While there was a slight improvement in globalization indicators and regional integration in the ESCWA region in 2004, their contribution to the global economy remains modest. This study presents and analyses the level of integration of Arab economies into the world economy, as well as the status of economic cooperation between Arab countries. Furthermore, the study presents recommendations aimed at strengthening efforts made by those countries to meet the global economy and enhance regional integration in different economical sectors. This study targets mainly decision-makers in ESCWA member countries and other Arab countries, in addition to researchers and academics with interests in globalization and regional integration.