KUWAIT, Dec 1 (KUNA) -- The Arab Investment and Export Credit Guarantee Corporation (Dhaman) stated on Monday that the Arab GDP will grow by 5.6 percent to reach around USD 4 trillion by 2026, driven by expected growth in 19 Arab economies, including eight oil-exporting countries that account for more than 70 percent of the total Arab GDP.
In a press release on the occasion of the issuance of its fourth quarterly bulletin, "Dhaman Al-Istithma 2025," Dhaman noted that Arab GDP reached about USD 3.8 trillion in 2025, up 1.7 percent despite regional geopolitical challenges, with Saudi Arabia, the UAE, Egypt, Algeria, and Iraq representing nearly 73 percent of the total.
The International Monetary Fund's estimates showed that Arab economic performance indicators were generally mixed during 2025 due to lower average oil prices and ongoing geopolitical and economic challenges. According to purchasing power parity, Arab GDP rose 6.1 percent to exceed USD 9.8 trillion, with projections to surpass USD 10 trillion in 2026.
GDP per capita slightly declined by 0.3 percent to USD 7,806 in 2025 but rose 4 percent by PPP, exceeding USD 20,000, reflecting wide disparities between oil-rich and lower-income countries.
The regional unemployment rate fell to 9.4 percent in 2025 and is expected to drop further to 9.2 percent in 2026, while inflation decreased to 10.3 percent and is projected at 8.1 percent next year.
Dhaman highlighted an improvement in annual average exchange rates for seven Arab currencies against the US dollar, including those of Tunisia, Qatar, UAE, Morocco, Algeria, Djibouti, and Syria.
The aggregate Arab budget deficit rose 53 percent to USD 95 billion in 2025, representing 2.5 percent of GDP, influenced by a 13 percent drop in oil prices, averaging USD 69 per barrel, with a slight decline expected in 2026 to USD 94.5 billion.
Total investments in 14 Arab countries increased 5.2 percent to USD 864 billion in 2025, representing 27.3 percent of their GDP, with projections to exceed USD 910 billion in 2026.
Debt indicators showed government debt at 46.2 percent of GDP in 2025, expected to rise above 47 percent in 2026, while external debt reached 54.6 percent, with a slight increase expected next year.
Arab foreign exchange reserves grew 3.4 percent to USD 2.1 trillion, covering roughly 5.5 months of imports, and are expected to rise 2.5 percent in 2026, covering 5.7 months of imports.
Dhaman is a joint Arab entity owned by Arab states and four Arab financial institutions. It was established in 1974 and is headquartered in Kuwait. (end) ht.dss