American investment in Mideast to stay focused on larger economies amid Ukraine war

Al-Monitor Pro Members

Howard J. Shatz

Senior Economist, RAND Corporation 

Sept. 27, 2022

China is often viewed as the economic powerhouse in the Middle East, but the United States has extensive trade, investment and financial links. However, in many cases, these links are highly concentrated in just a few of the 20 economies in the region.  

Russia’s invasion of Ukraine is unlikely to change this, and many countries in the region may remain troubled economically and politically. However, the increase in oil prices, economic reforms in several economies and increases in regional cooperation stemming from the Abraham Accords could make selected markets more attractive. Accordingly, although dramatic shifts are unlikely, these changes could spur new increases in investment in both directions — from the United States to the Middle East, and from the Middle East to the United States — as well as increases in exports from the United States to the region.