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This article highlights existing threat perceptions in the Arab world, with a special emphasis on the Gulf region in order to determine who the oil-rich states are attempting to deter through their steady buildup of arms since the mid eighties. Based on interviews with Middle Eastern policy makers and experts, this article concludes that GCC States have their own distinct threat perceptions. In addition to terrorism, proliferation of ballistic missiles and weapons of mass destruction constitute the main sources of threat to Gulf countries. The signing of defense pacts with Western powers, and the possession of an advanced high-tech arsenal of conventional weapons and contemplating the deployment of a regional missile defense shield seem to be means to develop a powerful deterrent to protect GCC states against threats from the north and the east. [ABSTRACT FROM AUTHOR]