The Russian-Ukrainian War and Its Impact on the Middle East Economy

Abstract

The Russia–Ukraine war, which erupted in February 2022, caused global disruptions that affected markets and economies worldwide, including the Middle East. As both Russia and Ukraine are major producers of grain and energy suppliers, oil, gas, and grain prices were directly impacted due to Western sanctions on Russia and disrupted Ukrainian exports.

In the Middle East, oil-exporting countries like Saudi Arabia and the UAE benefited from the surge in oil prices, leading to significant budget surpluses and stronger public finances. On the other hand, energy-importing countries such as Egypt, Jordan, and Lebanon struggled with rising fuel and food costs, which exacerbated inflation and strained national budgets.

Disruptions in wheat supplies also triggered a food crisis, particularly in nations heavily reliant on Ukrainian imports, such as Egypt. This situation has pushed several Arab countries to reconsider their agricultural and food security strategies.

Overall, the war has posed both challenges and opportunities, prompting Middle Eastern nations to diversify their economies and strengthen their food and energy security.