The Middle East economies depend entirely on oil. Oil revenue constitutes about 80% of the GDP in the region (Akiner, & Aldis, 2004). The governments of the Middle East countries depend on oil revenue to import basic commodities such as food. Syria, Egypt, and Iran are some of the countries in the region that produce their own food.
Due to the environmental effects caused by fossil fuels, the world is searching for alternative sources of energy. The escalating global oil prices also indicate the unsustainability of oil as the main source of energy for global economies (Akiner, & Aldis, 2004). In addition, most economies are considering using alternative sources of energy such as solar, wind and nuclear energy to minimize the revenues spent on oil. For instance, the US consumes about 60% of the total. America import 80% of its oil from Africa and the Middle East. Despite this demand, America is considering other alternative sources of energy in order to attain energy security. The country is investing in other renewable energy such as bio fuels and solar energy to reduce dependence on oil. Other upcoming economies such as China and India have become major oil consumers. However, the upcoming economies are keen about renewable sources of energy. This indicates that the future of oil is unclear since there is likelihood that people will stop using oil in the near future.
The Middle East holds 66% of the total global oil reserves. This has a similar implication on the Middle East economies. Thus, the future of the Middle East depends on the industrialized world economies. The on-going efforts to reduce oil dependency in industrialized countries will have significant impacts on Middle East economies. The Middle East economies are likely to reduce significantly according to the rate of oil consumption (Mabro, 2007). However, due to the massive oil wealth in the region, Middle East countries will not experience a rapid economic decline.