It is Time for Truce for Peace in The Middle East and North Africa

The profits of peace in the MENA region are far greater than war.

A truce for peace in the Middle East is essential to address historical grievances, mitigate resource competition, end proxy wars, reconcile religious and ethnic differences, build trust among adversaries, stabilize the region, promote economic development, and address humanitarian concerns. However, achieving such a truce requires sustained diplomatic efforts, compromise, and the involvement of regional and international stakeholders.

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There are 515 million people living in the Middle East and North Africa (MENA) region. More than 60 percent of that population are under 35 years old. The MENA region is highly populated, young, culturally rich and diverse region. The MENA region expands over three continents and controls trading routes between Asia, Europe and Africa. It has the reserves of 40 percent of the world's wealth of Energy.

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In 2023, Saudi Arabia was at the forefront of investments and construction Industry. According to a report from McKinsey & Co.,?Saudi Arabia is projected to spend over US$175 billion annually on industrial and mega projects between 2025 and 2028.

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On the other hand, for example, the services sector in MENA exceeds US$120 billion by 2025. The international market information also expects over 660 oil & gas projects to commence operations in the Middle East from 2024 to 2028.

?Moreover, the infrastructure in the Middle East and North Africa (MENA) boasts great potential and investment opportunities. According to the latest estimate from MEED, an online business intelligence provider for MENA, the region has more than US$3 trillion of projects in the pipeline, concentrated in construction, power, transportation, and the oil and gas industry.

All are only few examples of the peace and stability in the MENA region can bring to the kings of business and investment.

?The Middle East has been a region of significant geopolitical tensions and conflicts for decades, with various factors contributing to the need for a truce for peace:

1.???????? Historical Conflicts: The Middle East has a long history of conflicts stemming from territorial disputes, religious differences, and ethnic tensions. These conflicts, such as the Israeli-Palestinian conflict, have deep-rooted historical grievances that require careful negotiation and compromise to resolve.

2.???????? Resource Competition: The region is rich in natural resources, particularly oil, which leads to competition and power struggles among nations. Resource competition exacerbates tensions and can escalate conflicts if not managed properly.

3.???????? Proxy Wars: Many conflicts in the Middle East are fueled by external powers seeking to advance their interests. Proxy wars, where outside actors support different factions within a country, have prolonged conflicts and made them difficult to resolve.

4.???????? Religious and Ethnic Diversity: The Middle East is home to diverse religious and ethnic groups, which adds complexity to conflicts and makes peace agreements challenging to negotiate. Tensions between Sunni and Shia Muslims, for example, have fueled conflicts in countries like Iraq and Syria.

5.???????? Lack of Trust: Years of conflict have eroded trust among the parties involved, making it tough to reach sustainable peace agreements. Building trust and confidence among adversaries is crucial for any truce or peace process to succeed.

6.???????? Regional Instability: Instability in one part of the Middle East often has ripple effects across the region. Conflicts in Syria, Iraq, and Yemen, for example, have led to the displacement of millions of people and created security challenges for neighbouring countries.

7.???????? Economic Development: Persistent conflicts hinder economic development and prosperity in the region. A truce for peace would allow resources to be redirected towards infrastructure, education, and healthcare, fostering stability and growth.

8.???????? Humanitarian Concerns: Ongoing conflicts have resulted in immense human suffering, including displacement, violence, and loss of life. A truce for peace would alleviate humanitarian crises and allow for delivering aid to those in need.

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The Heavy Cost of Wars in the MENA Region

?The cost of war in the Middle East and North Africa (MENA) region over the last 15 years exceeds 2.7 trillion US dollars of direct losses (especially the infrastructure), destroyed assets, and the cost of lost opportunity due to lagging development. Such cost also encompasses various aspects, including direct military expenditures, economic losses, infrastructure damage, humanitarian aid, and long-term consequences.

However, calculating an exact figure for the overall cost can be challenging due to the complex and multifaceted nature of the conflicts. Here are some factors contributing to the cost of war in the MENA region over the last 15 years:

1.???????? Military Expenditures: Countries involved in conflicts in the MENA region have allocated significant resources to fund their military operations, including purchasing arms and maintaining armed forces deployed or engaged in war operation.

2.???????? Infrastructure Damage: Wars and conflicts in the MENA region have resulted in extensive damage to infrastructure, including roads, bridges, schools, hospitals, and utilities. Rebuilding and repairing infrastructure can be costly and time-consuming.

3.???????? Economic Losses: Conflict disrupts economic activities, leading to decreased productivity, reduced trade, and investment, and loss of livelihoods. The overall economic impact includes factors such as GDP decline, loss of tax revenue, and increased unemployment.

4.???????? Humanitarian Aid and Reconstruction: International organizations and donor countries provide humanitarian aid and support for reconstruction efforts in conflict-affected areas. These costs include providing food, shelter, healthcare, and education for displaced population, and rebuilding the infrastructure and institutions.

5.???????? Long-Term Consequences: The repercussions of war in the MENA region extend beyond immediate costs and include long-term consequences such as political instability, social unrest, and psychological trauma. Addressing these challenges requires sustained investment in peacebuilding, reconciliation, and development initiatives.

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The Opportunities for Business That Peace Present in MENA

Establishing long lasting peace in the Middle East and North Africa (MENA) region presents numerous opportunities for businesses across various sectors. Here are some key opportunities:

1.???????? Economic Development: Peace fosters a stable environment conducive to economic growth. With reduced political uncertainty and violence, businesses can thrive, attracting domestic and foreign investments. Economic development opportunities arise in sectors such as infrastructure development, construction, manufacturing, tourism, and agriculture.

2.???????? Trade and Investment: Peace facilitates cross-border trade and investment opportunities. Bilateral and multilateral trade agreements can be established, creating a more favourable business environment for companies to expand their market reach and explore new investment opportunities in the region.

3.???????? Reconstruction and Infrastructure Development: Conflict-affected areas require extensive reconstruction and infrastructure development. There are opportunities for businesses involved in construction, engineering, and urban development to participate in rebuilding efforts, including the construction of roads, bridges, schools, hospitals, and utilities.

4.???????? Energy Sector: The MENA region is rich in energy resources, including oil and natural gas. Peaceful conditions allow for the exploration, production, and export of energy resources, attracting investment in the energy sector and fostering partnerships between countries for energy cooperation and infrastructure development.

5.???????? Technology and Innovation: Peace promotes an environment conducive to innovation and technological advancement. There are opportunities for businesses in the technology sector to leverage emerging trends such as digitalization, e-commerce, fintech, and renewable energy technologies to drive economic growth and development in the region.

6.???????? Human Capital Development: Peace enables investments in education, training, and human capital development. Businesses can benefit from a skilled workforce and talent pool, enhancing productivity and competitiveness in the global market.

7.???????? Tourism and Hospitality: Peaceful conditions attract tourists and business travellers to the MENA region. There are opportunities for businesses in the tourism and hospitality sectors to develop and expand tourist infrastructure, including hotels, resorts, transportation services, and cultural attractions.

8.???????? Financial Services: A peaceful environment promotes financial stability and encourages investment in financial services. There are opportunities for businesses in banking, insurance, investment management, and capital markets to expand their operations and serve the needs of a growing economy.

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In general terms, the establishment of peace in the MENA region unlocks a wide range of opportunities for businesses to contribute to economic development, job creation, and prosperity. The realisation of such opportunities requires sustained efforts from governments, businesses, and international stakeholders to promote peace, stability, and inclusive growth in the region.

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The profits of peace in the MENA region are far greater than war, so let us give peace a chance. And, let us not create an ambience of social unrest and revolt that the enemies of democracy may use to undermine global stability.