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The term "Middle East" refers to the region including Western Asia, Eastern Europe, the Gulf nations, and Northern Africa. It includes the Arab countries, Israel and Turkey. Other countries in the region include Afghanistan, Bahrain, Cyprus, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Qatar, Saudi Arabia and United Arab Emirates. It has a rich history. This region is the birthplace of both Christianity and Islam, and the cradle of many great ancient civilizations. In modern times, the region is better known as the world's leading source of crude oil, and as a place of constant political conflict and turmoil.
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UC Berkeley Campus News: George Akerlof Wins Nobel Prize in Economics
http://www.berkeley.edu/news/features/2001/nobel/index.html