JEDDAH, 19 October 2006 — The Saudi stock market crash earlier this year left investors with serious problems, ranging from high blood pressure and stress to divorce and homelessness. As a result, for many Saudis this Eid promises to be a low-budget observance.

“I can’t even afford to buy clothes this year,” said Bandar, a Saudi father and stock investor while speaking to Arab News. “I’m lucky,” he added. “I only have one small son who is too young to expect much. We usually use the money that I make trading every week in paying for our basic living expenses. Plus, I am trying to save for (private) hospital costs, as my wife is pregnant and expecting any time now.”

Ayman Radwan, a Saudi father of four, said the stock market crash had had a “big effect” on his family’s finances. “My wife, a teacher, and I used to invest most of our salaries in the Saudi bourse, but since the crash we have been a lot more reluctant,” he said.

“I think the disappointment of Emaar’s stock performance had an impact also as many were counting on it to pull them back up financially. That hasn’t happened,” he added, referring to the recent lackluster performance of Emaar Economic City’s recent public flotation.

Even the decorations and lights that typically donned virtually every shop and street are scarcer this year.

“This year is definitely not like last year,” said Muhammad Hussein, a sales manager at the Al-Attas Textiles for Thobes, which makes the ubiquitous white robes worn by men in the region. “This year, we hardly have any clientele as most men have to put their family’s needs ahead of their own and have decided not to buy new thobes for themselves,” he said, adding, “I think that businesses in every sector have been affected and are suffering this season.”

“I am grateful that I have a strong network of regular customers,” said Hani Ba-Gais, co-owner of an abaya and apparel shop at Bab Makkah in Jeddah. “There are certainly no new customers this year due to the lack of personal funds in the majority of people’s accounts. At the same time, I feel that whoever plays with the stock market gets what he deserves because putting your money in anything left to chance is the same as throwing money away.”

Indeed, many of the losses incurred by the stock market crash came from day traders seeking quick turnarounds (which has been compared by some to the moral equivalent of gambling) rather than long-term investment in capital gains through a well-researched, diversified and hedged portfolio mix of stocks and bonds whose gains (or losses) are measured over the years rather than hours or even minutes.

As a means of drawing in more customers, shops along Tahlia Street in Jeddah initiated an intense advertising and marketing campaign offering as much as 50 to 70 percent off on merchandise.

Muhammad Al-Madani, executive manager of the Al-Maddahia Group, responsible for malls such as Le Mall, Le Dome and E’toile, said: “Last year was better than this one according to customer volume but many of the shops are offering sales promotions and are going to reach their profit margins.”

Maha Khedar, a Saudi shopper and mother of six who was shopping on Tahlia Street, said that most shoppers appeared to be merely browsing. “Most of the traffic and crowds on Tahlia Street are mainly from those trying to change their atmosphere and see what is new in the shops,” she said. “Many are merely window shopping and meeting friends in restaurants and cafes, not buying.”