The GCC countries today face various challenges, of which arguably the most important is the security threats stemming from regional rivalries and the Arab Spring. In fact, most of these challenges are either fundamentally economic in nature, or they can be addressed economically, even those that superficially lack an economic dimension. For example, the Middle East is currently facing a wave of religious extremism, which can be partially attributed to the spread of poverty in the wake of the global financial crisis. Consequently, it can be remedied via specific economic interventions, despite the presence of political and social factors that play a much more important role in explaining the extremism.
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