The outlook for the Arab world appears to be clouded with uncertainties these days. The region's ability to achieve sustained growth over the long run may look as if it is impeded by a fear of engaging in reforms, that reforms might spark social and political upheaval and destroy the power base of vested interests. But there is no denying that the Arab world is being shaken to its very foundations by the rise of poverty and unemployment, a condition that could drive people to despair and nurture extremism and violence. However the region is capable of overcoming these challenges as identified by Al-Hamid in this lecture.