Commercial banks dominant financial system,but state-owned shares still account for a large proportion of bank ownership structure.Bank credit is booming ,but the proportion of SME financing remains low.Capital market is underdeveloped,mainly indirect financing.The article also describes the Islamic Finance of Arab countries,notes that Gulf countries have become islamic financial centre of the world.International Financial Crisis had a severe impact on Middle East economy and financial system.Financial cooperation between China and Middle East has just begun. <<