The modern Arab world is faced with a serious problem in the imbalance between human and natural resources. The Gulf states, with their vast natural resources, are poor in human resources, whereas in Egypt or Jordan the picture is reversed. This study, first published in 1983, considers the range of factors affecting development in the Arab world and examines the broad sectoral resources, the infrastructure for resource development and the range of problems shaping the political economy of Arab advancement. In conclusion, an analysis is made of the existing trends in the transformation of Arab society and ways are suggested in which these trends will develop over the next decade.