THE IMPACT OF OIL PRICE VOLATILITY ON ECONOMIC GROWTH IN THE MIDDLE EAST AND AFRICA

Oil price volatility has profound implications for economies heavily reliant on oil exports, particularly in the Middle East and Africa (MEA). This study investigates the relationship between oil price fluctuations and economic growth in MEA countries over the period 2000–2023. Using a panel data approach, we analyze how oil price volatility affects GDP growth, considering factors such as export dependency, fiscal policy, and geopolitical instability. The results reveal a significant negative correlation between oil price volatility and economic growth in oil-dependent economies, with heterogeneity across the region. Countries with diversified economies exhibit greater resilience, while policy responses such as sovereign wealth funds mitigate adverse effects. These findings underscore the need for economic diversification and adaptive fiscal strategies to stabilize growth in the face of oil market uncertainty.