The Middle East importance

The stability of the Middle East and its importance to the global economy.

 The Middle East region extends from the Arabian Gulf in the east to the Atlantic Ocean in the west.  Availability of raw materials and petroleum materials.  In all countries of this region.  But in different proportions between countries floating on seas of oil and gas.  Among countries that only have enough for half of their population’s needs and import the rest of their consumption from abroad.  But there are two seas: the Red Sea and the Mediterranean Sea.  And the presence of the Suez Canal linking them.  It is a very important shipping corridor.  It reduces the cost of sea freight between the continent of Asia and Africa.  For all these reasons, the Middle East region has tremendous economic importance for the rest of the world.  Whether Japan and China to the east or the European Union to the west.  But the Middle East countries are a large market.  It enjoys the presence of consumers with very high incomes.  Like citizens of Gulf countries.  Then middle- or low-income consumers in the rest of the country.  But the importance of the Middle East is not only due to the region’s richness in natural resources

 But due to the diversity of consumer tastes and their different incomes.  This leads to the interest of large companies in the world.  To invest or open branches or offices.  Countries such as China and India depend mainly on their supply of oil and gas.  On the countries of the Middle East region.  The influence of China and India and their production on the global economy is great.  The decline in China and India's production is for any reason or as a result of reduced oil and gas expansion.

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This decline may lead to more inflation and an increase in the prices of many products.

 It is not only India and China that need countries in the Middle East

 But Europe and America spend their products in this rich region.  It offers its latest products to the citizens of these countries.  Europe imports from India, China, and the rest of Asia.  It passes between the sides of this area.  Any tension or conflict has a significant impact on the prices of products.  Imported by Europe.  Which calls on Europe to increase its products exports to the rest of the world.  Consequently, the global inflation rate increases, and consumer suffering increases as their incomes remain stable.  Any tension may change the route of oil or delay oil supplies from the Middle East to the rest of the world.  It drives the price of a barrel of oil

 To the height.  The same result will be on the global economy.  From higher product costs and more inflation.  But the importance of the Middle East may be not only for the industrialized countries in Asia, or only for Europe and America.  But this importance extends to Africa, Pakistan, and East Asia, such as Indonesia, Philippines, and the rest of the world.  Because the Gulf region imports trained workers from these countries.  The money transfers of citizens of these countries represent one of the most important components of the national income of these countries

 Such as Indonesia and the Philippines.

 The Middle East and its stability are not the only thing that makes the global economy recover and its consumers enjoy reasonable product prices that suit their incomes.  But the global economy is linked to all geographical regions and countries in a giant chain.  Its links or components of this chain are linked to each other.  But what makes the Middle East more important is its control over maritime traffic.  The fall or absence of one of these links that make up the global economy.  As a result of tension or military conflict, it may lead to a further increase in the inflation rate and an increase in product prices.  Which affects consumers.  Who always wish for lower prices and affordable services.  This is beneficial for the global economy.  Because the higher the savings rate for consumers.  The rate of investment and the possibility of generating new projects with consumer money increased.  Which was provided from their income after satisfying their needs for cheap products and cheap services.  The rest of their income was collected through banks or entered into international stock exchanges through stocks and bonds.  .  To be converted into loans to a businessman starting a project or building a new factory.  Or a factory wants to increase and develop its production lines with the money of the stocks it offers on the stock exchange.  Peace and stability is not a request for a romantic dreamer.  Rather, it is an inevitable necessity for a better life and stability for the whole world.

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