Abstract: The Gulf Yearbook 2006-2007 highlights the main and critical developments of the year for the Gulf region focusing on the major political, economic, security, and social trends. With the Gulf region facing challenges on numerous fronts, the Yearbook attempts to throw an analytical perspective on what has been another tumultuous year in Gulf affairs. It looks at the key political and social developments in the region with a particular focus on the election processes taking place, for example in Kuwait and Bahrain. This is followed by an in-depth look into the economic issues that have dominated the year including the situation of the financial markets and the status of the region’s petrochemical industry. With oil prices hovering at record levels, an evaluation of the oil sector completes this section. Security and defense issues dominate the third part of the Yearbook with developments in Iraq, the debate over the Iranian nuclear program and terrorism and counter-terrorism strategies all requiring a specific focus. In the fourth section, the Gulf Yearbook turns to the international relations of the Gulf with a look at the impact of US policy in the region and the emerging roles that both Europe and Asia are playing. Particular emphasis is given to some of the regional developments including the conflict in Lebanon of the summer of 2006 and its repercussions. This is followed by a closer look at events in Iraq, Iran and Yemen and their impact on the region as a whole. The volume is then completed with an analysis of environmental policies as the need to develop a sustainable growth process has taken on an increased importance throughout the year. Overall, the Gulf Yearbook 2006-2007 not only provides a comprehensive overview of the Gulf’s developments in 2006 but equally extends an analytical framework whereby key trends and scenarios for 2007 can be outlined and examined.