Everything has to end sometime! The question is, what will happen to all those half-built buildings, and all those over-the-top construction projects still in the works? It must be a strange time to be living in the Gulf states.

When oil rocketed to $148 a barrel everyone in the Middle East were unveiling ever-more ridiculous plans for outlandish developments. Now that the bubble has burst due to the fact this oil price was based on speculation, developers are canceling projects and laying off workers. If it stays sub-$40 then the region could be in big trouble.

Of course things are looking a lot less rosy at the moment, but it is inevitable that the price of oil will rebound at some point. It's a finite commodity that the world still thirsts for.

Many of these major construction projects are attempts by Gulf economies to transition to a post oil future. The current collapse in oil prices only underlines the importance that such work continues. Perhaps a little more moderation is called for in the scale and ambition of some of the projects, but their success will be key to the region's long term economic future.

I'm with Paul - the bubble had to burst sometime, and it was simply a matter of time before this happened.

We all know oil prices are notorious for fluctuating and after the highs of last summer I think that the oil industry should feel the impact of the current economic crisis - they aren't immune after all, and neither should they assume they are.

That said, I'm sure that the region will be back on track in the near future, just as it has recovered time and time again – and then we'll be back to discussing new record highs.

These are some of the wealthiest people in the world we're talking about. I don't think we need to worry too much about them.

Yes the Bubble had to burst, thats the essence of a bubble! But it will pick up again, of that we can be certain. check this out: http://www.bloomberg.com/apps/news?pid=20601082&sid=ahnU7GHa1U48&refer=canada

What about the ex-pats over there losing their jobs?

On an optimistic note I've read that the finance ministry in Saudi Arabia has announced that it is expecting to run a budget deficit in 2009, for the first time in seven years - economists have branded the finance plan essential to help boost the deteriorating confidence in the finance sector and counteract slowdown in the country. Although I wouldn't normally condone throwing money at a situation I think this will give the region a short-term boost to get back on track and also counteract the falling oil prices.

i saw this too, Kelly. I thought i'd post a link. http://www.arabianbusiness.com/pda/article.php?543699.10.1

The low-paid Indian workers are leaving in their droves too.