Arab economic integration, access road to self sufficiency.



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In the shadow of the enjoyment of the Arab natural resources, financial and human, both in terms of their diversity or quantity and geographical unit in the area of strategic position between East and West, comprising a common history and language, which can become a great economic power play an important role in The global economy, the economic integration between them.

And economic integration to NI to provide other State lacking elements needed to strengthen their economic production process and may be the relationship in this context, as in the case of economic blocs and alliances between developed countries, such as Western European or other Equal, as shown in the case of the integration between developed nations and developing nations pushing forward economic integration relationships, whether institutional, or agreements, or joint investment and trade relations.

And the process of voluntary exchange between two or more States, including some commonalities, including geographical proximity, and top national and religious affiliation, so whereby States — by removing barriers to trade and the movement of factors of production, including labour and capital The money.


And the topic of Arab economic integration in a privileged position in the Arabic nation interests since the end of World War II, it started with the Arabic League in 1944 with the seven States then independent: Egypt, Iraq, Jordan, Syria, Lebanon, Saudi Arabia, Yemen, and further yet.

So join the rest of the Arabic countries, where the Charter of university cooperation of participating States cooperate closely in Economic Affairs, reflecting the interest in Arab regional cooperation before achieved at the global level, and of the Arab economic integration:

• Natural resources:

Arab economic resources has a wide variety of agricultural and industrial levels. The Arab world extends over an area of about 14 million km2, within this large area climate varies topography and soil types and multiple water sources that about 370 billion m3 exploits currently about 175 billion cubic meters.

As a result of multiple and diverse crops, mineral and energy resources from oil to gas and renewable energy sources such as wind and heat.

The Arab nation can for abundance and diversity of these resources to achieve economic integration is helpful to provide funds necessary to discover available resources and investment, uninvested, or achieving an appropriate qualitative and quantitative investment of resources invested.

• The strategic location of the Arab world, as a medium between three continents: Asia, Africa and Europe, and also overlooks most of the world's seas and oceans, and the terrain of the Arab world geography with sailor and water catchment allows generate electric potential is enormous.

• The availability of human resources in the Arab world, statistics show that the total population of the Arab world about 370 million people, a sufficient number of Arabic region development subjectively, and this edition carries out an important condition of successful investing conditions a minimum manpower

• Large capital, due to oil revenues, these funds have contributed so far in the Arabic region development because most are geared towards investing in developed countries in the United States, the Foundation «RAND» America a report which estimated Arabic deposits in American banks alone By about $700 billion, and pegged Arabic investments in the United States by about 680 billion dollars, the report indicates that the proportion of Arabic funds invested in America are around $12, 8% of the total funds invested in the Arabic world, while Europe acquires 34, 6% of the total funds Arabic investing abroad in 1988.

According to estimates by the RAND Corporation economic funds Arabic in Europe will reach 1844 billion dollars, Arabic funds invested in far East countries amounted to 822 billion dollars. According to the Arabic Bank Union statistics currently 4550 banks and branches throughout the Arab world, and these deals total Arabic banks about 350 billion dollars.

And another report estimated value of deposits and investments Arabic in Europe and America in early 1988 to about 350 billion dollars, of which about 200 billion dollars of deposits and Arab investments, about $150 billion of deposits and Arab investments for individuals and corporations Arabic.

Economists noted that assets in overseas financial Arabic 670 billion dollars exceeded 200 billion dollars for fiscal deficit Arabic States, as Arabic debt 200 billion dollars, meaning that the Arab world creditor of the world banking system by about 470 billion Dollars.

And Arabic investments in foreign countries compared to Arabic countries, Arabic investment guarantee institution said in its annual report that investment projects in Arabic countries total 2170 project until the end of 1988 m inter capital paid $19, $7 billion contributed to Arabic countries Where the amount of $9.9 billion dollars or 50, 2% of the capital and the rest foreign countries, the report says that these investments cannot be compared with the volume of investment capital States Arabic but Arabic States funding up to one project in Western countries to half Arabic country investments All Arabic

Experts emphasized the economy, politics, having $50% of funds invested in Arabic Arabic States an employee in a small number of projects under the AMU Heads project 2135 for 50 million dollars and $15, 9% of which 22 projects ranging between 50 to 100 million capital and $23, 2% in 13 projects increase AMOA headers On 100 million dollars.

And between the National Planning Institute expert the doctor Mohammed Ahmed Mustafa that oil revenue surpluses Arabic invested in Western Europe and the United States up to the end of 1985 about 600 billion dollars while the volume of investment of the Arab Arabic not exceeding 12 billion Dollars, a one to fifty.

With a common industrial and non-industrial ventures between Saudi Arabia and the Arab and foreign countries until the end of January 1990, 1462 projects where the total amount invested $59 billion riyals, explained statistic issued by the Saudi Ministry of industry and electricity and Middle East newspaper That the number of projects with Arabic countries reached 430 total project investment of $11.8 billion riyals and United States reached 186 12 investment projects totaled 3 billion riyals, the figure amongst the value of joint ventures between Saudi Arabia and Arabic States.

Dr Huda Tawfiq Azzam noted that 13% of Gulf investments in foreign market America and 4% in the British market and 20% in other European countries and 18% in the Member States of the Organization for economic cooperation and development, particularly Japan and Southeast Asian financial centres and the rest between distributor Offshore centres by 11% and 13%, the International Monetary Fund and the World Bank, and total foreign investment of public and private sectors in countries of the Gulf Cooperation Council 432 billion dollars.

Dubai Chamber of Commerce stated in her report that the volume of trade cooperation between the GCC countries and the EC reported $25 billion dollars in 1988.

Arab economic research provide approximate figures say that the amount of money invested in Arabic America exceeds $1 trillion, while other bodies the size of funds migrating abroad Gulf towards $1 $4 trillion, including $750 billion, about $450 billion invested in United States and 255 billion in Europe. It has already been mentioned Arabic investment guarantee Corporation in Kuwait in a report in late 2004 m before doubled the oil money do high oil prices that volume Arabic wealth abroad totalled approximately $1 $4 trillion, which counted the proceeds those funds to benefit States that invest in them.

• Arabic market breadth, which extends from the Gulf to the Pacific Ocean, where every economic criteria that make them a market model, this market includes more than 370 million consumers and is what allows the large projects and increased production and thus raise the standard of living of the individual in the Arab world.• Increasing the share of Arabic States of crude oil and natural gas.

Where you have about 1, 73% of the world's crude oil, produces about 5, 38% of the global production of oil is one of the most important Arabic States exports as it has around 7, 39% of world reserves of natural gas.Added to the previous ingredients, Arabic States speak one language, and most of them embrace Islam, these ingredients can play an important role in activating Arab economic integration.

Economic integration

Economic integration is the highest stages of economic integration, which is the coordination of economic policies, creating a kind of Division of labour between the countries concerned, and generally starts joint trade agreements economic integration or reducing tariffs on products from both countries or countries involved in these Examples of relationship and economic cooperation among the GCC countries.

• Trade and economic relations between the GCC and Western countries than it is between them and the countries of the Middle East and North Africa.

This is due to the limited Arab production and therefore need oil and non-oil States in the region to more exchanges with the outside area.

• Non-oil investments in Arabic countries remain in most Gulf investments and therefore remains an important integration reality, albeit not enough, majority of Gulf investments go outside the region because stability in America and Europe and not available here.

The aim of the GCC countries to diversify their economies which mitigate the dependence on hydrocarbons to finance state services, all this progress but not enough to raise the economic level befitting of Arabic States.

• GCC common investment projects are necessary but in any sector? Limited opportunities in agriculture because of land and water and weather factors note that there is an excellent agricultural production but expensive, basic technological production opportunities lie where existing funds and experience, it is also possible to import some foreign experiences from Asia and elsewhere and thus create a kind of Biotechnological area resembling «» Silicon Valley in California, there is potential to promote tourism in all States including Saudi Arabia visa facilitation condition and quality of nature as the necessary infrastructure development, there are many missed opportunities in the region, but the emerging awareness today gives hope In the future.

And successful experience of economic integration and a condition of success:

One of the most important experiences of regional economic integration in our modern world, the European Union, which began with coal and steel Convention in the 1950s of the 20th century, under what arrangements after the second world war, and the reconstruction of war-torn Europe. Economic integration was then one of the most important tools used to remove the hostile situation between various war parties in Western Europe.

The similarity of economic structures and policies and regulations for participating countries, an important role for successful integration, there can be no successful economic integration experience between countries of the capitalist free market economy mechanisms depend, among the countries of socialist market-oriented policies.

And there must be a minimum of economic strength among the different States, where strong integrated economic structures between States, the complementary relationship to exploit weaker stronger.

The most prominent vulnerabilities to the integral political will among Arabs, poor Arabic League Charter, so that didn't give her effective role to participate in Arab economic integration, as the experience of the European Union who arrived at the idea of fusion between unity, after removing restrictions Border and currency in the 1990s.

Failure comes in Arab economic integration, or at least a successful experience, stable and functioning of regional economic integration between the Arabic countries, although the ingredients that combines Arabic countries, which ensure such success, much larger than those of the Europeans.

Impediments to Arab economic integration:

You can confine causes of failure of economic integration in three groups Chairperson: economic reasons, political and regulatory:

1. economic reasons: the control type or the first production style Arabic economies and scant manufacturing or final industries that depend on the value added to the product, and the varying rates of production requirements between Arabic countries members of conventions led to a member resort Protect high-cost industries through deregulation, and not paying attention to the road and air transport and maritime parts of the Arab world, different economic systems and policies, and entry level variation between countries.

2. political reasons: fear of encroachment on the sovereignty of the country and the political crisis of confidence between some Arabic countries.

3. regulatory legal issues: the lack of conventions between the Arabic countries to accuracy in target identification and drawing means, lack of data and statistics on the various economic activities in Arabic countries, leaving room for each State in the freedom of their own agreements with other countries even if it conflicted with Interests of other Arabic countries agreements or Arabic League Charter, duplication of functions carried out by the organs and organizations that oversee the joint Arab action.

To revive the Arab economic integration we need to:

Renewed calls for revival of Arab economic integration by establishing common Arabic market as representing an Arab block to face new global changes for Arabic States find a privileged place her beside global conglomerates, here are some suggestions to revive this project:


1. intensifying interest official Arab Arabic States linking the railway networks, and movement of Arab Transport Ministers to push for building economic and social benefits for many countries in the Arab world.

To the importance of the role of transport and transport in country and regional economic growth, the area is one of the very few areas Arabic does not have this kind of linkage between its actually, or even at least between two of its trains, for example, is one of the most important means of transportation between European countries, and did not stand Sea barrier to develop this kind of linking its, the tunnel link between Britain and France under the English channel, forming a vital lifeline for transport between the island of Britain and the European continent.

2. optimal utilization of resources owned by the Arab world and the distribution of investment in industrial projects between Arabic countries according to the competitive advantage of each State.

3. the expansion and flexibility in investment rules to facilitate the movement of capital, employment within the Arab world, which means more production and increase income and improve the living standards of the community in the Arab world.

4. increase the bilateral trade volume between Arabic countries and the breadth of the Arab Arabic products market.

To iron out obstacles in Arab integration:

Coordination between the economic policies applied by every Arab State and economic policies aimed at achieving the goals of Arabic economic blocs, coordination between Arab economic bloc is minimized and overall economic bloc so that there is no contradiction between them.

And to increase the volume of bilateral trade between Arabic countries and give preference to Arabic markets in Arabic products marketing.

Walhava on every Arab State entity within the Arabic economic blocs, and attention to provide Arabic organs and institutions to implement the Arab economic cooperation programmes to reach effective economic bloc, and provide complementary dimension between Arabic and attempts to economics Reduce competitiveness among economies Arabic.

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