Strengthening China's and India's Trade and Investment Ties to the Middle East and North Africa

The rise of China and India has brought high oil revenues, cheaper imports and improved terms of trade to the MENA region as a whole. This is likely to continue in the future. But the manufacturing exporters may see sizable losses, particularly in the European Union and other markets. The challenge for the region's labor-abundant countries will thus be to generate jobs through increased productivity growth in all sectors of the economy.