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((Short description|Efforts to unify production systems across Western Asia and Egypt))
((Refimprove|date=August 2015))
[[File:Middle East Economy.jpg|thumb|right|The [[oil industry]] significantly impacts the entire region, both through the wealth that it generates and through the movement of labor. Most of the countries in the region have undertaken efforts to diversify their economies in recent years, however.]]
'''Middle East economic integration''' refers to the process of improving economic cooperation, coordination, and connectivity among countries in the Middle East and North Africa (MENA) region. This process aims to create a unified economic space that allows for the free movement of goods, services, capital, and labor across national borders within the region. The objectives behind such integration include enhancing regional trade, stimulating economic growth, achieving economies of scale, and fostering stability and peace through economic interdependence.<ref name=MEFTA>((cite journal|last=Momani |first=Bessma |title=A Middle East Free Trade Area: Economic Interdependence and Peace Considered |journal=The World Economy |date=November 2007 |volume=30 |issue=11 |pages=1682–1700 |doi=10.1111/j.1467-9701.2007.01036.x |s2cid=155053491 |url=http://www.arts.uwaterloo.ca/~bmomani/WE-%20MEFTA.pdf |access-date=12 June 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120311234338/http://www.arts.uwaterloo.ca/~bmomani/WE-%20MEFTA.pdf |archive-date=11 March 2012 ))</ref>

Policies advocating Middle East economic integration aim to bring about peace, stability, and prosperity in the [[Middle East]], which they believe can only be sustained over the long run via regional economic cooperation.<ref name="MEFTA" />

Efforts towards Middle East economic integration have faced various challenges, including political conflicts, economic disparities among countries, and differing levels of economic development. However, initiatives like the Gulf Cooperation Council (GCC) and the Greater Arab Free Trade Area (GAFTA) have made strides in facilitating some level of economic cooperation and integration among member states.<ref>((Cite web |title=Challenges of Growth and Globalization in the Middle East and North Africa by George T. Abed and Hamid R. Davoodi |url=https://www.imf.org/external/pubs/ft/med/2003/eng/abed.htm |access-date=2024-03-25 |website=www.imf.org))</ref>

==Background==
((see also|History of the Middle East))
Former U.S.&nbsp;Secretary of State [[Warren Christopher]] said that, "Governments can create the climate for economic growth...[but] only the private sector can produce a peace that will endure."<ref>((cite conference |title=Prosperity in the New Middle East: Building the Structures of Peace, remarks made at the 1994 MENA Economic Summit |last1=Christopher |first1=Warren |date=1 December 2004 |location=Casablanca, Morocco ))</ref>

===Benefits of integration===
Countries seek greater regional integration in order to:
*make economic welfare gains
*increase the region's collective bargaining power in global issues
*maintain security and prevent conflict.

[[Economic integration]] requires good [[governance]], [[education reform]], [[social investing]], [[knowledge economy]], [[market economy]], [[privatization]] and [[freedom of press]].

===Objectives===
[[File:Hussein Clinton Rabin.jpg|thumb|right|A handshake between King [[Hussein&nbsp;I of Jordan]] and Israeli Prime Minister [[Yitzhak Rabin]], accompanied by former U.S.&nbsp;President [[Bill Clinton]], during the [[Israel–Jordan peace treaty|Israel–Jordan peace negotiations]], October 26, 1994]]

In 1993, Israeli Prime Minister [[Shimon Peres]], a leading architect of the [[Oslo peace accords|Oslo peace plan]], envisioned that:<ref name=MEFTA/>
<blockquote>
The next stage, after [[Bilateralism|bilateral]] and [[multilateralism|multilateral]] relationships have been established, will entail formation of regional industries through the cooperation of international
bodies and independent international consortiums. At this point, the regional economic process will be upgraded and the new reality, in which business precedes politics, will be instituted. Ultimately, the Middle East will unite in a common market after we achieve peace. And the very existence of this common market will foster vital interests in maintaining peace over the long term.
</blockquote>

===Integration and peace===
A prerequisite to economic integration is the establishment of peace. To date, several initiatives have enabled rapprochement among former enemies:

The [[Oslo Peace Accords]] and the 1994 [[Israel–Jordan peace treaty]] have promulgated greater economic interactions between Israel and its Arab neighbors. Despite this progress, problems like the [[Israeli–Palestinian conflict]] continue to be a hindrance to peace and development. Furthermore, the instability created by the [[war in Afghanistan (2001–present)|war in Afghanistan]], civil wars in [[Syria]], [[Libya]], [[Yemen]] and [[Egypt]] and the [[2003&nbsp;U.S.&nbsp;invasion of Iraq]] are considered negative factors to be overcome before the establishment of an economic union in this region.

==Middle East and North Africa (MENA) Economic Summits==
Following the Israel–Jordan peace treaty in 1994 s series of Economic Summits were organised, to promote regional economic development and economic cooperation with Israel.<ref name=fmprc>((Cite web|url=https://www.fmprc.gov.cn/mfa_eng/gjhdq_665435/dqzzywt_665451/2633_665453/2634_665455/t15530.shtml|title=Middle East/North Africa Economic Summit|date=2000-11-15|website=Ministry of Foreign Affairs, the People's Republic of China))</ref>
* The first Economic Summit was held in [[Casablanca]], Morocco, on 30 October to 1 November 1994.<ref>((Cite book|title=The Casablanca Report: The Middle East/North Africa Economic Summit, October 30-November 1, 1994, Casablanca, Morocco|publisher=Council on Foreign Relations|year=1995|isbn=9780876091791|url=https://books.google.com/books?id=pD65AAAAIAAJ))</ref>
* The second was held in [[Amman]], Jordan on 29-31 October, 1995<ref>((Cite journal|title=Financing National Pride: The 1995 MENA Economic Summit in Amman|journal=Political and Legal Anthropology Review|last=Anne Beal|first=E|date=1999-11-01|volume=22|issue=2|pages=27–40|doi=10.1525/pol.1999.22.2.27|jstor=24510863))</ref>
* The third was held in [[Cairo]], Egypt on 12-14 November 1996<ref name=fmprc></ref>
* The forth was held in [[Doha]], Qatar on 16-18 November 1997<ref name=fmprc></ref>

Following the 1997 conference, the Middle East peace process suffered a serious setback due to [[Benjamin Netanyahu]] government's policies that alienated the Arab countries (namely the refusal to work towards establishment of an independent Palestine State), which refused to discuss economic cooperation with Israel unless it made some concessions. As a result no more summits were held.<ref name=fmprc></ref>

In the 1995 summit the actions agreed included:<ref>((Cite web|url=http://www.israel.org/MFA/ForeignPolicy/MFADocuments/Yearbook10/Pages/Declaration%20of%20the%20Amman%20Economic%20Summit.aspx|title=Declaration of the Amman Economic Summit, 31 Oct 1995|website=Israel Ministry of Foreign Affairs))</ref>
* The establishment of a Bank for Economic Cooperation and Development in the Middle East and North Africa will be established in Cairo.
* The establishment of a Regional Tourism Board, the Middle East-Mediterranean Travel and Tourism Association, to facilitate tourism and promote the region as a unique and attractive tourist destination. 
* The establishment of a Regional Business Council to promote cooperation and trade among the private sectors of the countries of the region.
* The formal inauguration of the Economic Summit Executive Secretariat, which is located in Rabat and works to advance the public-private partnership, promoting contacts, sharing data and fostering private sector investment in the region.

==Regional characteristics of MENA==
((See also|Economy of the Middle East))
*Despite many attempts since [[World War&nbsp;II]] to promote economic integration and political cooperation among states in the MENA region, economic interactions have remained limited. The scale of regional merchandise trade is limited, amounting to a mere 7–8% of total exports and imports. (For comparison, regional trade in [[Europe]] amounts to about 60%.)
{|class="wikitable"
|-
!Intra-regional trade, (% of total trade)
![[European Union|EU]]
![[Central and Eastern Europe|CEE]]+[[Commonwealth of Independent States|CIS]]
!Asia
!Africa
!Middle East
!Western hemisphere
|-
|Average (1991–97), source: [[International Monetary Fund]]
|62.1
|29.6
|36.8
|9.0
|'''7.1'''
|18.3
|}
*Capital transactions have also been relatively limited, with the exception of large official flows from the oil-exporting economies to other Arab countries, particularly after the [[Chronology of world oil market events (1970–2005)|1973–4 and 1979–80 oil-price increases]]. Financiers estimate that up to US$2&nbsp;trillion in investable assets originate in the [[Persian Gulf]] region, the bulk of which is parked abroad, often as American [[Treasury bill]]s and in places like [[Switzerland]] and [[London]].<ref>http://www.middleeastconversation.org/?p=1749((Dead link|date=April 2020 |bot=InternetArchiveBot |fix-attempted=yes ))</ref> Increasingly, however, Arabs are investing in their home region; governments are also spending billions on infrastructure and national investment agencies are looking for opportunities.
*[[Tourism]] and other non-factor service-flow patterns have been quite segmented. Some countries—primarily [[Egypt]], [[Jordan]], [[Lebanon]], [[Morocco]] and [[Tunisia]]—have received substantial tourist flows from MENA countries. For others, particularly [[Israel]], political and security considerations limit regional tourism. 
*[[Labour economics|Labour]] flows have been important, taking the form of:
#Flows from non-oil economies to the [[Cooperation Council for the Arab States of the Gulf]]&nbsp;(GCC) economies, and
#[[Palestinian people|Palestinian]] labour working in [[Israel]]. In the 1990s, these flows have been subject to major restrictions and there has been recent substitution of Asian labour for Arab labour in both cases. MENA does not have the kind of labour mobility found, for example, in the [[European Union]], where the citizens of one country have the [[Freedom of movement for workers|right to work in others]].
*Other than the GCC and [[OPEC]], there has been little in the way of regional economic policy coordination.
{|class="wikitable"
|+Prospects for the MENA Region<ref>((Cite web|url=http://www.payvand.com/news/10/jan/1220.html|title = Iran's economic growth to hit 2.2% in 2010: World Bank))</ref>
|-
!MENA Region
!2009
!2010
! 2011
|-
|Real GDP growth
|2.8
|3.6
|4.5
|-
|Real GDP growth (PPP)
|2.7
|3.6
|4.5
|-
|Exports (change %)
|−9.5
|2.6
|5.2
|-
|Imports (change %)
|1.2
|4.9
|6.6
|-
|CA (% of GDP)
|−0.1
|1.5
|0.9
|}

==Initiatives for integration==
[[Image:Middle east graphic 2003.jpg|thumb|[[Arabic language|Arabic]], [[Persian language|Persian]], [[Turkish language|Turkish]], [[Kurdish language|Kurdish]] and [[Hebrew language|Hebrew]], are the main languages spoken in the Middle East by over 400 million people; English and French are common supplementary languages.]]

===Examples===
#[[Council of Arab Economic Unity]]: Established in 1964, with the ultimate goal of achieving complete economic unity among its member states. An intermediate objective of [[customs union]] has been set for 2015.<ref name=Dailystar/>
#[[Economic Cooperation Organization]]: Established in 1985. The common objective is to establish a single market for goods and services in [[West Asia]], like the European Union.
#[[U.S.–Middle East Free Trade Area]]: Established in 2003 by the United States, this aimed to gradually increase trade and investment in the Middle East by assisting countries to implement domestic reforms and protecting private [[property rights]].
#[[Euro-Mediterranean free trade area]]: The initial aim is to create a matrix of [[Free Trade Agreement]]s. The next step would be a single free trade area of 600–800&nbsp;million people, including, eventually, the [[European Union]].

===Challenges and opportunities===
*[[Governance]]: Good governance attracts capital. Some Middle Eastern countries such as [[Saudi Arabia]] have made positive steps in reforming their [[judicial system]]s or adapting their [[capital market]] laws to international standards. Building efficient and capable public institutions needs to be a priority.
*Raise competitiveness levels of these economies. This can be achieved through overhauling and aggressively investing in the region's education system. If the education policies of the region deliver unwanted skills to the market, international investors will not be keen to come in, especially in the services sector. [[Unemployment]] runs as high as 40% in at least seven Arab nations.<ref name=Dailystar>((cite web|url=http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=111673 |title=Business Articles - Arabs urged to speed up economic integration |publisher=The Daily Star |date=2010-02-12 |access-date=2010-02-25))</ref> [[Social investing]] should be planned in order to produce more [[entrepreneurship|entrepreneurs]], engineers, scientists, and [[MBA]] graduates and expand the [[middle class]].
*Raising competitiveness also entails accelerating the [[privatization]] programs, trade liberalization, investing in the [[infrastructure]], deepening and linking capital markets and uprooting [[corruption]].
*Facilitate the usage and penetration of [[new technologies]]. This would enhance the free flow of ideas, information and harness the forces of entrepreneurship. New technologies spur innovation and increase productivity which investors seek. 
*Linked to this is increasing the freedom of the press and media which provides checks and balances against governments and business. New technology and freedom of the press would have a particular impact on youth and would encourage participation in the definition of future strategies at national and regional levels. Cooperation among Middle Eastern countries would be enhanced, advancing towards the knowledge economy. Increasing the use of new technologies would also reduce bureaucratic hurdles often cited by businesses as deterrents to investment.
*Covid-19: The World Bank has highlighted the pivotal role of trade and regional integration in driving economic recovery in the Middle East and North Africa (MENA) region post-COVID-19. This approach aims to address the economic fallout, including job losses and livelihood deterioration, exacerbated by the pandemic.<ref>((Cite web |title=MENA: Trade and Regional Integration are Critical to Economic Recovery in the Post-Covid Era |url=https://www.worldbank.org/en/news/press-release/2020/10/19/mena-trade-and-regional-integration-are-critical-to-economic-recovery-in-the-post-covid-era |access-date=2024-03-25 |website=World Bank |language=en))</ref> By fostering closer economic ties and removing trade barriers within the region, MENA countries can unlock new growth opportunities, enhance competitiveness, and attract investment, ultimately leading to sustainable economic development and improved living standards across the region.<ref>((Cite web |title=MENA Economic Update: Trading Together — Reviving Middle East and North Africa Regional Integration in the Post-COVID Era |url=https://www.worldbank.org/en/region/mena/publication/mena-economic-update-trading-together-reviving-middle-east-and-north-africa-regional-integration-in-the-post-covid-era |access-date=2024-03-25 |website=World Bank |language=en))</ref><ref>((Cite web |title=Designing a Roadmap to Recovery |url=https://www.oecd.org/mena/competitiveness/Government-Business-Summit-Conclusions-2021.pdf))</ref>

==See also==
((portal|Economy))
((Israeli–Palestinian peace process))

((div col|colwidth=30em))
*[[African Economic Community]]
*[[Arab Cooperation Council]]
*[[Arab Maghreb Union]]
*[[Arab Union]]
*[[Cooperation Council for the Arab States of the Gulf]]
*[[Council of Arab Economic Unity]]
*[[Economic integration]]
*[[Economy of the Arab League]]
*[[Economy of the Middle East]]
*[[Economy of the Organisation of Islamic Cooperation]]
*[[Euro-Mediterranean free trade area]]
*[[List of free trade agreements]]
*[[List of Trade blocs]]
*[[Middle East and globalization]]
*[[Middle East Economic Association]]
*[[Pan-Arabism]]
*[[Pan-Islamism]]
*[[South-South Cooperation]]
*[[U.S.–Middle East Free Trade Area]]
((div col end))

==References==
<references/>

==External links==
*[https://www.fmprc.gov.cn/mfa_eng/gjhdq_665435/dqzzywt_665451/2633_665453/2634_665455/t15530.shtml Middle East/North Africa Economic Summit]
*[http://www.al-monitor.com/pulse/home.html Pulse of the Middle East] - [[Al-Monitor]]
*[https://web.archive.org/web/20090727093258/http://www.menareport.com/en/business/ MENA Report] 
*[https://books.google.com/books?id=xPjmC7r1wIYC Trade policy and economic integration in the Middle East and North Africa] By Hassan Hakimian, Jeffrey B. Nugent (2001)
*[http://www.smi.uib.no/pao/zineldin.html Globalisation and economic integration among Arab countries] (1998)
*[http://meria.idc.ac.il/journal/2006/issue3/jv10no3a4.html The "new Middle East" from the perspective of the old Middle East]
*[http://www.payvand.com/news/10/jan/1220.html 2010 Economic Prospects for the Middle East and North Africa Region] - [[World Bank]]
;Videos
*[https://www.youtube.com/watch?v=7sBET7VUE-g Vali Nasr - Rise of Muslim Middle Class]

((Economic integration))
[[Category:Economic integration]]
[[Category:Economy of the Middle East|Integration]]
[[Category:Liberalism in the Middle East|Economic integration]]
[[Category:Middle East|Economic integration]]
[[Category:Middle East peace efforts|Economic integration]]
[[Category:Neoliberalism]]

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