This study discusses the institutional legacy of economic liberalization policies in shaping the contemporary reality of civil-military relations in Arab Spring states, and the future challenges of democratic transformation in these countries. It argues that economic openness through the application of liberalization policies has led to the emergence of a military oligarchy operating under a civilian cover, formally extending the dominance of the Arab armies from the political to the economic sphere. The outcome of this dynamic was the consolidation of the positions and political dominance of the military, which poses great challenges to the future of democratic transition in these countries. The study reviews its hypothesis through the cases of Egypt, Tunisia, Sudan and Algeria, and draws analytical comparisons between them.