The Middle Class in Development: Egypt and Saudi Arabia During the Oil Boom (1973-1983) and Since

During the oil boom era, tremendous hikes in energy prices allowed for fast expansion of state redistribution with little attention to clear policies of sustainable economic and human development. Put differently, the period accentuated political over developmental considerations in the redistribution of state funds. This chapter examines why such state redistribution took center stage in two different Middle Eastern states - Egypt and Saudi Arabia - where the oil boom still brought much similarity in the formulation of state policies of development. Particularly, it demonstrates how the nurturing of local middle classes turned from a central project of economic and human development into a main political consideration in state allocation. I argue that the making of middle-class societies in Egypt and Saudi Arabia entrenched authoritarianism in the Middle East - the outcome of this uneven socio-economic growth.