The MENA region includes countries in the Middle East and North Africa. MENA markets are classified as frontier markets and are rich in natural resources particularly oil and natural gas. As the price of oil has plunged some of these countries are better prepared to weather this downturn than others. The following chart shows that some of these countries have levels of reserves and low government debt:
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While we group MENA as one region, there are wide differences between the individual countries. Oil is a significant driver of the economy only in six of the countries. The remaining five countries in MENA are oil importers. These countries should benefit from lower oil crisis.
Source: MENA Markets: More Than Just About Oil, Franklin Templeton Investments
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