If you were to look back through modern history, the economies in the Middle East and North Africa (MENA) have lagged behind their western rivals. The same applies to the geopolitical climate in this region, which has served as a platform for erratic policy and immense volatility over the course of the last 25 years or more.
Incredibly, we’ve seen this trend begin to reverse in recent times, as the more established economies of America, UK and Europe have imploded while those in the Middle East have started to thrive and diversify with sustained success.
In this post, we’ll ask how this has happened, and try to determine whether or not MENA can continue to benefit from turmoil in the western world.
How has the Landscape Changed in Recent Times?
The plight of western economies has been pronounced in recent times, and exacerbated by a combination of bad judgement and opportunism. The U.S. has been undermined by an increasingly aggressive foreign policy and the election of a decisive, populist President, for example, while the UK’s push to leave the EU has triggered widespread uncertainty and volatility throughout an entire continent.
In Asia, Myanmar’s security forces have been accused of committing acts of genocide against the Rohingya Muslim minority, with charges of ethnic cleansing likely to be levied by the United Nations.
Given this and the wave of extremist terrorism that has enveloped the western world in recent times, it’s clear that the geopolitical and economic climate outside of the Middle East is becoming increasingly turbulent.
These issues have become increasingly stark in the wake of significant developments in MENA economies, which has created a genuine platform for growth and prosperity within the region. In fact, the Middle East in particular is looking more stable than at any point in recent times, both from an economic perspective and a social one.
In terms of economy, most Middle East nations and the gulf states are working hard to diversify their interests. More specifically, they’ve pulled away from an over reliance on oil after this commodity has seen its value plunge due to an excess of supply, instead focusing on media, tourism and financial services. The region is also entering the fascinating world of cryptocurrency, while its stocks and currencies are being actively targeted by foreign investors from across the globe.
Will this Trend Continue, and how Can you Benefit?
Not only are these facts incontrovertible, but they’re also supported by social and political developments within the MENA regions. Saudi Arabia is also working to build a positive human rights record, while it’s also fair to surmise that Iraq and Iran have enjoyed a period of relative peace since the U.S. withdrew its troops from the former.
This draws a link between the actions of western nations and their impact on Middle Eastern economies, and history suggests that the trend for growth in MENA is likely to continue if the region is allowed to pursue its own path towards growth and prosperity.
From an investor perspective, this reversal of fortunes offers immense opportunities. This is particularly relevant in the case of derivatives and flexible vehicles such as cfd trading, as they enable investors to speculate on outcomes and profit from even short-term growth in the Middle East.
So, in addition for being exciting times for all MENA nations, this is also an excellent opportunity for investors to diversify their portfolios and boost their profits.