Economy of Southwest Asia
• Oil was discovered in Iran
in 1908. It is now the
most important product in
the region’s economy.
• Nearly half of the world’s
oil is in Saudi Arabia,
Iran, Kuwait, and Iraq.
• Saudi Arabia is the
world’s largest producer
and one of the largest
exporters to the U.S.
• Most are nationalized or
government run.
Oil
In 1960, many of the oil producing nations (Iran, Iraq, Saudi
Arabia, Kuwait, and Venezuela) agreed to form a cartel. A
cartel is an international organization formed to regulate prices
and production. The cartel, called OPEC (Organization of
Petroleum Exporting Countries) placed an embargo on
exporting oil to countries that supported Israel which increased
prices by 70% in 1973. American gasoline prices more than
doubled and people waited for gasoline in lines sometimes
over a mile long. Oil remains crucial to the entire developed
world. This fact gives OPEC nations enormous power.
Oil has changed the Middle East and North Africa. Many
leaders in the region have used the wealth from oil to
modernize their nations, while others kept the wealth or used it
to buy weapons and build armies. Petroleum is a nonrenewable resource, so oil-producing nations must prepare for
a time when their petroleum wealth no longer exists. Experts
believe that the price of oil will continue to rise as supplies are
used up in easily accessible areas. The world will likely
prepare for the exhaustion of petroleum reserves by switching
to other sources of energy.
Primary Products
(raw materials)
• Most important in the
region is oil
(petroleum)
• Most exports of the
region are primary
products
• Other primary
products include
cotton, fish, natural
gas, and coal
Secondary Products
(goods manufactured from primary
• Goods from date
palms include
products)
– syrup
– paper from palm
leaves
• Petrochemicals from
oil and natural gas
are used in
–
–
–
–
Cosmetics
Plastics
Detergents
fertilizers
Religion in the Region
• Islam is the major religion in the
region and therefore exerts a
tremendous influence upon the
culture of the region
• Islam’s influence on the culture of
the region includes:
– People stop to pray five times a day
– Many travel to Mecca on a hajj
– During Ramadan they fast from
sunrise to sunset. This causes
economic activity to drop because it’s
hard to work when you’re hungry.
– Different calendar
• 12 months of 29 days (each year is 11
days shorter than western calendar)
• Days start at sunset
Westernization vs. Traditional
Culture
• Some feel that there is
too much western
influence over traditional
Islamic culture
• Some feel westernization
provides a higher
standard of living and an
easier lifestyle and thus
welcome fast-food
restaurants, T-shirts,
television, rap music, and
technology
Roles of Women
• Different in different countries of
the region
– Israel, Jordan, Egypt
• Well educated
• Hold important positions in business,
politics, military
– Iran and Afganhistan
•
•
•
•
fewer rights than men
must be with a man at gatherings
forbidden to drive cars
one husband while men can have up to 4
wives
• few work outside the home
Saudi Arabia: Sexsegregated
sidewalks
Clothing and Culture
• Israel
– some wear western
fashions
– Orthodox women dress
modestly; men wear black
suits, hats, and long
ringlets of hair in front of
their ears
• Islamic countries
– Iran and Saudi Arabia
require women to wear
chadors covering their hair.
Men dress and grow facial
hair according to Islamic
law
– Jordan Turkey and Egypt
allow women to wear what
they choose
Quiz-True or False
1. All of the world’s oil is found in Southwest Asia
and north Africa.
2. Saudi Arabia is the world’s largest oilproducing country.
3. OPEC was formed by four countries in
Southwest Asia.
4. OPEC is powerful because the world is
dependent on oil.
5. Oil is the most important secondary product in
Southwest Asia and North Africa.
Quiz continued
6. The dominant religion in Southwest Asia
and North Africa is Islam.
7. Muslims fast during Ramadan.
8. All people in Southwest Asia and North
Africa welcome westernization.
9. Women in Iran have equal rights with
men.
10. Many Islamic countries still require
women to wear chadors.