A recent report from the Arab Investment Institution and Credit, “Warranty,” has revealed that five Arab nations, including Iraq, accounted for a substantial 72% of the Arab GDP, which exceeded $3.6 trillion in 2024. This marks an increase of 1.8% compared to 2023.
The fourth quarterly bulletin from the institution highlights that the United Arab Emirates, Saudi Arabia, Egypt, Iraq, and Algeria are the leading contributors to the Arab GDP.
The report forecasts a growth rate of 4.1% for the Arab economy in the current year, bolstered by positive performances across 14 Arab countries, including nine oil-exporting nations that contribute approximately 78% of the total Arab GDP.
Despite economic challenges, the report emphasizes the improvement of revenues from oil and gas exports. However, it also notes a 4% decline in crude oil production and a disparity in growth indicators among Arab nations.
Iraq remains a key player in the Arab GDP landscape, heavily reliant on oil exports. The nation’s economic strategy aims to diversify income sources and stimulate investments across various productive sectors.
The average individual income in the Arab region was recorded at about $7,557 for the past year, with expectations for a modest increase of 1% to reach $7,602 in 2025. The population of the Arab countries surpassed 467 million, with a growth rate of 2%.
Inflation in the Arab region experienced an uptick to 12% last year, but forecasts suggest a decline to 8.5% in the current year. Additionally, the unemployment rate rose to 9.7%.
Arab foreign trade has expanded by 3.6%, exceeding $3.3 trillion, driven by a 1% increase in exports compared to a 7% rise in imports.
Furthermore, foreign currency reserves within Arab nations have grown by 3.7%, now totaling $1.2 trillion, which provides ample coverage for imports lasting more than eight months.
The percentage of government debt in the Arab region has decreased to 48.3% of GDP, with projections indicating a further reduction to 47.6% in the ongoing year.