Description of the Topic
The Middle East energy sector has been extremely instrumental to the economy of the region. It is dominated by the petroleum or oil industry. According to OPEC (2018), the region accounted for 64.5% of the total oil reserves across the globe. Oil is so ingrained into the fabric of the Middle East that lack of it could potentially cause a collapse of the economy. On that note, most nations in the region have been pumping billions of dollars to ensure the sustainability of the oil industry (Sarant, 2016). Yet, amidst the complete dependence on oil for economic growth, Lee (2019) notes that the reserves are continuously dwindling, which spells doom for the future of the region’s economy. In Iran, overdependence on oil economy is already proving problematic with the recent drop in the GDP to 3.8% between 2017 and 2018 (The World Bank, 2018). Ranking fourth in the world in terms of crude oil reserves, oil has single-handedly grown Iran’s economy over the years. The current study will assess the positive impacts of oil in the economy of Iran as a representative of the Middle East over the years.
Objectives of the Study
The primary aim of this study is to highlight, examine, and discuss the positive impacts of oil on the economy of Iran, and the Middle East at large. Other objectives will include: