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The purpose of this paper is to examine the linkage between a sample of six oil-importing and oil-exporting MENA countries and oil price shocks over the period 2002–2020. The event study methodology is used to examine the behavior of stock prices around an event to measure its value under the efficient market theory. The findings suggest that the dataset used and the results are robust proven by overall statistically significant results for the eight events considered. The 2008 global financial crisis had the largest impact on stock markets on the event day. The nature and duration of response are also found to vary across different events and countries. Thus the practical implications of this paper are to suggest that investors should learn to better assess oil shocks by taking into account differences in country specific policies, government effectiveness and monetary policy.

This paper investigates whether non-primary exports directly or indirectly cause economic growth in the United Arab Emirates (UAE). This study performs the Johansen test to examine the presence of co-integration between the variables in an augmented production function. The Granger causality test is performed to investigate the short-run causality between non-primary exports and economic growth, while the long-run causality is investigated by employing the Toda and Yamamoto procedure. The empirical analysis indicates that the variables are co-integrated, and that short-run causality runs from non-primary exports to economic growth; results exhibit no evidence of direct causality from non-primary exports to economic growth in the long-run.