Intervention on the part of the Western powers in the domestic affairs of the eight regional states of the Gulf was a familiar feature from World War II until the British withdrawal in 1971, when it assumed more subtle forms. In addition, the oil shocks of the 1970s, followed closely by the Iranian revolution and the hostage crisis, triggered economic dislocations across the globe, as well as political upheaval and the disruption of a long-established security structure. This work identifies and examines the issues that have the potential to affect future developments in the Gulf region. It includes the rapid demographic changes, the relationship of the oil market to political stability and progress, the resurgence of Islam as a political force, the often heavy expenditures on defence, and new geostrategic realities after the end of the Cold War.