Influence Of Iran Relations On Fdi During Saudi Arabia And Gulf Countries

The two most important resources in this region are oil and water. The huge oil “deposits there and in the neighboring countries around the Persian Gulf (the United Arab Emirates, Kuwait, and Bahrain) established these countries as some of the richest in the world” (Document F). Nevertheless, the countries who do not have as much access to oil are weak economically. Oil is the biggest export in the Middle East, and in a way, the amount of oil a country has determines how wealthy that country will be. Another component of oil is that countries and ethnic groups are disputing for the control of prices of this economic resource. It has gone to the far extent of foreign countries attempting to control the oil price and also the use of weapons for this (Document E). In addition, it is impossible for each country to have equal access to water due to the unbalanced distribution of these essential resources. As a result of this, these countries are fighting for as much control of water sources they can get. Radically, there are many countries in the Middle East that are striving to obtain as many natural resources to strengthen their economy and lifestyle, and it seems most obvious that the scarcity of these resources is a significant problem in the region

For the United States, the Gulf region remains one of the most geo-strategically important locations in the world for diplomatic, intelligence cooperation, and business opportunities such as hydrocarbons and arms. This strategic cooperation has provided the region some stability, particularly with the rise of Iran and the Shi’a crescent and the chaotic outcome of the war in Iraq. The council members have also relied on the United State to fend off some of the domestic challenges to the existing regimes that are both internally and regionally rooted.

These sanctions range from financial institutions, oil refinery and production, third party investors, weapons trade, and investment banking. Unfortunately, these sanctions have yet to effect a change in the Iranian administrative policy on the development of

The Middle East is one of the birthplaces of human kind’s civilization. Since the Ancient Egypt, Sumer, the Arab Empire, Turkey Empire, or even to present day, the Middle East has always been a valuable strategic point for not only because of its geographic location but also it full of petroleum and nature gas. According the OPEC (Organization of the Petroleum Exporting Countries) that 66% of the global oil reserves are in the Middle East and only 6% in North America, this makes a lot of powerful countries want to share a pieces of the Middle East, Stephen mentions “Much of the world 's oil wealth exists along the Persian Gulf, with particularly large reserves in Saudi Arabia, Kuwait

Persian Gulf Development Literature Oil Curse Literature Arab and Islamic Factors Regional Ovemiew and Historical Background Dubai's Development History

Two-thirds of the world’s remaining oil reserves are in the Middle East which will make international policy imperative in the future (Campbell 2007). It is

Middle East is strategically important region where mostly world half of oil reserves are located. Three countries: Saudi Arabia, Iran and United Arab Emirates accounted for 57% of total Middle East liquids fuels production. (Liquid fuels production in Middle Eastern and North African countries n.d.) Although due to increased domestic production of petroleum and natural gas, the United States is reducing its dependence on foreign oil with imported liquid fuels, but still oil means a lot to the US as oil prices is determined internationally by what is available for all global consumers. Therefore, to safeguard the security of Oil supply in the Middle East and ensure stable access to affordable oil is in the vital interest of the America. (Mexican crude oil shipments to Europe and Asia are rising as U.S. imports fall

In his paper about Iran’s nuclear program, Barry R. Posen emphasized that Iran’s nuclear program may result on regional and global instability. On regional level, neighboring countries of Iran will feel threatened with Iran’s nuclear power. This situation may lead them to follow Iran’s step in developing nuclear weapons even though they do not have the capability to ensure the security of their nuclear sites. Clearly, nuclear weapons proliferation will put the Middle East in escalating dangerous situation. On global level, the U.S. and its allies are concerned that the situation in the Middle East may harm their national interests. The Middle East is still a prominent producer of oil which is the main energy resource for industrial

Conflict over energy resources—and the wealth and power they create—has become an increasingly prominent feature for geopolitics particularly in the Middle East . The discovery of oil in the late nineteenth century added a dimension to the region as major outside states powers employed military force to protect their newly acquired interests in the Middle East. The U.S.’s efforts to secure the flow of oil have led to ever increasing involvement in the Middle East region’s political affairs and ongoing power struggles. By the end of the twentieth century, safeguarding the flow of oil from the Persian Gulf had become one of the most important functions of the U.S. military establishment. The close relationship between the United States and the Saudi royal family was formed in the final months of World War II, when U.S. leaders sought to ensure preferential access to Saudi petroleum. The U.S. link with Saudi Arabia and other countries in the region has demonstrated to be greatly beneficial to both parties, yet it has also led to ever deepening U.S. involvement in regional politics.

country to review its foreign investment in oil producing nations, which were mainly Arab countries.

Throughout history the Middle East has been home to some of the most powerful and influential empires in the world. As with all great empires they did not arise without difficulty. Though the Middle East has had periods of great prosperity, it has also had periods of poverty and stagnation. Within the last one hundred years the Middle East has seen many changes relating to borders, religions, and international politics. Much of the changes that have happened originated from diverse ways of thinking especially when it comes to religion and culture. Conflicts that occur in the Middle East such as Israel, Iran, Iraq, Saudi Arabia, and Afghanistan have monumental effects on the global economy predominately due to the massive oil industry in the region and competition between outside nations trying to expand influence.

In conclusion, the strategic importance of Middle East benefits most if not all nations in the World. However, the parameters to measure this have to be in a globally extended framework. This means that any conflict, especially that which may between the West and the East, May ultimately spell the Middle East doom by defeating its strategic importance, Anderson & William (2000). However, the Middle East is to maintain its geostrategic importance if foreign relations between the West and the East and

relations between Saudi Arabia and Iran has been considered the most significant, lasting effect of the Arab Oil Embargo. However, these changes were much less direct than those in the energy sector. Even though the embargo led to the United States allying with Saudi Arabia when they had previously been enemies, it can be argued that the embargo was not a direct cause of this shifting alliance (Myre). Furthermore, the fact that the United States is now rivals with Iran is more the result of the overthrow of the shah, who was effectively a puppet of the United States, than a consequence of the embargo itself (Myre). While, the effects of these changing dynamics are still seen today and are undoubtedly significant, the relationship between the embargo and the changing U.S. energy sector and policy is much more visible and direct. What’s more, the argument that the embargo most influenced U.S. energy is backed with an abundance of evidence, while the evidence suggesting the changing international relations resulted from the embargo is shaky and tentative at best. Due to this, it is apparent that the claim that the embargo affected U.S. energy policy most significantly is the correct

Egypt today can be a viable market for the foreign investor, especially the investor who has the ability to see the rewards of in investing in the region for the long haul. The world and Egypt both realize that the region is the gateway to the Middle East. Egypt is leading the way for Arabic countries to embrace a new way of doing business and opening their borders to the ‘global village’ concept.

The Middle East region is a conservative cultural and religious area that grew at only half the rate of other developing countries during the 1990s. A number of factors such as structural imbalances, the so-called 'curse of natural-culture and religious conflicts, are highlighted for the slow economic development in the Middle East. Similarly, Abed (2003) identifies five main causes holding back the economic growth of the Middle East i.e. lagging political reforms, dominant public sector; underdeveloped financial markets; high trade restrictiveness and inappropriate exchange regimes. apart from these , some of the others factors include the lack of integration into the global