Introduction
Oil is a natural resource drilled from countries that have oil deposits. The Middle East relies heavily on oil exports to finance various projects. However, there are fears of a shortage of oil deposits in the coming years due to over exploitation of this resource.
This region will not have adequate oil deposits to supply to other nations leading to serious effects on its economy. This proposal presents viable economic options that will enable the economy of the Middle East to remain vibrant despite a decline in oil supply.
Background
The Middle East produces more than 50% of the world’s oil products that are exported to Brazil, China, India, and Russia. The increase and spread of modernization push this demand beyond the ability of nature to produce this product. This leads to price increase and economic sabotages as nations struggle to shape their relations with eastern countries.
Oil prices affect the prices of all other commodities in all economic sectors. However, there are fears that the oil deposits in the Middle East will not be sufficient to serve the whole world and there are speculations that this region will run out of oil by 2050. Currently, there is almost a 50% increase in oil demand by emerging markets, and this will lead to an increase in its prices.
These fears have forced this region to start planning and identify ways of sustaining their economies. However, it is crucial to note that even if these oil deposits become depleted, they will not be empty. Unfortunately, the remaining oil deposits will not be sufficient for both local and foreign use. Also, oil exploration will become very expensive, and this will force these nations to seek other alternatives for financing their projects.
Economic Alternatives
Most nations like the United Arab Emirates Saudi Arabia have started to embrace modern commercial activities to reduce over-dependence on oil. Other nations should follow suit and adopt commercial practices like Islamic banking that will ensure their oil savings are channeled to other sustainable economic activities.
Also, these nations should popularize the use of Islamic insurance services to diversify their investments. This region should develop its tourism industry to ensure it attracts foreigners and locals to various scenic places. The long term conflicts that are synonymous with this region have left this place worst than a scene in a movie.
Moreover, the region can embrace agricultural activities to ensure the local population does not experience inadequate food supply. Even though, this region receives insufficient rainfall it can embrace greenhouse farming that uses less water. Also, it should start rearing animals in controlled rooms to ensure the population gets cheap and ready food for consumption and local trading.
Transport systems should be developed to ensure the region offers a variety of transport options to and from various destinations. The United Arab Emirates flights should be increased and diversified to offer their services to almost all regions.
Opposing Views
There is no likelihood that this region will have a smooth transition from over-dependence on oil to other economic activities. Therefore, it should start exploring the above options as soon as possible to avoid an economic crisis.
Also, the income generated from other economic activities will not be sufficient to afford the locals the life they are used to living. Finally, the money collected from oil exports has benefited a handful of unscrupulous politicians and traders. Majority of the population is suffering due to power struggles to own and control this mineral. This makes this region to experience repeated conflicts and autocratic regimes.