Ask many people to think of the Middle East and they will think of the luxury cities of Dubai, Doha, and Riyadh. Head to Paris, Rome, London, or New York and you will see people from the Middle East spending in luxury shops and driving supercars around the cities. But how come there is so much money in the Middle East? What makes the region so rich? Well, actually, a number of factors…
1. The Region Is Rich In Oil
The first reason why the Middle East is rich is because of the regions massive oil reserves.
The Middle East has some of the largest oil producing nations in the world. Saudi Arabia, Iraq, the United Arab Emirates (UAE) and Kuwait are all in the top ten oil exporting countries globally. The world’s economy runs on oil, and many Middle Eastern countries have become fabulously wealthy from it.
When many people think of the richest countries in the Middle East, they are thinking of oil producing nations. The region was poor by global standards until the discovery of oil in the 1930s. Now Middle Eastern countries are able to use the wealth generated by oil to fund diversifications in their economies, including focusing on tourism, aviation, global business and infrastructure projects.
Oil is one of the most vital resources in the world. The Middle East is rich partly because it has so much oil.
2. The Middle East Has Huge Reserves Of Natural Gas
A second reason why the Middle East is rich is because of its reserves of natural gas.
As well as oil, the Middle East is one of the largest gas producing regions in the world. Qatar, the UAE, and Saudi Arabia are all among the biggest natural gas exporting nations globally. Natural gas is used around the world in key energy, transportation, and commercial sectors. The money generated from selling natural gas on the global market has made parts of the Middle East incredibly wealthy.
Between oil and natural gas, the Middle East has some of the world’s largest reserves of the most important natural resources. Like with oil, many Middle Eastern countries were poor until the discovery of natural gas reserves. Now that countries in the region are able to export natural gas, they have been able to prosper and become vital parts of the global economy.
3. The Middle East Gets A Lot Of Tourists
A third reason why the Middle East is wealthy is because it is a centre for global tourism.
The Middle East has an incredibly rich history. Ancient sites and cities that are centuries old, as well as stunning landscapes and modern luxuries, draw tourists from all over the world. Countries such as Egypt, Jordan, and the UAE make significant income from visitors. The Middle East has long been a destination for tourists, and this is a reason why it is wealthy.
Three of the worlds largest religions have their origins the Middle East. Christianity, Islam, and Judaism all have holy sites across the region. Huge numbers of people travel to the Middle East to worship at places of religious significance. This brings millions of tourists to the region each year and is another reason why countries in the Middle East, such as Saudi Arabia, Iraq and Israel, are rich.
4. The Middle East Is A Centre For Global Business
Another reason why the Middle East is prosperous is because it is a centre for global business.
Many Middle Eastern nations, including Bahrain, Qatar, Saudi Arabia, and the UAE, actively attract businesses from around the world to establish themselves in their countries. Generous tax regimes, combined with lucrative investments, opportunities for enterprises and pro-business government policies, have meant global brands have began basing themselves out of the Middle East. As businesses have been attracted to the region, it has become richer.
As Middle Eastern countries have begun diversifying their economies and moving away from natural resources, they have used the wealth their resources have generated to develop businesses. They have also used their wealth to fund companies and create an economic environment that is attractive for overseas companies to invest in.
The Middle East has become a hub for trade and commerce in recent decades and this is a major reason why the region is wealthy.
5. The Region Is A Transport Hub
A further reason why the Middle East is wealthy is because it is a transport hub.
In recent decades, the Middle East has become central to the global aviation industry. Countries such as the UAE, Qatar, Bahrain, Saudi Arabia, and Oman all have major airlines and some of the busiest airports in the world. The region makes significant income from its aviation sector.
As well as being a connecting hub for travellers from all over the world, the transport links of the Middle East make it a prime location for businesses and trade. Many international enterprises have logistics facilities located in the Middle East as it is easy to reach global markets.
Alongside being a leading region for aviation, the Middle East is rich because of its major ports and sea-cargo hubs. The UAE has the twelfth largest container port in the world. Oman and Saudi Arabia also have enormous ports through which billions of tones of cargo travel each year. Being a key location for global trade makes the Middle East wealthy.
6. The Middle East Is Becoming The Forefront Of New Technology
The Middle East is rich because it is at the forefront of emerging technology.
Many Middle Eastern countries have economies that are highly dependent on natural resource extraction. However, as countries such as Saudi Arabia, the UAE, Qatar, and Kuwait, begin to diversify their economies and move away from oil and gas, much of their focus is going towards developing new and advanced technology. Their success in this over recent years is a key factor in why the region is wealthy.
Middle Eastern countries have been successful in pulling in investment from global technology companies to the region. They have set-up tech hubs, as well as campuses where technology companies can pool their resources. There are also countries in region who put significant funds into technological research.
The Middle East’s focus on the technologies of the future is likely to make it even richer in the coming decades.
7. The Region Gets A Lot Of Migrant Labour
The Middle East is a major region for migrant labour, and this is a reason why it is wealthy.
People from all over the world move to the Middle East to work. Huge numbers of people from poorer nations, including India, Pakistan, Bangladesh, the Philippines, and countries in sub-Saharan Africa, migrate to the Middle East to find work. This pool of cheap labour helps make Middle Eastern economies competitive and, although it is controversial, its also a reason why the region is rich.
Alongside cheap migrant labour, another reason why the Middle East is prosperous is because of the highly skilled and educated expat workers who move to the region. Countries in the Middle East, such as Bahrain, Saudi Arabia, Qatar, Kuwait, and the UAE, attract professionals from a huge range of sectors who move to work for bigger salaries and lower taxes. This pool of highly skilled workers, often from Europe and North America, is another reason why the Middle East is wealthy.
8. The Region Is In A Strategic Location
A final reason why the Middle East is rich is because of its strategic location.
The Middle East is located directly between Europe, Asia, and Africa. For centuries it has been a region where people and trade have moved through connecting major civilizations. Today, the Middle East is wealthy because it is able to capitalize on its place between important global markets. Simply put, the location of the Middle East is key to its prosperity.
As well as being an important location between vital regions of the world, the strategic location of the Middle East ensures the countries of the region support from powerful allies. Major world powers, including the US, China, Russia, and the European Union, all invest heavily in the Middle East to ensure the countries of the region remain prosperous.
The strategic location of Middle Eastern countries makes them key to the current international order. It is also a big reason why they are wealthy.