46
Yemen
6
. The price of oil and the legacy of state dominated economic policies and structures are the two
factors that have shaped the MENA economies over the past twenty five years. In 2010, its total GDP
amounted to US$ 1.2 trn and its GNI (formerly GNP per capita), using the Atlas method of calculation, to
$3.866. More than 23% of the 336.5 million people of MENA live on less than $2 per day.
As the population in this region is growing more rapidly than other parts of the world, there are
expectations of improvement in life expectancy, the quality of life, and infrastructure. Figure 3.2 shows
the diversity across MENA countries, in terms of absolute GDP value against a purchasing power parity
per capita basis. Saudi Arabia occupies a relatively lone position as the resource ‘rich, labour importing
country’ at the top in absolute GDP value while Qatar has a significant lead on a purchasing power per
capita basis. A cluster of labour abundant but either resource rich (Yemen) or resource poor countries take
up lowly positions by both measures.
Figure 3.2 Structural Diversity of MENA Region Countries
7
Source: IMF
In common with other regions, MENA countries’ ability to be competitive in the export market is
dependent on the strength, nature and quality of its domestic economies. Researchers argue that the short-
run costs of adjustment to trade liberalisation and successful integration to global markets and global
markets have generated large employment dividends. However, this association is also dependent on FDI
inflows. Trade alone adds a little to job creation. Low value added exports and loose or poor links to
global production networks together with a paucity of FDI may indeed reduce these countries’ capacity
for employment creation.
6
Yemen, together with Iraq, Kuwait, Saudi Arabia and the UAE, is one of the main providers of the world’s crude
oil supplies.
7
MENA-OECD Working Group on SME Policy, Entrepreneurship and Human Capital Development, Tunis 29
March, 2010