Arab Economies at a Tipping Point

The Arab world is experiencing an economic boom of historic proportions. The tiny Persian Gulf emirate of Dubai is emblematic. Boasting the world’s only 7-star hotel, its massive land reclamation project, allegedly the only manmade structure visible from the moon, is whimsically creating parcels shaped like continents and palm trees. With oil hovering around $90 a barrel and the Egyptian stock market up 1,800 percent in the last five years, one might ask what problems does World Bank President Robert Zoellick perceive that would justify making the economic revitalization of the Arab world one of the cornerstones of his new administration. Look beneath the surface, however, and Zoellick’s judgment might not seem so misplaced.