Economic development in the middle east countries; case of Iran and Suudi Arabia

The Middle East has an important place both politically and economically with its geography, location and all its natural riches. The main economic resource in these countries is their natural wealth. The biggest source of income from the economic point of view is oil in these countries. The economies of the countries located in the Middle East region are in a very good condition relating to their oil production. Due to the political problems that are happening in these countries, there is a constant chaos environment and their economies are affected negatively. In this study, all the factors playing a role in the economic development of Iran and Saudi Arabia, which are Middle East countries, will be determined and examined in detail. While giving a general information about economic development, macroeconomic variables leading to economic development and the effect of these variables on economy will be mentioned. In addition, the economic structure of Iran and Saudi Arabia will be investigated and the factors and economic variables playing a role in the economic development of these countries will be mentioned. It will be also examined that whether these two countries are similar in economic terms. Finally, all commercial and economic relations of Turkey with these two countries will be evaluated in detail. As a result of this evaluation, the economic importance of these two countries for Turkey will be determined. Moreover, the impact of these two countries' foreign trade on their economic growth will be measured by Granger Causality Analysis and it is concluded that there is a bilateral relationship between the export rate and the economic growth rate according to the result.