This is a report on trade and investment strategies in the Middle East. Engendered by regressive economic policies, the misery and hopelessness that characterize much of the region lie at the heart of international terrorism. The authors argue that to combat economic stagnation and generate sustained growth the Middle East and North African (MENA) countries will have to do a lot more than lower tariffs and reduce intraregional trade barriers. The MENA countries must also dramatically reduce the role of the state in their economies and cut bureaucratic red tape and corruption. The survey of regional businesses and entrepreneurs that accompanies this report gives weight to long-held suspicions that corrupt practices and other economic inefficiencies and bottlenecks undermine prospects for outside investment and economic growth.