Mebrie, Solomon(Dr)Alemayehu, Dagim2021-12-102023-11-042021-12-102023-11-042021-07http://etd.aau.edu.et/handle/123456789/29187The middle East countries have maintained social, cultural, economic, and religious ties with the Horn countries for many years. However, since the 2011 Arab Spring the rift among the Middle East countries and the engagement of these countries with the Horn of Africa has shown an increase. The 2015 Yemeni civil war and the 2017 GCC crisis have exacerbated the rift among the Middle East states and resulted in increased engagement of Middle Eastern countries in the Horn of Africa for expanding their sphere of influence and serving their respective political, economic, and security interests in the Horn of Africa. The rift among the Middle Eastern countries in the Middle East and the export of their rift to the Horn of Africa in terms of proliferation of military installation and ports, increase in military training, military aid, and economic aid – coupled with their interventionist and coercive foreign policy towards the Horn has economic and security implications for the Horn of Africa in broader terms and Ethiopia in particular. The purpose of this study is to examine and analyze the increased engagement of Middle Eastern countries with the Horn of Africa, and its economic and security implications to Ethiopia and put forward some policy recommendations that Ethiopia should adopt to minimize the negative impacts and maximize the benefits of such engagement of Middle East countries in the Horn of Africa. In doing so, the researcher deployed a qualitative methodology. Accordingly, investment, trade, and tourism data and data gathered from key informant interviews, and secondary sources of data were analyzed. Hence, in terms of economic implication, the research has found that the economy of Ethiopia has been least impacted by the competitive engagement of Middle East countries in the Horn of Africa. On the other hand, the research shows that the increased engagement of Middle East countries in the Horn of Africa is a threat to the security of Ethiopia. Based on the findings, the study suggests the need to ensure the continuity of inward-looking foreign policy orientation of the country, and the policy of neutrality towards the Middle East countries. Moreover, the researcher emphasizes the need to promote a negotiated settlement of rift among the Middle East states to minimize the impacts and maximize the benefits of increased engagement of Middle East countries in the Horn of Africa. Keywords: Competition, Economy, Inward-looking, Neutrality, Rift, Rivalry, SecurityenCompetition, Economy, Inward-looking, Neutrality, Rift, Rivalry, SecurityThesis