The performance of Arab countries in 2007 was uneven. Some sectors increased their share in the world economy while others saw their share decline. This issue of the Annual Review assesses, through an analysis of economic indicators, the performance of the Arab economies in achieving regional integration and integration into the world economy, with an emphasis on foreign direct investment. The Annual Review also discusses labour migration as one of the regional integration indicators. It considers the status of labour movement in the Arab region and the remittances of migrant workers and their impact on the economies of their countries of origin. The Annual Review presents a set of recommendations on how to remove obstacles that hinder the regional integration of the Arab economies and their integration into the global economy.