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The novel coronavirus (COVID-19) pandemic has affected the countries in the Middle East and North Africa (MENA) region in different ways, and the varying political structures, economic conditions and civil-crisis preparedness of the states in this region have resulted in it being handled in a variety of ways too. Even if it is difficult to assess how the crisis has affected the MENA region in more detail due to the region's general volatility and ongoing conflicts in Libya and Syria, current trends have so far not shown a diminution in regional conflicts. Nor have the pandemic's consequences in the Middle East lessened Europe's problems with the region. Thus the article argues that COVID-19 has not really led to a decrease in the conflicts and wars plaguing the MENA region, and that, therefore, the effects for Europe—both short- and long-term—will still be felt, as existing problems will continue to affect Europe.

Purpose– This study aims to examine the factors affecting the foreign direct investment (FDI) and foreign portfolio investment (FPI) flows among the 16 economies comprising the Middle East and North African (MENA) region.Design/methodology/approach– Panel data for the period 1984-2012 are used, and the generalized method of moment (GMM) technique is implemented.Findings– The results support the agglomeration effect, which indicates that countries which have already had FDI attract more FDI in the future. Economic risk affects FDI significantly and negatively, whereas trade openness has a significant and positive impact on FDI. Of the political risk factors considered, three of them, namely, law and order, ethnic tension and internal conflict, significantly affect FDI. The results on FPI show that the lag in FPI and the degree of openness play a significant role in attracting FPI into the MENA region. In addition, stock market capitalization, as well as the return on investment affects the FPI flow positively. The study also reveals a negative government structure impact on FPI, whereas, surprisingly, religious tension in the MENA region affects FPI positively.Originality/value– This research examines, simultaneously, the factors that determine not only FDI but also FPI flow. It uses a powerful econometric technique which avoids common estimation problems such as endogeneity, heteroskedasticity and autocorrelation. Policymakers in the MENA region recognized the need for outside capital as a major catalyst of development, economic growth and modernization. Therefore, it is essential to know the factors that would lead to a surge in capital flow to these countries.

We examine the role of spatial spillovers in economic growth for the Middle East and North Africa (MENA) region. We explicitly model spatial interactions that may arise from geography, bilateral trade, or institutional similarities, and ask how much they are likely to matter for growth externalities and spillover effects. We find that the economic growth of a MENA country is positively affected by the economic growth of countries that are geographically close and that have similar institutional characteristics. The spillover effects of growth are due to economic activities in countries that trade primarily in oil, which accounts for the gap in spillover effects due to institutional similarity between resource‐rich and resource‐poor countries in the MENA region. However, trade linkages matter less. Where they do have an effect, it is through the local range effects of a spatially lagged explanatory variable capturing the effects of the trade balance on growth.

The utilization of electricity-based fuels (e-fuels) is a potential strategy component for achieving greenhouse gas neutrality in the European Union (EU). As renewable electricity production sites in the EU itself might be scarce and relatively expensive, importing e-fuels from the Middle East and North Africa (MENA) could be a complementary and cost-efficient option. Using the energy system model Enertile, supply curves for hydrogen and synthetic methane in the MENA region are determined for the years 2030 and 2050 to evaluate this import option techno-economically. The model optimizes investments in renewable electricity production, e-fuel production chains, and local electricity transport infrastructures. Analyses of renewable electricity generation potentials show that the MENA region in particular has large low-cost solar power potentials. Optimization results in Enertile show for a weighted average cost of capital of 7% that substantial hydrogen production starts above 100 €/MWhH2 in 2030 and above 70 €/MWhH2 in 2050. Substantial synthetic methane production in the model results starts above 170 €/MWhCH4 in 2030 and above 120 €/MWhCH4 in 2050. The most important cost component in both fuel production routes is electricity. Taking into account transport cost surcharges, in Europe synthetic methane from MENA is available above 180 €/MWhCH4 in 2030 and above 130 €/MWhCH4 in 2050. Hydrogen exports from MENA to Europe cost above 120 €/MWhH2 in 2030 and above 90 €/MWhH2 in 2050. If exported to Europe, both e-fuels are more expensive to produce and transport in liquefied form than in gaseous form. A comparison of European hydrogen supply curves with hydrogen imports from MENA for 2050 reveals that imports can only be economically efficient if the two following conditions are met: Firstly, similar interest rates prevail in the EU and MENA; secondly, hydrogen transport costs converge at the cheap end of the range in the current literature. Apart from this, a shortage of land for renewable electricity generation in ...

The concept of upgrading is new in the economic literature, very few theorists are focused on explaining this concept, but all agreed on the relationship of upgrading with the competitiveness of companies. In the context of increasingly competitive environment the countries of the MENA regions including Algeria, Egypt, Tunisia and Morocco have established several programs to upgrade their businesses. Efforts to revitalize these programs have nevertheless been undertaken in recent years, raising hopes for a favorable impact on the competitiveness of companies. Moreover, we can say that the Tunisian upgrade program is called successful due to the involvement of his government and the importance given to vocational training. Conversely, Morocco seems to have adopted a more liberal approach, its government seeks to act on market imperfections. The Egyptian program is highly structured, with strong government control and intervention of two foreign bodies, the EU and UNIDO. The pre-selection of intervention areas is also an Egyptian specificity, as well as the payment of an incentive amount for each company.

Military burdens in hostile environments may be high, as countries choose to spend on the military for deterrence purposes. In this study, we test whether the convergence hypothesis is valid for military burdens of a panel of the Middle East and North Africa (MENA) countries. The results of the analysis suggest that there is unconditional beta-convergence for the panel; however, individual convergence is valid for only Algeria, Egypt, Israel, Jordan, Morocco, and Saudi Arabia. We also test whether the military burdens of Israel and the United States influence the military burdens of the countries in the panel. The results suggest that only the military burdens of Kuwait, Morocco, Oman, Saudi Arabia, Tunisia, and Turkey converge to that of Israel, while individual convergence to the United States is only valid for Jordan, Kuwait, Morocco, Oman, and Tunisia.