Transcript The Middle East Cradle of Culture and Center of Conflict

Economy of the
middle east
Trade has been important in the region since
ancient times.
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Sea lanes are the most important trade routes
in the region.
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Countries as ranked by GDP
#4 Israel
#1 Kuwait
#3 Qatar
Qatar
#2 United Arab Emirates
Economic Characteristics
• Heavy reliance on primary economic
activity
• Oil drilling
• Agriculture: nomadic herding (pastoralism)
Bedouin shepherd with
sheep.
The Bedouin are a nomadic tribe that live and
herd in the Arabian Desert and North Africa.
Def. -- of or pertaining to
shepherds or herders.
The Bedouin are a nomadic tribe that live and
herd in the Arabian Desert and North Africa.
Economic Characteristics
The Nile delta has fertile farmland.
Economic Characteristics
Cotton is an important product in the Nile
River Valley in Egypt.
Economic Characteristics
Egyptian cotton is known for high quality.
Economic Characteristics
Oil revenues: positive and negative effects
Positive: High revenues
Negative: Over reliance on one product.
Organization of Petroleum Exporting Countries
Organization of Petroleum Exporting Countries
An international organization made up of Iraq,
Indonesia, Iran, Kuwait, Libya, Angola,
Algeria, Nigeria, Qatar, Saudi Arabia, the
United Arab Emirates, and Venezuela.
An international organization made up of Iraq,
Indonesia, Iran, Kuwait, Libya, Angola,
Algeria, Nigeria, Qatar, Saudi Arabia, the
United Arab Emirates, and Venezuela.
OPEC is a cartel, a group of producers of the
same product that act together to control the
market by regulating production.
Since OPEC countries produce so much oil, they can
control the world market and price.
If the price of oil begins to decrease, what do OPEC
nations do in response?
Water: the region’s most
precious resource. Why?
Water: the region’s most precious resource.
The Ashkelon Desalination Plant in Israel provides for 13%
of the country’s domestic water demand.
Water: the region’s most precious resource.
The Jebel Ali plant in Dubai is the largest desalination
facility in the world.
Great variation in quality of life: ranging
from relatively high to poverty stricken.
Regional conflicts, political unrest that
affects the tourism industry.
3.5 million people visit
Israel every year. 2.4 million
travel there for “Christian
tourism.”
Regional conflicts, political unrest that
affects the tourism industry.
A Palestinian boy holds a toy gun and wears a mask while
pretending to shoot at U.S. tourists on a street in Jerusalem’s
old town. August 18, 2006. (REUTERS NEWS SERVICE)
There are more jobs than
workers in some areas of
the Middle East.
Guest workers from other
parts of the world (mainly
India and Pakistan) are
hired to do many jobs.
Guest workers often live in poor
conditions in the midst of wealth.
Guest workers in Dubai.
Interpret this cartoon.
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Aswan High Dam
Aswan Power Station
Aswan Power Station
“That’s one
high dam!”
Benefits
• Flood control
• Water for irrigation
• Fishing industry
• Generating electricity
Negative Effects
• 90,000 people displaced by
Lake Nasser.
•Silt is building up behind dam
and not deposited in river plain.
• Poor irrigation practices are
ruining soil fertility.
• Nutrients for Mediterranean
fish are not reaching the sea.
• Damage to river delta.
• Antiquities covered by water.
Economy of the middle east
Summary
1. Trade
2. Pastoralism
3. Agriculture
4. Importance of oil
5. Water
6. OPEC
7. Quality of life
8. Tourism industry
9. Guest workers
10. Aswan High Dam