Middle East

Middle East

The Middle East (including Egypt but excluding North Africa) had over 684m people spread over 17 countries in 2018. Total GDP was 3.7 trillion USD and average GDP per capita was 18,581 USD. Total exports were 1.5 trillion USD. Civilisation began in the Middle East with the emergence of the Sumerians around 4000 BC. They invented writing and their cuneiform writings survive to this day. Around 3,000 BC, Ancient Egypt began to develop along the Nile while in 2300 BC the Akkadian empire formed in Southern Mesopotamia. Following the Akkadians, the Babylonian empire emerged with Hammurabi’s code of law arguably its most famous artefact. After the Babylonians a procession of empires ruled over the Middle East including the Assyrians, Medes, Persians, Macedonians, Romans, Parthians, Sassanids, and Byzantines. In the 7th century, Islam emerged from Mecca and Medina and within three generations the Arabs had established a Caliphate that covered the Arabian Peninsula, Persia, North Africa, and parts of Spain. The Seljuq Turks captured Anatolia in the 7th century ending Byzantine rule there. The Arabs and Turks played an important role in trade along the Silk road, bridging Asia and Europe. Crusaders arrived in the Levant in the 11th century after pleas of help from the Byzantines and maintained the Kingdom of Jerusalem for around 100 years before being defeated by the Seljuks. The Seljuks were displaced by the Mongols who in turn were replaced by the Ottomans. The Ottomans remained the dominant power until the 20th century. In the 16th century the Portuguese reached Arabia and established several forts along the Persian Gulf. In 1798, Napoleon invaded Egypt but French rule quickly turned to semi-autonomy from the Ottomans. In 1869, the Suez Canal was opened transforming trade in the region. The British established a military presence in 1882 to safeguard trade to India. The British also signed treaties with the various rulers in the Trucial Coast on the periphery of Ottoman influence. They maintained their influence in the region until the early 1970s, acting as guardians for many of the smaller states. When they left, US influence increased. The modern Middle East emerged after WW1 with the fall of the Ottoman empire. The British and French decided on the new borders in the Sykes-Picot agreement. The 1917 Balfour declaration controversially paved the way for the establishment of Israel in 1948 . Oil was first discovered in Saudi Arabia in 1938. It heralded the transformation of the region. In the 1950s and 1960s, the Arab oil states took greater control of the oil industry, nationalising their national oil industries and forming OPEC in 1960. In 1967 and 1973 they flexed their new geo-political muscles with oil embargoes that demonstrated Arab solidarity against Israel. The 1979 Islamic revolution in Iran changed the geo-political dynamic in the region. As did the Iraqi invasion of Kuwait in 1990 and the first and second Gulf Wars. The 2010, Arab Spring saw democratic change in several countries in the region, but it also resulted in a civil war in Syria and instability in Iraq. In 1981, the Gulf States formed the Gulf Cooperation Council (GCC) signalling the desire for greater economic integration. There have also been strong efforts by individual GCC countries to diversify their economies. In recent years this has seen increased investment in ICT and start-ups.

Banque Misr Liban: Committed to Excellence in Service Poised for Strong and Sound Future Growth

A number of factors help Banque Misr Liban to stand out in Lebanon’s relatively crowded and competitive banking sector. It is one of Lebanon’s oldest banks as it was established

CFI.co Meets Dr. Naseer Shahir Homoud

Born in 1963 at Irbid, Jordan, Naseer Shahir Homoud is a multi-dimensional personality – primarily a real estate developer but also well known as an author and philanthropist. A dentist

Rethinking Economic Growth in Arab Societies

After decades of skewed development policies, social injustice, and poorly managed economic liberalization, Arab countries must rethink their growth strategies, says a United Nations report released on February 5th, stressing

CFI.co Meets Hisham Alrayes

Hisham Alrayes has been Acting Chief Executive Officer of Gulf Finance House since April 2012. He is responsible for overlooking the overall performance of the Bank, setting the Bank’s strategic
Read more

Global FDI Recovery Stalls in 2012

Macroeconomic fragility and policy uncertainty for investors has led to an 18 per cent decline in global foreign direct investment (FDI) inflows last year, to an estimated $1.3 trillion, the

IFC Study: Obstacles to Growth and Job Creation

A new study by IFC, a member of the World Bank Group, finds that much-needed jobs in developing countries can be created at a faster rate if policy makers and development institutions

Unleashing the Economic Potential of the Maghreb – the Role of Foreign Investment

Excerpts of a speech given by Christine Lagarde, Managing Director, International Monetary Fund at a conference in Mauritania in January, 2013 We meet in the wake of the great Arab

UN Downgrades Economic Forecasts for 2013/14

World economic growth has weakened considerably during 2012 and is expected to remain subdued in the coming two years, according to a United Nations report in late December, which calls
Read more

Replacing Aid with Trade

Modern India, boasting its own space programme spends 70 billion pounds annually in fighting poverty and no longer needs British aid. Earlier this year, finance minister Mukherjee described Britain’s eight

Janamitra Devan: The Innovation Imperative

Overcoming the Myths and Recognizing the Realities of Innovation, Job Creation and Prosperity By Janamitra Devan Innovation drives competitiveness, and maximizing competitiveness is indispensable to achieving sustainable job creation. Any

UN Security Council Urges Wider Role for Women’s Groups in Peace Efforts

The Security Council has called on the international community to give women’s civil society organizations a prominent role in the negotiation, planning and implementation of peace processes and post-conflict development

IMF | Gulf Cooperation Council: Economic Prospects and Policy Challenges for the GCC Countries

Executive Summary The already sluggish global recovery has suffered new setbacks and uncertainty weighs heavily on prospects. The euro area crisis intensified in the first half of 2012 and growth
Read more
CFI

Published by
CFI

Recent Posts

North America

5 years ago

Latin America

5 years ago

Europe

5 years ago

Asia Pacific

5 years ago

Africa

5 years ago