Middle East Economic Survey
VOL. L
No 43
22-
PUBLISHER’S STATEMENT
MEES: The Next 50 Years
By Saleh Jallad
During the last 50 years, the world experienced a mixture of pleasant as well as miserable economic, political and physical changes. Population explosion, political upheavals, regional wars and atrocities, terrorism, exhaustion of primary resources, famine and floods, and the ozone and other environmental potential catastrophes are only a few negative aspects of that period.
Simultaneously, economic growth and development, industrial innovation and creativity, enhancements in health and education, improvement in the quality of life of individuals and societies, positive revolution in the information technology, the rise of multinational companies and giant conglomerates; globalization and many other elements developed in the same space and time with equal vigor and intensity.
From the above, two primary common factors can be traced, namely: energy and finance; the infrastructure and the superstructure. These are the bloodline of the past, present and future of human activity. Consequently their role has been vital in the daily life of individuals, organizations, and nations, as well as the physical resources and environment with which such entities interact. The exploitation of resources to produce the goods and services meant to satisfy human needs and aspirations has been fundamental to human beings since the beginning of time.
The fact that MEES has been a prime vehicle of information regarding the dynamics of energy and finance in the Middle East since its inception on 19 November 1957, half a century ago, is not surprising. MEES prides itself in assuming a leading role in delivering to the satisfaction of all its subscribers, prompt and useful in-depth analysis of the vibrant implications of Middle East energy issues and their regional and international ramifications. The management and editorial team of MEES has always carried its responsibility with utmost journalistic professionalism and integrity, thus establishing a mutually strong bond between MEES and its subscribers; a tradition MEES will always cherish and continue to cling to.
Bright Middle East Energy Future
In our judgment, the future of the hydrocarbon energy resources in the Middle East, including Iran, is still bright. The region is the home of approximately 71% of the world’s known oil reserves, as well as more than 40% of its gas reserves. Moreover, it is also home to ample but untapped solar and wind renewable and alternative resources. With globalization as a fait accompli, interdependency between the Middle East and the rest of the world becomes even more critical than any time before.
In addition, the financial and human resources in the region are increasing at almost geometric rates with further consequences on world economic and political dynamics. The construction boom that is a characteristic of the region is expected to continue for years to come. Expenditure on the energy industry, whether regarding the rehabilitation of existing onshore and offshore facilities, transportation or new facilities, demands massive financial and technical resources. Our analysis shows that scores of billions of dollars are expected to be disbursed on oil and gas within the coming five years.
Today the population in the Middle East region, including Iran, is approximately 400mn. At a 3% rate of growth it will surpass 500mn over the coming eight years and 600mn by 2021. It is worth noting that more than 60% are below 24 years old. This requires enormous allocation of financial resources to projects whose objective is to alleviate future infrastructure pressure.
Financial intermediation through international, regional and local institutions is therefore expected to adjust to the challenges. As has always been the case, they will adjust to the new realities and formulate efficient solutions while facilitating the flow of funds within a most intensely regulated industry.
Maintaining MEES Objectives
The environment surrounding the oil and gas industry, coupled with the financial implications, present MEES with the extra challenge of maintaining its standards of providing its subscribers with the analytical products that support their planning horizons’ profitability objectives. Our goal therefore for the next decade is to maintain the most credible and useful information on the energy sector of the Middle East, and its interaction with other sectors in the micro- and macro-economies of the region and the world, including the ensuing political ramifications and the risks involved. However not withstanding that, the analysis of the vital financial superstructure in the region and elsewhere will be an intrinsic part of the delivery objectives of MEES.
As in the past, MEES will maintain its policy of attracting some of the most specialized experts and editorial teams in the information business, providing credible and objective analysis to its subscribers in all the media methods available in the market to the satisfaction of our sponsors. This is supported by the most friendly IT activities, by the most renowned editors and the most complete archives of 50 years of oil and gas and economic data on the Middle East available in the market anywhere in the world. The wealth of intelligence MEES offers to its subscribers is truly unsurpassed. MEES’ professional team, more than that in any other organization, commands the languages and has a deep understanding of the region’s mores, customs and social habits. Consequently its relative comparative advantage regarding the Middle East oil and gas industry and its interaction with economic and political ramifications, regional and international, remains an outstanding feature of MEES. We are committed to maintaining this comparative advantage of MEES in the region in order to meet the evolving requirements of its subscribers.