ABSTRACT
Regional political and economic cooperation in the Middle East is at a historical turning point. Among the various factors that account for this claim, three in particular stand out. The first factor is the international environment within which the Middle Eastern countries find themselves operating. The effects of the end of the Cold War, the Gulf War and developments in its aftermath, and relatively recent accomplishments in the Arab-Israeli peace process are the apparent dominant factors that shape this new international environment. Perhaps equally important effects are to come from the new institutional arrangements stemming from developments in the Uruguay Round, NAFTA and the European Union reshaping the organisation and regulation of the world trade. These developments are expected to have significant impact on the economies of the Middle Eastern countries and their prospects for regional cooperation.
