CHAPTER 7

THE MIDDLE EAST AND NORTH AFRICA (MENA)

The Big Picture
The region has oil- based civilization and MENA is of strategic importance in the world
economy and geopolitics because of its vast oil resources and its location: it is at the
crossroads of Europe, Asia, and Africa. As a region at the crossroads it has served as an
invasion corridor for armies of empires and powerful countries in the past. It is the birth-place
of major religions and has become the nexus of the trade routes especially between Europe
and Asia. The history also provides the context for the age- old conflicts and tensions that
continues to the present day and constitute a major challenge of doing business in the region.
Thus, one needs to navigate carefully and manage the risks in the region to be able to take
advantage of the business opportunities inherent in the region.
Learning Outcomes from the Chapter
* The role of aridity and water availability
* The different types of water resources accessible in the region
* Contrast the region’s different types of agriculture and herding activities
* Crossroads location of the region and the resulting cultural mosaic.
* Significance of the Atlas Mountains for the development options of the Maghreb
* Explain the motivations behind the uprising of the ‘Arab Spring’
* Turkey’s unique potential in the region (biggest economy)
* How oil wealth or its absence influences the course of development in individual countries.
Libya- Sahara Desert
Egypt – Nile River
Fertile Crescent
Business Strategy in a New Era of Uncertainty
This article is about formulating new strategy in the era of uncertainty. He focuses in case study
of Middle East as the intro to the chapter. Arab Spring caused major political changes in
countries. It triggers a new normal of uncertainty.
* Cost of doing business (CODB): stock market prices ( level of confidence in doing business in a
company) , exchange rates ( whether you are dependent on oil, raw materials) , interest rates
( cost of borrowing) , energy prices ( especially oil), inflation rates ( your prices of raw materials,
rapid increase in prices) ( others, taxation).
Of course, all of them are within the medium term.
Another analytical framework is Black Swan Events ( READ THE ARTICLE)
It is important because the main thesis is the new era of uncertainty, After the 90s, it seems to
be that people that it will be normal, everything is routine. But after 9/11 everything has
changed and almost every week something happens. Nassim Taleb wrote about that and these
are rare events. But nevertheless, business should be prepared for this.
1. A Strategic Mindset: Acceptance – This is part of companies operating environment.
2. Effective Environmental Scanning – What are those important factors to consider.
3. Due Diligence and Analysis -
4. Strengthen the Business – in the time of economic uncertainty, you need to show up
your cash position. It is possible to find many business deals but if you are customers not
able to pay back, you may face with liquidity.
5. Enhance Competitive Advantage – During pandemic many companies survive, and
income went up during that time. Companies that can adjust themselves to online
environment they will survive.
6. Stay the course but be flexible

Landforms
Mountain ranges in the region- Atlas Mountains, Zagros in Northern Iran.
Regional Characteristics
* Distinctive region composed of the Mediterranean and Persian Gulf countries, characterized
as mush by the unifying bonds of Islam and Arab culture as by deep internal contrasts and
severe conflicts.
One of the Earth’s most distinctive geographical regions
- Aridity
* Vegetation cannot be supported.
* Extensive areas of barren rock, gravel, or sand
* Supports few people
History
The region is the crossroad of civilizations between East and West. That makes the region
diverse in ethnicity. It is the birthplace of the different regions.
Population
There is a role of the desert, most of the population is alone the major bodies of water such as delta of
Nile river, and all of those are related to support the population. Libya and Algeria have a Sahara Desert,
the population located in North part.