The main objective of this study is to examine the extent of and the potential for Arab economic integration. It adds to the growing literature on the issue of economic integration by throwing the spotlight on several issues hitherto little considered in the existing literature. The study especially blends various aspects of economic integration with models of spatial competition economic geography regionalization and globalisation to explain the problems of and prospects for economic integration for the Arab countries. It is important to realise that economic integration has become an important aim for almost all countries in the world in particular less developed countries which need more economic efforts to be able to deal with the current international milieu and the gale of globalisation. The Arab countries have engaged in a number of initiatives to advance economic integration however despite this the degree of economic integration among them is still relatively insignificant. The study also attempts to offer theoretical models to explain the obstacles preventing economic integration in the Arab world.