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DEVELOPING countries, such as those of the Arab world, are particularly vulnerable to both organized and business crime because of political, legal, and economic systems that are still in the process of evolving. Just as in the rest of the world, most economic crimes in the Arab world stem from corrupt government officials, an avaricious business community, and individuals and groups who are willing to exploit others to achieve their own goals.

The United Nations Office on Drugs and Crimes has observed that corrupt governmental authorities in many developing countries regularly force residents to pay “surcharges” to obtain drivers' licenses, building permits, or other routine activities. Representatives of the World Bank have stated that corruption is the single greatest obstacle to economic and social development in the world today. Widespread corruption tends to sap the energies of any country, and the resulting anger and cynicism affect the level of trust that is necessary for political and economic systems to function effectively. Corruption also drains the economic and human resources that are vital to developing nations.

Developing countries generally lag behind on technological advances, and computer crime has presented a new and complex problem for Arab countries. Many Arab nations have set up special ecrime units to deal with incidences of cyber crime. While computer hacking in the Middle East amounts to only 1 percent of the world's hacking totals, incidents of cyber crime are on the rise. For example, in 2002, the United Arab Emirates saw a 300 percent rise in computer hacking in only six months.

In a major crime spree, which UAE traced to Indonesia, hackers managed to steal between $2 and $3 billion in an ATM (auto-teller) scam. This incident helped to alert Arab countries to their vulnerabilities. Experts on cyber crime have determined that Iran, Kuwait, United Arab Emirates, Saudi Arabia, and Egypt are among the top 10 nations of the world that are the most vulnerable to attack by computer hackers.

Government and Business

In addition to business and organized crime, the Arab world has had its share of political scandals. In Israel, for example, the police interrogated Prime Minister Ariel Sharon in November 2003 about a $1.5 million loan from a South African businessman. A separate scandal involved Sharon's son, Gilad, who exercised his right to remain silent when questioned about a suspiciously illegal development deal in Greece. In November 2003, the Muslim Brotherhood charged the administration of President Hosni Mubarak of Egypt with providing cover for widespread corruption at all levels of government. For over six decades, governmental authorities in Lebanon have been unable to stop widespread corruption. In 2003, several major scandals occurred. Lebanese officials launched an investigation concerning questionable activities at the Al-Madina Bank. Central Bank Governor Riad Salameh filed charges against unknown individuals who had forged his signature on two documents, one of which approved a merger and another dealing with a $170 million transfer of funds. Other high-profile scandals involved a prominent businessman who passed a fraudulent check for $100,000 and shady real estate deals.

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