The Major Impacts of Energy Industry on the Economy of the Middle East
The Middle East is one region that has based its economy on energy, with the region currently being the top producer of oil and natural fossil fuels. However despite these facts the Middle East’s energy industry has been surrounded by numerous questions as to whether the resources can still sustain the economy. The economy is wholly dependent on energy with essentials like water requiring energy for distillation processes. The region’s resources have been pressured by two major factors, the rapid population increase and economic growth and it is only now that the introduction of renewable sources of energy is beginning to make sense than ever. Countries like Saudi Arabia amongst others have set goals to allocate 10% of their power production of renewable resources like solar by the year 2020.
The energy industry of the Middle East is at the crossroads with decisions to be made as whether to rely on non-renewable and crumble in the foreseeable future or to turn to non-renewable and save the growing economy. The increase in the domestic consumption is reducing the amount of resources available which in turn is negatively impacting the region’s exports which are a key to the economic stability of the region. The globally it has now become a reality that non-renewable resources are becoming more and more unreliable and if new sources of energy can offer enough sustenance the energy industry of the middle east will crumble.
The energy industries in the Middle East have created a huge impact on its economy. Due to the huge reserve of various energy resources the middle countries were able to attract the major investors of the world. The investors invested billions of dollars, which helped their economy a lot. The foreign companies employed several thousands of people in their industries. It helped them to eradicate the word unemployment. The energy companies are paying a huge amount of taxes that builds a strong impact over the economy. Due to the development of the energy industries, a large number of infrastructures have been developed in the last few decades and still they are counting to rise above the sky. The Middle East countries have built huge number five and seven star world class hotels to attract and accommodate the investors and tourists.