Would the Saudi Arabian, Iranian, UAE etc...economies collapse if there was no oil (or gas) in the Middle East

Answer 1

You would certainly see a change in life style.

A lot of the politics in the middle east is based on the power that those countries wield due to their control of their oil reserves. Remove those reserves and everything changes. Yes, the economy would collapse because their monetary system is not based on a gold reserve but an oil reserve. Remove the reserve and the monetary system is in trouble.

Would there be any tourism? It would be limited as how many tourists would risk the fundamentalists? So, the national gross income would plummet. The monetary system collapse and prices rapidly deflate as no one would have anything to spend.

The whole economy of the region is based on oil. Remove the oil and you remove the economy.

Answer 2

Dubai is currently building itself to be a financial centre, though on the scale they want it, I have doubts. Saudi Arabia has the holy sites so there's always tourism. Iraq, if ever they remove themselves from the destructive mode they're in, could capitalise on the many historic sites in the country for tourism. Iran could do the same. But I don't think the same levels of financial security could be reached on those alone if the oil dried up. I also don't think it would be a complete collapse. Some countries in question, such as the U.A.E. have been squirreling away their funds for some time now.

Answer 3

Economies don't "collapse", but you will see a considerably different Middle East. Without oil revenue and a sustainable industry incomes will plummet. The oil rich Gulf states have no innovation, no labour force (all the work is provided by expats), no agriculture, no mining...fortunately the UAE is smart enough to prepare for the day oil will run out, and is diversifying its economy.

However as oil supply runs out, prices will rise, so incomes will remain constant.

Answer 4

Good question. -

As long as greedy businessmen can continue to milk the "Oil production, and possibly shortage, etc. for all it is worth their economies will get along just fine!

What a lot of people do not realize is that one of the greatest Arabian myths and biggest pieces of propaganda about "Oil" is that some day it will run out!

Quite the contrary! It won't! Oil is actually being produced as we speak by the earth's tetonic plates as they move, heat, and pressure that is being exerted that exists internally all around the globe.

This propaganda keeps the oil prices high so that the oil producing countries can grow richer off their oil.

Lo Siento!

Answer 5

Some years ago the answer would have been yes. We have moved on a bit, don't forget that if you watch a movie you see something funded via UAE. the amount of money that is floating around in the countries that you asked about will have a great influence in future dealings as we are still depended on OIL Produce. somethig to think about is that your bar of soap is a result of the same

Answer 6

These countries economies depend on these natural resources. but they still would be able to have a stable economy because of tourism and other natural products. For example Saudi Arabia has Mekka, the holy city of the Muslims, Iran, again tourism and UAE has Dubai. But they won't be making what they used to.

Answer 7

If oil did not exist in the Middle East, there would be less of a problem. We would not have been fighting endless wars in the region - now on-going since before the end of the 19th century.

The Middle East is a war zone and will continue to be one so long as it has oil.

And so it goes.

Answer 8

No. If there was no oil in the Middle East, they would have not based their economies on it in the first place.

Answer 9

They wouldn´t collapse. Some would establish a tourist industry instead like in Dubai. Those economies would have been shrinking.

but ... no oil no war. They won´t find any protectors

Answer 10

Yes