Arab GDP to reach $4tn by 2026 as inflation and unemployment fall in the region
The Arab Gross Domed Product (GDP) increased by 1.7 percent to reach about $ 3.8tn in 2025 in 2025, despite the ongoing geopolitical tensions, according to the Arab Investment and Export Curnere Guantual Corporation (Dhaman).
The economic weight of the region remains geographically concentrated, with Saudi Arabia, the UAE, Egypt, Algeria and Iraq accounting for approximately 73 percent of the total Arab GDP.
The organization said its economic performance forecast for 2026 is generally optimistic. The Arab GDP is expected to increase by 5.6 percent around $ 4tn, supported by the growth expected in 19 Arab countries, including eight economies of the Region’s GDP.
Arab GDP growth
This idea is driven by the expectation of reducing regional conflicts, improving economic conditions and increasing profits from building types and exports.
Dhaman noted that international financial forecasts show mixed performance in the Arab economy in 2025 due to the decline in global oil prices, ongoing geopolitical and economic and social pressures.
The amount of Arab GDP based on the purchase of renewable energy produced by 6.1 percent to exceed $ 9.8tn in 2025 and is expected to exceed $ 10tn in 2026 in 2026 in 2026 in 2026 in 2026.
The GDP per capita in the Arab countries saw a slight decrease of 0.3 percent to $ 7,806 in 2025, despite the 4 percent falling to $ 20,000 when measured by purchasing power of $ 20,000 when measured by purchasing power.
The organization highlighted the continuing diversity between oil producing countries and developing economies.
Arab unemployment rates
The average level of unemployment has decreased to 9.4 percent in 2025, with the expectation of a further decrease to 20.2 percent in 2026 in the region of 2026 and is expected to fall to 20.6 percent.
Currency performance varies across the region. The annual exchange rate of the seven Arab Curren Currenseries – Tunisia, Qatar, UAE, Morocco, Djibouti and Syria – developed against the US dollar in 2025. Six currencies remained stable, while other currencies continued to strengthen.
Arab government budgets are under pressure, with a combined deficit of 53 percent to $95bn in 2025, equivalent to 2.5 percent of the region’s GDP.
This is said to have included 13 percent in global oil prices to $69 per barrel during the year. The deficit is expected to narrow slightly to $94.5bn in 2026.
Arab investment
Investment activity remained strong. Total Investments in the 14 Arab countries increased by 14 percent to around $864bn in 2025 – equivalent to 27.3 percent of their GDP. This investment is forecast to grow by 5.4 percent to reach $910bn in 2026.
Credit ratings are deteriorating significantly. Government debt to GDP has increased by 46.2 percent in 2025 and is expected to exceed 47 percent in 2026. The foreign debt increased to 20.6 percent, which increased by 20.7 percent and predicted 2026 percent.
The current account of the Arab has decreased significantly by 47 percent to $ 63bn in 2025, which represents 1.7 percent of GDP. It is expected to decrease by $41.5bn, representing 1 percent of GDP, by 2026.
Foreign exchange in the region has increased by 3.4 percent to about $ 1.2tn by 202TN in 2025, enough to cover about 5.6 months of sales of services. Reserves increased by 2.5 percent in the year 2026, with import coverage growing slightly in 5.7 months.
