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Preliminary calculations indicate that western Gulf intertidal mud and sand flat habitats such as those found in Kuwait may contribute some 30 percent of the gross marine productivity for this state, more than double that of any other intertidal biotope. Mud flats are dominated by a microbial mat system; recent application of the stable isotope ratio technique confirms a link between mat production and commercial fish and shrimp species. These findings demonstrate the importance of intertidal productivity so that dredging and coastal reclamation represent one of the most serious impacts on the Gulf environment. In addition, Gulf fish stocks are now fully exploited and many Gulf countries are placing further stress on coastal ecosystems through the development of aquaculture. Most of these countries now have coastal management plans with zoning of areas for conservation, recreation and development and future planning prioritization should ensure sustainability of marine biodiversity, fisheries, aquaculture, aesthetic and recreational values for coastal habitats during development. Recent coastal construction projects in Qatar, Bahrain, Saudi Arabia and Kuwait demonstrate that even within development zones it is possible to mitigate impact and even expand areas of marine productivity. Key factors are multidisciplinary approaches to design, which promote good water circulation, avoid stagnation, prevent salinity rise due to evaporation and sustain water of bathing quality. It is suggested that artifically created lagoons and waterways could be managed to provide nursery areas suitable for fishery stock enhancement.