Regional institutions’ contribution to energy market integration in the middle East

Abstract

The energy market integration in the Middle East is assessed by comparing the acting institutions in the Levant and Persian Gulf sub-regions. Pami Aalto's regional institution's theoretical framework and the case-oriented comparative research method are adopted for this purpose. Changes in the Levant region coincided with the Arab League's establishment. This league did not develop due to inappropriate bi-lateral energy relationships and a lack of effort among the inter-state trade institutions. Regional institutions, lacking order creation, next to the Arab League members' sovereignty disturb gas transmission, transit, and environmental protection regulations. The Arab League has recognized Israel as an energy-producing member and has reduced the political conflicts' intensity to improve Arabic leadership in the Levant integration. The Persian Gulf states' unilateral trade negotiations, sanctions imposed by the US and EU on Iran's energy sector, and political disputes between Iran and some Arab states prevent coherent regional integration, liberalization, and the launch of joint energy projects. In bi-lateral energy diplomacy competition between the regional great energy powers, Iran and Saudi Arabia outside the region is evident. Though the environmental stewardship institution supports green energy, the profit-interest has priority in these regions. The outcome of this article reveals the existence of constraints imposed on energy market integration in these sub-regions.