I've heard the following books recommended as good starting points for understanding the history and context of the Middle East by a scholar who recently visited the Mount Allison campus (I forget his name!) and by Edward Said (in a Harper's review last summer). In other words, consider these before picking up anything by Bernard Lewis:
Colonising Egypt, by Timothy Mitchell
The Call from Algeria: Third Worldism, Revolution, and the Turn to Islam, by Robert Malley
The Venture of Islam: Conscience and History in a World Civilization, by Marshall Hodgson
Islam and Modernities, by Aziz Al-Azmeh
Classical Arab Islam: The Culture and Heritage of the Golden Age, by Tarif Khalidi
And Ken Wiwa (one of a very small number of decent Globe and Mail columnists and son of Ken Saro Wiwa, the Nigerian activist murdered by the Nigerian government at the behest of Shell) mentioned this book when he gave a talk here the other night:
The Corporate Planet: Ecology and Politics in the Age of Globalization by Josh Karliner
And right now, I'm reading:
People before Profit: Globalization in an Age of Terror, Big Money, and Economic Crisis, by Charles Derber
Empire, by Michael Hardt and Antonio Negri
Steps to and Ecology of Mind, by Gregory Bateson
Prometheus Wired: The Hope for Democracy in the Age of Network Technology, by Darin Barney
Phenomenology of Spirit, by G W F Hegel
Foucault, by Gilles Deleuze
The SCUM Manifesto, by Valerie Solanas
Development as Freedom, by Amartya Sen
And here's a review of Friedman's Lexus and the Olive Tree, just for fun.
I've been recommending William Polk's The Arab World Today.
I am reading The Human Web: A Bird's-Eye View of World History by J.R McNeill & William H. McNeill, father and son, both professors. It's not just the history of the region, obviously, but it's a good synopsis of the human being throughout our earthly existence including pre-historical times. It's good to remind ourselves from whence we have sprung and how.