This paper is aiming to analyse the mechanism of management of the subprime crisis in the Gulf countries. For this purpose, the study assumed that the unification of mechanisms must be pursued and existed for the following reasons.
• The economic integration between these countries.
• The homogeneity and the reconciliation of the economic and social infrastructures.
The study found a divergence in the management of mechanisms of crisis from a country to another, each country has managed its crisis according to the nature of its economy based on its goals.
In conclusion, we can say that the economic integration of these countries did not lead them to unify their policies to mitigate the impact of crisis.

Impact of the Global Financial Crisis on the Economies of the Gulf Cooperation Council (GCC)

Amjed Sabah Abdulali

Gulf Economist, Volume 32, Issue 29, Pages 53-84

Since 2007, the effect of global financial crisis has varied in different degrees on the economies of Gulf Cooperation Council (GCC), this is due to their linkage with the global economy. GCC countries are characterized in a high economic openness to the market economy. However, the crisis began influencing the financial sector, especially the stock markets and banking sector, the banking sector in GCC countries has faced a liquidity crisis and causes inability to grant loans for various development projects and reluctance many banks from granting loans or imposing high interest rates. As the sovereign funds, the Gulf cooperation Council has been subjected to significant losses in the value of real estate assets that were investing in the advanced industrial countries' markets, as well as, the effects of the crisis on the oil sector. Furthermore, the fluctuated prices in the international oil market and then the degree of economic growth, and direct and indirect investments shape the importance of this research due to the size of the financial losses faced by the economies of the Gulf Cooperation Council (GCC). Due to the financial crisis and economic openness of GCC economies, the author is motivated to set an assumption which assumes that the global financial crisis will be affected negatively on GCC countries. However, the study set several recommendations that could reduce the negative impact, such as applying teachings of the Islamic economy in light of the jurisprudence of the Islamic banking and financial markets, and take a non-cash actions that encourage consumption and private investment and the development of new and stringent conditions in granting of high values of loans and demand real guarantees, and activating the role of censorship Securities that have remained outside government control markets.

Investment in insurance companies and its impact on the economic development in Iraq: Afield study in national and Iraqi insurance companies, (2011-2014)

Mayada Rashed Kamil

Gulf Economist, Volume 32, Issue 29, Pages 85-135

This research aims to identify the importance of investing in insurance companies, as one of the financial institutions that exerted an important role in economic and social activity, In terms of the collection and saved of premiums and invested in different areas of economic life. In order to achieve available profits to cover the obligations and provides the appropriate reserves to cope the unexpected fluctuations. The function of investing in insurance companies in the allocation and operation of the available financial resources, as well as reducing the investment risks, the research also aims to clarify the important role of insurance companies in the economy and to identify the constraints that will be faced, and identify the most important factors for the success of the function of investment in insurance companies, the research found a set of suggestions that show the important role of insurance companies in economic development and recommend for developing the insurance sector to contribute in the development process

The role of research and studies centers in economic decision-making

Basima kzar hasan

Gulf Economist, Volume 32, Issue 29, Pages 136-187

Undoubtedly that the research and studies centers in the developed world, now occupies an important place, especially in the field of economic decision-making, The countries, community institutions and bodies have been taken depending on them to provide studies, reports, and consulting services in many of the economic issues, social political, security, military, cultural.
It could be say that, there is close relationship between research and studies centers and development process. Whenever the research and studies centers have been developed. This development will have a significant impact on raising the level of the economy and that the neglect of this vital activity leads to the deterioration of the economy and failing.
This study aims to identify the nature and level of the role played by Arab Research and Studies centers to influence decision-making in the economic and political aspects, and security all approach this role is the role played by research centers in developed countries .villa for the current reality of the centers of the Arab Research analysis of the nature and magnitude of the challenges faced and limit their ability to perform their role in the required manner .dually our Arab need to be aware that the centers have to responsibly and efficiently in support of decision-makers the tools they need to address the current and potential. As the challenges have to research centers to regain its role in which it established for him as an effective tool for the production of strategic projects
Hence the search is divided into three main sections first discuss the concept and importance, and the second deals with the economic role, and the third is talking about a set of recommendations contribute to deepen the debate on the important role played by research and studies centers, and enrich their role in making economic decision at the level of the Arab countries, which testifies constant changes in the political process since the so called Arab spring.

The Economic effects of oil policy in Saudi Arabia

Naji Sari Fars

Gulf Economist, Volume 32, Issue 29, Pages 188-213

The political importance of oil stems from its role in shaping the economic policy in Saudi Arabia, as oil revenue is the main source that finance budget of the country and various economic sectors. Its impact, however, embodies in the Increase of level of GDP and per capita GDP in order to reach the basic goals of economic and social development. Moreover, this policy is a tool for achieving the economic goals. Saudi Arabia occupies ranked as a first producer of crude oil from among oil-producing countries. The hypothesis of study assumes that make a change in Saudi oil policy for economic diversification ought to be depended on successful oil policy that affect other economic sectors and reduce its dependence on oil revenues for financing its public budget. In spite of the high per capita income of Saudi Arabia, but it is still dependent on oil revenues to finance the public budget. Accordingly, Saudi Arabia is seeking to diversify its sources of income by raising non-oil revenues to reduce dependence on oil export.