Broken Contracts in the Middle East

In the face of punishing economic and political realities, Gulf Arab states are striving to transform their residents from subjects into citizens, but doing so is easier said than done.

Regardless of whether the protests worsen, the president's era is coming to an end.

To attract more foreign workers into its waning labor market, Emirati leaders have introduced reforms that risk alienating -- and angering -- their native citizens.

With its citizens balking at austerity, the coastal emirate is placing the onus of reforming its economic structure on the country's millions of foreign workers.

The U.S. sanctions against Iran include a demand that Iraq cut off the energy imports that have helped its troubled power sector keep its head above water.

Rising protest movements from nationalists and the economically aggrieved are pressuring Jordanian King Abdullah II to adopt policies that his foreign benefactors are sure to oppose.

The insular kingdom wants to bring in more foreign direct investment, but opening up its tourism sector will require it to grapple with its reputation, regional competitors and infrastructure shortfalls.

Haider al-Abadi steps away from the fray after the country's top Shiite cleric dismisses him as a contender. Meanwhile, parliament prepares to convene amid uncertainty about who controls a majority.

Concerned about contagious economic problems and Iranian influence, the island nation's wealthy neighbors can be expected to ride to the rescue, eventually.