Yes, it did. The First World War fundamentally changed the course of Middle Eastern history. Under the secret Sykes-Picot treaty, the Ottoman Empire was partitioned by Britain, France and Russia. Modern Iraq, Jordan and the Hedjaz (the western strip of the Arabian peninsula home to Mecca and medina) were designated as British zones, while France was to have modern Syria, Lebanon and Southern Turkey (it lost influence of the latter very quickly however). Russia was promised parts of Turkey that would have extended its reach towards the Mediterranean but after the Russian revolution, this fell through. Meanwhile, the British acknowledged the Jews a homeland in Palestine and they vaguely promised Hussein, Sharif of Mecca dominion over all the lands rightfully his. Hussein envisaged an Arab state inclusive of portions which the French and British had parcelled out between themselves. After the end of the war, these conflicting promises had to be made effective and the solutions found formed the bedrock of Middle Eastern statehood and politics to the present.

Palestine came under Britain's mandate and immediately saw major immigration of Jewish populations, which increased throughout the interwar period. France formed the state of Lebanon as a way of having a Christian-majority state in the ME. Syria, which Faisal, son of the Sharif, had made his kingdom at the end of the war, was turned into a republic once the French had ran Faisal out; the British gave him the Kingdom of Iraq as a consolation prize. They put his brother on the throne of a new state called Transjordan. (These were not states in fact but 'mandates', which Britain and France had granted themselves authority over in the Treaty of Sevres).

Meanwhile, the Sultan of Nejd, Abdulaziz 'Ibn Saud' Al Saud, a brilliant statesman, politician and military leader in his own right, had been empowered by British subsidies during WW1. He set about extending his realm - Hussein of Mecca, now King of Hedjaz, mismanaged his affairs as a religious leader (raised and educated in the courts of Istanbul, Hussein's Mecca was something of a sinful place by religious orthodox standards, with alcohol easily accessible). Ibn Saud conquered Hedjaz in 1926, to Britain's impotence (Britain, which had a major Muslim population in its Indian empire, could not afford to back Hussein, who had lost religious legitimacy).

In Iraq, Syria, Lebanon and Palestine, an Arab nationalism influenced by the fragmentation of the Ottoman Empire and the new colonial reality quickly gained currency. In Iraq, the new King Faisal was a foreigner with no local support. He adopted pan-Arab nationalist ideology as an inclusive ideology which not only could unite Iraqis with the Hedjazi dynasty. He also harboured dreams of reestablishing his short lived dominion over Syria, so an Iraqi nationalism was not beneficial to him. Syria and Palestine, which suffered bloody revolts and the latter of which was subjected to major demographic change both produced new Arab nationalists, while Christian Lebanese and Baghdadi Jews were among its first ideologues (the Baghdadi Jews tragically became victims of the ideology, as anti-Zionism developed into a core feature of pan-Arabism and lay Muslims failed to distinguish Jewish Arabs form European Zionists). One of the major proponents was Sati' Al-Husri, an ex-Ottomanist (the proto-nationalism endorsed by the Ottoman empire) and pedagogue, who wrote the curriculums of Iraq's first public schools. In Iraq, pan-Arabism was permeated through all aspects of the school and military systems.

Ethnic minorities suffered as a result of this policy, particularly the Kurds in Northern Iraq, who had been vaguely promised statehood in the treaty of Sevres. The British quickly changed their mind on this, and British and Iraqi governmental policy through the 1920s sought to dismantle Kurdish separatism. The Pan-Arab policy was non-inclusive, and they were never completely integrated, though Kurds were played important roles in Baathist and communist parties in the mid-50s.

This is just a brief overview. You are right that Egypt went through some amazing changes but I don't know enough to go into it. Britain and France dominated just about every part of the Middle East, except central Arabia and the effects are still felt today.