Gad G. Gilbar - The Middle East Oil Decade and Beyond

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First Published in 1997 in Great Britain by
Routledge
2 Park Square, Milton Park, Abingdon, Oxon, 0X14 4RN

and in the United States of America by
Routledge
270 Madison Ave, New York NY 10016

Transferred to Digital Printing 2007

Copyright 1997 Gad G. Gilbar

British Library Cataloguing in Publication Data:

A catalogue record for this book is available from the British Library

ISBN 0-7146-4734-9

Library of Congress Cataloging-in-Publication Data:

A catalog record for this book is available from the Library of Congress

All rights reserved. No part of this publication may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of Routledge.

Cover photograph: Crude Oil Terminal, Yanbu. Royal Commission for Jubail and Yanbu, Fifteen Years of Accomplishments, Riyadh, 1991.

Publishers Note
The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original may be apparent

Printed and bound by CPI Antony Rowe, Eastbourne

In memory of
Wolfgang Markus

Contents

Tables

Figures and Illustrations

Figures

Illustrations

Abbreviations

AAS	Asian and African Studies
ARE	Arab Republic of Egypt
CAPMAS	Central Agency for Public Mobilisation and Statistics (Cairo)
CBS	Central Bureau of Statistics (Jerusalem)
DESIPA	Department for Economic and Social Information and Policy Analysis
DK	Dawlat al-kuwayt
DS	Department of Statistics (Amman)
EIU	Economist Intelligence Unit
ESCWA	Economic and Social Commission for Western Asia
GDP	Gross Domestic Product
GNP	Gross National Product
HKJ	The Hashemite Kingdom of Jordan
IBRD	International Bank for Reconstruction and Development
IJMES	International Journal of Middle East Studies
IMF	International Monetary Fund
JAS	al-Jumhuriyya al-arabiyya al-suriyya
JPS	Journal of Palestine Studies
JSGAS	Judaea, Samaria and Gaza Area Statistics
MECS	Middle East Contemporary Survey
MEED	Middle East Economic Digest
MEJ	Middle East Journal
MENA	Middle East News Agency
MES	Middle Eastern Studies
MTM	Marches Tropicaux et Mediterraneens
OAPEC	Organization of Arab Petroleum Exporting Countries
PE	Petroleum Economist
PLO	Palestine Liberation Organization
SAI	Statistical Abstract of Israel
SY	Statistical Yearbook
UNCTAD	United Nations Conference on Trade and Development
UNDP	United Nations Development Programme
UNFPA	United Nations Fund for Population Activities
UNIDO	United Nations Industrial Development Organization
UNRWA	United Nations Relief and Works Agency for Palestine Refugees in the Near East
USAID	United States Agency for International Development
WB	World Bank

Preface

The sudden huge price hikes in Middle Eastern oil following the October War of 1973 yielded, almost overnight, an enormous flow of resources to states and societies that could not have anticipated such instant affluence. To this came unprecedented political power because of the total control the oil states were able to maintain over oil production and prices until the second half of 1982. Thus, though covering barely nine years, the period may appropriately be dubbed the oil decade."

Of the major changes the oil decade brought about some were quite unforeseen e.g., the revolution that took place in the educational system of the Arab states or the change in their attitude toward establishing economic ties with Israel while others were more predictable, such as the entrenchment of separate territorial Arab states in a move away from pan-Arabism and the growing economic and political involvement of the United States in the region.

This book highlights three fundamental aspects of the oil decade. First is the influence the production, export and revenues of oil had on domestic, regional and international relations, in particular between foreign producer companies and local governments ().

Second is the expansion of higher education, no doubt the most single significant social change the oil decade engendered. Many new universities throughout the Arab world began opening their doors to an ever-increasing number of students, especially in the sciences and civil engineering. Significant was also the proportion of women students enrolling. The huge investments required for establishing advanced systems of higher learning were of course provided by the financial resources the oil states now had at their disposal, but the impetus came from the realization that only through successfully developing their human resources could they hope to transform their economic structures.

The third aspect is the way economic relations developed between the Arab states and Israel. As of the early 1970s the official Arab boycott on goods manufactured in Israel was increasingly being circumvented and a wide range of agricultural and industrial products were beginning to find their way to customers in Arab states. This was to prove of much significance when, following the first Oslo agreement of 1993, trade relations became overt and official. While there were many reasons why during this period the Arab states began quietly ignoring an economic boycott they demanded strict adherence to officially, the abrupt huge rise in the demand for industrial and consumer goods in the Arab oil states after 1973 is certainly among the dominant ones.

in Elie Kedourie and Sylvia G. Haim (eds.), Essays on the Economic History of the Middle East, London: Frank Cass, 1988 pp. 196-211. The Introduction appeared first in The Middle East Contemporary Survey 10 (1986): 246-57. They are here reprinted with permission.

My deep gratitude is extended to Amatzia Baram, Sylvia Haim, Itamar Rabinovich and P.J. Vatikiotis for their valuable comments. I am also indebted to Judy Krausz, Dick Bruggeman, Iris Fruchter and Onn Winckler for their help in preparing this book for publication. Finally, I wish to express my thanks to two institutions for their generous support: the study of the development of higher education in seven Arab states was funded by the S. Neaman Institute for Advanced Studies in Science and Technology, Israel Institute of Technology; and research on the informal trade relations between Israel and the Arab states was made possible through a grant from the Tami Steinmetz Center for Peace Research, Tel Aviv University.

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