ABSTRACT
For the last sixty years oil has been of major significance for the economies of the Middle East. The region has almost one-half of the world’s oil reserves and around one-quarter of global supplies of natural gas.1 Middle East oil has been a periodic preoccupation for western governments and business, especially during the dramatic 1973-4 and 1979 oil price rises, as these had a major impact on the world economy. Within the region itself, oil production has accounted for a substantial proportion of national product and been the major source of government finance. The earnings generated from oil have not only contributed to development funding in the oil-exporting states but have also flowed into the non-oil economies through inter-government assistance, remittances and, to a lesser extent, private investment flows.
