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.

Organisation of Islamic Conference: Contemporary Challenges of Member States

Issues concerning unemployment, the development of human resources and enhancing social protection feature prominently in the cooperation agenda of the OIC. Deliberations on the contemporary challenges of OIC Member States

IMF Mission to Egypt: Improvement in Targeting of Energy Subsidies

A staff mission from the International Monetary Fund visited Cairo during April 2-15. At the conclusion, Andreas Bauer, Mission Chief for Egypt, issued the following statement: “The mission made progress

IMF: The Risk Side of Exceptionally Low Interest Rates

Several years of exceptionally low interest rates and bond buying by some advanced economy central banks have improved some indicators of banks’ health while supporting the economy and financial stability,

IDB Approves US$ 617 Million in Development Funding

The Islamic Development Bank (IDB) recently approved US$ 617 million towards funding development projects including  important projects in the areas of education (US$ 174 million for Indonesia), electricity (US$ 319.6
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GCC: A Reliable Partner in Energy Supply

Saudi Oil minister Ali bin Ibrahim Al-Naimi believes that future demand for oil will remain strong, despite the difficult global economic situation. Speaking at the opening session of the Doha

Technological Innovation Must Power Economic Growth in Africa

Technology, science and innovation play a key role in the development of Africa, United Nations officials stressed today, calling on policymakers to redouble their efforts to support this field and

Big Crowds Witnessed at Cityscape Egypt

CAIRO – Cityscape Egypt has once again delivered a strong turnout of serious home buyers and investors packing the exhibition halls over the past three days.  Mr. Ashraf El Gharib,

UNCTAD on Emerging Markets FDI Trends

Foreign direct investment (FDI) going into and out of the emerging economies of Brazil, Russia, India, China and South Africa – collectively known as BRICS – is mounting in global
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Arab Countries In Transition: Where are they Heading?

By Masood Ahmed Director of the IMF’s Middle East and Central Asia Department “You can tell whether a man is clever by his answers. You can tell whether a man

International Chamber of Commerce: G20 Openness Could Improve

Presenting pre-findings of an ICC Open Markets Index at an international business dialogue in Paris on March 4th, ICC Chairman Gerard Worms said that government authorities equipped with better information

The International Financial Institutions: Collaboration for Development and Growth

Leaders of the African Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, International Monetary Fund, and the World Bank Group pledged on February 26, 2013 close collaboration

Corruption: Eating at the Fabric of Afghan Society

The total cost of corruption in Afghanistan has significantly increased over the past three years to $3.9 billion, according to a United Nations survey released this month, which says that
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