ABSTRACT
This chapter explores that the fragmented regional markets in goods and services have not only made the vision of a more politically unified Middle East and North Africa region more difficult to achieve but also hurt its global integration. It assesses the extent of regional and global integration that has been achieved by the region in terms of trade in goods and services, looks at how oil markets operate. Oil prices are affected by long-term trends in both production and consumption, as well as by short-term shocks and imbalances that can have large effects on prices. The chapter examines the role of capital and labor movements in integration. The labor migration can be seen as the main way in which oil revenues from the oil-exporting countries have been redistributed to the oil-importing countries, to the great benefit of millions of households.
