the little sheikdoms are doing quite well. UAE is basically a collection of little sheikdoms. I had a lot of dealing with Dubai a while back. Youd be amazed at the clothes some of those women where under the Bhurka. Latest designer labels etc. And I was informed that under those, they have the latest in Victoria's Secret. They are still relatively strict by our standards and not democracies, but they are moving in the right direction as their prosperity increases. In dubai, foreigners are allowed an alcohol allowance (which gets rapidly sold off to the locals). As these sheikdoms get more prosperous, their influence will extend. They also want a stable middle east.
I cannot over emphasise the need to sort out the Palastinian issue. And it's a thorny one. Unfortunately, the situation is a mess. The Palastinians think they have nothing left to lose which is pretty accurate. the Israel thinks that with the unconditional US support they currently have, they don't need to make any compromises. This needs to change, or the current situation will go on forever. Once they have sorted that problem out the entire region can benefit.
Now here is a controversial thought (even more so than the Israel one). We need to find a way to live with and encourage Iran. Iran is stable and a (sortof) democracy. They are on the ball as regards education etc. They are going in the right direction. Sure there is lots, wrong with them. They make me kindof antsy every time they mouth off about destroying Israel, but this is mostly just sabre rattling. Now History tells us that if Iran continues to prosper and grow, they will (a) become less radical as they get more to lose, and (b) become a stabalising force in the region. Saudi who is nominally our ally is far worse than Iran, yet we can live with them? Maybe because saudi never overan a certain countries embassy a couple of decades ago. Some people really know how to hold a grudge.