Economic trends will provide a very important part of the context in which President Obama’s policies play out in the remainder of his term until January 2017. The Middle East’s economic recovery from the 2008-2010 global economic crisis has been mixed. While major oil exporting countries have made a solid recovery, most of the oil importing countries continue to struggle, which reflects, in large part, regional political and security issues, the inability of governments to implement difficult policy reforms, and continued slow global growth. The increased financial support from some major oil exporting countries has helped a number of oil importing countries to stave off economic challenges. However, underlying conditions remain highly vulnerable to domestic and external risks. The near and medium term economic outlook is fragile and, unless addressed vigorously, could heighten regional political and security instability.