Managing Change - Research Paper Example

These achievements however, have been coupled with various drawbacks but with the application of economic theories with an illustration of the Contingency Theory such hurdles are to be tackled. The study provides recommendations on the various aspects that require adjusting for the economies to thrive even more. With the onset of the financial crisis within the past decade, the financial markets in the Gulf region have undergone various changes and institutions and business entities have adopted new market strategies to counter the implications of the crisis.

The Cooperation Council for the Arab States of the Gulf countries (GCC) - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates (UAE) are keen to improve their economic competitiveness in the international market. From the early 1970s to the early 1980s the GCC member countries made significant developments in the financial front. The financial institutions were beneficiaries of the lucrative returns brought about by the abundant oil revenue. At the time up to the 1990s, the primary focus of the institutions was on short-term lending trade, building and construction and manufacturing.

With the 1990s came global financial integration that entailed the carrying out of economic restructurings especially due to the effects of the Gulf war. Technological novelty and new market strategies centred on consumer-based services were adopted. Following the Gulf war was a variation of loan problems in banks across nations affected by it. The financial set-up of the GCC has overtime faced a number of challenges that revolve around the augmented role of the private sector in the financial market, the high demand for new financial services and the aspect of global participation.

Efficiency and productivity are therefore a principal concern in this modern age. The countries in the GCC have links with banks that are expansively