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Non-Hydrocarbon Minerals as Strategic Resources in the MENA Region
Abstract
The importance of oil and gas for MENA countries, their states, economies and international relations is well documented in the academic literature. Oil rents are crucial in financing many of the region’s states either directly or indirectly via aid and migrant remittances. Natural gas has developed into a central pillar of rapidly growing domestic energy consumption and efforts at economic diversification. The region’s food import dependence also emerged as a strategic concern in the wake of the global food crisis of 2008 as it imports about a third of globally trade cereals. Prices for non-hydrocarbon minerals (NHM) like aluminum, iron ore or copper did rise during the commodity boom of the 2000s as well and globally strategic interests were raised. Large importers of raw materials like China, Germany, or the US pondered the need to secure supplies via investments, storage and trade policies. Some exporters tried to take advantage of market dominating positions. China implemented export restrictions for Rare Earth Minerals and iron ore producers were successful in pushing for higher prices in an oligopolistic and intransparent market. In contrast to their prominence in global energy and food markets, MENA countries do not seem to figure in the global geo-economics of NHM, neither as large importers nor as large exporters. Yet, some countries either have substantial production and exports in key minerals or they have import needs of feedstock that they try to secure via strategic policies. Morocco for example has a whopping three quarters of global phosphate reserves after the recent reserve revision by the USGS and Gulf countries try to secure their import needs for iron ore and alumina via foreign direct investments in Africa and India. The paper is based on available literature and statistics, grey material and interviews with executives in the respective natural resources sectors. It outlines countries and minerals in the MENA region that play a role in the global geo-economics of NHM and takes a look at key actors from the public and private sectors. It compares the strategies that the various countries have adopted and analyzes how this manifested itself in policies, development plans, mining codes and institution building. It also takes a look at the social and environmental problems that are often associated with mining operations. The focus is on Saudi Arabia and other Gulf countries, Morocco, Iran and Turkey.
Discipline
Economics
Geographic Area
All Middle East
Sub Area
Political Economy