Economies of the Middle East

Many different types of economies are in SW Asia.

Many countries are mixed economies Over the last 60 years the major export has

been oil. Oil affects settlement due to availability of

jobs The have also exported grain, silk, and

cotton.

War is a major threat to much of the Middle Eastern economies

Natural resources are also affecting economic growth

Since the discovery of oil many countries stopped investing in other areas of their economy.

If a country does not have oil in this region they are typically poorer

Physical barriers also make it difficult to produce and transport goods. Ex: deserts

Israel Israel has a mixed economy. They do not have many resources and rely

on importing grains, oil, etc. They do produce high tech equipment,

some crops, and diamonds. Service industry is a big part of their

economy. They do rely on US economic and military

aid

Israel has been through many wars and seen a large number of immigrants enter their country so the government has taken control over much of the agricultural industry to address their problems.

The Gulf of Aqaba is a vital region for Israel because Israeli merchants can reach the Red Sea to ship their goods.

Saudi Arabia

Has a mixed economy but the government controls most aspects

Main export- oil created great wealth for monarchy

Oil helps fund education, defense, transportation, health, and housing

Oil provides most of the income for people

Oil also effects where the people live since most live near the oil industry along the Persian Gulf.

In East Saudi and the Gulf Plains people have settled along the natural springs in order to farm

Most of the country is desert which leaves much of the land uninhabitable to live.

They have also began to encourage other industries to help their economy grow within the last few decades. Ex: steel, gases, plastics, petrochemicals.

Turkey Much of Turkey’s economy is controlled

by it’s government. Much of it is also based on farming Clothing and textiles are a major industry Service accounts for half of their economy After WWI Turkey began to invest in

weapons and steel. Since the 1980’s Turkey has been

allowing more private businesses.

Iran

War can also influence economy and since the Iran/ Iraq war Iran has invested more money into military industries.

Iran has a high unemployment. It offers little protection for human capital Iran has large oil deposits along the Persian

Gulf which provides them vast wealth and a means of transport for goods.

Other countries

Countries such as Iraq and Kuwait have economies that rely on oil.

Syria’s income is largely dependant on gas and mineral deposits for trade.

Lebanon’s economy is based mostly on agriculture.

Afghanistan relies on minerals and precious stone deposits to support their economy.