Latest news with #ArabInvestmentandExportCreditGuaranteeCorporation
Zawya
20-03-2025
- Business
- Zawya
The state of the Arab economy in the next phase
Despite the wars and conflicts affecting Arab economies—especially the recent violent and destructive war in Gaza and other Arab countries—some economic indicators in the region continue to show remarkable growth. However, this progress is overshadowed by rising unemployment rates and increasing job layoffs across Arab nations. The Arab Investment and Export Credit Guarantee Corporation reported that the Arab region's GDP grew by 1.8% last year, surpassing $3.5 trillion. This growth occurred despite numerous challenges, including ongoing conflicts in Gaza, Lebanon, and Syria, as well as external pressures on the Arab oil and gas sectors. Recent data indicate that economic growth is concentrated in several key Arab countries, particularly Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which collectively account for over 72% of the region's total GDP. Looking ahead, the Arab economy is expected to expand further, with a projected growth rate of 4.1% in 2025. This positive outlook is primarily driven by 14 Arab countries, including nine oil-producing economies, which contribute more than 78% of the region's GDP. The growth stems from improved revenues in the oil and gas sectors, as well as increased production of goods and services, despite external policies—such as those implemented by former U.S. President Donald Trump—that aimed to suppress oil prices and challenge Arab economic reliance on these industries. According to the International Monetary Fund, Arab economic performance varied in the past year due to a 4% decline in crude oil production and a 1% drop in global oil prices. Additional factors impacting the region include the widening conflict in Gaza, Lebanon, Yemen, Syria, and Iraq, the ongoing war in Sudan, climate change, and rising external debt. Despite these challenges, economic data show an improvement in per capita GDP across Arab countries, rising by 1.2% to $7,557 in 2024. Projections suggest a further 1% increase, bringing the average to $7,602 in 2025. When adjusted for purchasing power parity, per capita GDP rose by 2%, reaching approximately $19,000 in 2024. However, substantial economic disparities persist across the region. The Arab region's population grew by 2%, surpassing 467 million in 2024. However, unemployment remains a pressing concern, with the average jobless rate reaching 9.7%—a worrying indicator for future economic stability. On the issue of debt, Arab nations continue to seek external loans to service financial obligations. In 2024, government debt as a percentage of GDP declined to 48.3%, with projections suggesting a further decrease to 47.6% by the end of 2025. Conversely, external debt rose to approximately 56% of Arab GDP in 2024, with expectations of a slight decline to 54.5% in 2025. Meanwhile, Arab countries are working toward reducing inflation rates, leveraging budget surpluses, enhancing foreign trade value, and expanding foreign currency reserves. These efforts aim to strengthen economic resilience and ensure the region can sustain imports of goods and services for extended periods in the coming years. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
19-03-2025
- Business
- Observer
The state of the Arab economy in the next phase
Despite the wars and conflicts affecting Arab economies—especially the recent violent and destructive war in Gaza and other Arab countries—some economic indicators in the region continue to show remarkable growth. However, this progress is overshadowed by rising unemployment rates and increasing job layoffs across Arab nations. The Arab Investment and Export Credit Guarantee Corporation reported that the Arab region's GDP grew by 1.8% last year, surpassing $3.5 trillion. This growth occurred despite numerous challenges, including ongoing conflicts in Gaza, Lebanon, and Syria, as well as external pressures on the Arab oil and gas sectors. Recent data indicate that economic growth is concentrated in several key Arab countries, particularly Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which collectively account for over 72% of the region's total GDP. Looking ahead, the Arab economy is expected to expand further, with a projected growth rate of 4.1% in 2025. This positive outlook is primarily driven by 14 Arab countries, including nine oil-producing economies, which contribute more than 78% of the region's GDP. The growth stems from improved revenues in the oil and gas sectors, as well as increased production of goods and services, despite external policies—such as those implemented by former U.S. President Donald Trump—that aimed to suppress oil prices and challenge Arab economic reliance on these industries. According to the International Monetary Fund, Arab economic performance varied in the past year due to a 4% decline in crude oil production and a 1% drop in global oil prices. Additional factors impacting the region include the widening conflict in Gaza, Lebanon, Yemen, Syria, and Iraq, the ongoing war in Sudan, climate change, and rising external debt. Despite these challenges, economic data show an improvement in per capita GDP across Arab countries, rising by 1.2% to $7,557 in 2024. Projections suggest a further 1% increase, bringing the average to $7,602 in 2025. When adjusted for purchasing power parity, per capita GDP rose by 2%, reaching approximately $19,000 in 2024. However, substantial economic disparities persist across the region. The Arab region's population grew by 2%, surpassing 467 million in 2024. However, unemployment remains a pressing concern, with the average jobless rate reaching 9.7%—a worrying indicator for future economic stability. On the issue of debt, Arab nations continue to seek external loans to service financial obligations. In 2024, government debt as a percentage of GDP declined to 48.3%, with projections suggesting a further decrease to 47.6% by the end of 2025. Conversely, external debt rose to approximately 56% of Arab GDP in 2024, with expectations of a slight decline to 54.5% in 2025. Meanwhile, Arab countries are working toward reducing inflation rates, leveraging budget surpluses, enhancing foreign trade value, and expanding foreign currency reserves. These efforts aim to strengthen economic resilience and ensure the region can sustain imports of goods and services for extended periods in the coming years. The writer is a Muscat-based economic analyst who previously worked for CBO and OCCI
Shafaq News
17-03-2025
- Business
- Shafaq News
Iraq, four Arab nations dominate 70% of regional GDP in 2024
Shafaq News/ Iraq, along with four other Arab nations, accounted for more than 70% of the Arab world's GDP, which exceeded $3.6 trillion in 2024, marking a 1.8% increase from the previous year. According to the fourth quarterly report of 2024 by the Arab Investment and Export Credit Guarantee Corporation (Dhaman), the bulk of the region's economic output was concentrated in Iraq, the UAE, Saudi Arabia, Egypt, and Algeria. Projections for 2025 estimate 4.1% economic growth across the Arab region, driven by expansion in 14 countries, including nine oil-producing nations that contribute 78% of total GDP. Despite disparities in per capita income across Arab nations, an analysis of total GDP relative to population suggests that the theoretical average income per capita reached $7,557 in 2024, with a projected 1% rise to $7,602 in 2025. The Arab population surpassed 467 million in 2024, reflecting 2% growth, while unemployment climbed to 9.7%. Inflation rose to 12%, though forecasts suggest a decline to 8.5% in 2025. Government debt saw a slight decline to 48.3% of GDP, with further reduction expected to 47.6% next year. Arab foreign trade in goods and services expanded by 3.6%, exceeding $3.3 trillion in 2024. Exports grew 1%, while imports rose at a higher rate of 7%.
Jordan Times
17-03-2025
- Business
- Jordan Times
Arab GDP grows by 1.8% in 2024, forecast to reach 4.1% in 2025 — Dhaman
AMMAN — The Kuwait-based Arab Investment and Export Credit Guarantee Corporation (Dhaman) reported that the pan-Arab GDP grew by 1.8 per cent in 2024, surpassing $3.5 trillion despite regional challenges. Dhaman highlighted that economic activity remained concentrated in Saudi Arabia, the United Arab Emirates, Egypt, Iraq, and Algeria, which together accounted for more than 72 per cent of the region's total GDP, the Jordan News Agency, Petra, reported. The corporation projected a positive outlook for the Arab economy in 2025, forecasting a 4.1 per cent growth rate. This expansion is expected to be driven by 14 Arab economies, including nine oil-producing countries that collectively contribute over 78 per cent of Arab GDP. The forecast is based on "cautious" optimism regarding a potential easing of regional instability and improved revenues from oil, gas, goods, and services. Citing International Monetary Fund estimates, Dhaman noted that Arab economic indicators diverged in 2024 due to a 4 per cent decline in crude oil production and a 1 per cent drop in global oil prices. Additional factors included the expansion of the war on Gaza into Lebanon, Yemen, Syria, and Iraq, the ongoing armed conflict in Sudan, climate change, and rising external debt. According to data published in the fourth quarterly bulletin of 2024 (Investment Guarantee), per capita GDP in the Arab region increased by 1.2 per cent to $7,557, with a projected rise to $7,602 in 2025. Based on purchasing power parity, per capita GDP grew by 2 per cent to some $19,000, though significant disparities remain among Arab countries. The Arab population grew by 2 per cent in 2024, exceeding 467 million people, while the region's unemployment rate climbed to 9.7 per cent. Meanwhile, consumer price inflation reached 12 per cent last year, with expectations of a decline to 8.5 per cent in 2025. Fiscal deficits deepened, with the Arab budget surplus of $15 billion in 2023 turning into a $58 billion deficit in 2024. The deficit is projected to widen further to $68 billion this year, equating to about 2 per cent of GDP. Arab debt indicators shifted in 2024, as the government debt-to-GDP ratio declined to 48.3 per cent, with expectations of a further decrease to 47.6 per cent by the end of 2025. The external debt ratio increased to nearly 56 per cent of GDP, with a forecast decline to 54.5 per cent this year. Arab foreign trade in goods and services expanded by 3.6 per cent in 2024, exceeding $3.3 trillion, Dhaman said. Exports rose by 1 per cent, while imports grew by more than 7 per cent, leading to a 33 per cent reduction in the region's trade surplus, which stood at $177 billion. The Arab current account surplus shrank by 51 per cent to $89 billion in 2024, representing 2.5 per cent of GDP. This figure is expected to drop further to $47 billion in 2025, reducing its share of GDP to 1.3 per cent. Arab foreign exchange reserves increased by 3.7 per cent to almost $1.2 trillion, providing coverage for more than eight months of imports, the corporation added, noting that this coverage is expected to slightly decline in 2025 despite a projected 1.2 per cent increase in total reserves. Established in 1974 and headquartered in Kuwait, Dhaman is a multilateral institution comprising all Arab countries and four joint Arab financial institutions. It provides insurance services against credit and political risks to facilitate foreign direct investment in Arab economies and support regional trade.
Arab News
16-03-2025
- Business
- Arab News
Arab region's GDP climbs 1.8% to $3.6tn in 2024 despite challenges
RIYADH: The Arab region's gross domestic product increased by 1.8 percent, reaching $3.6 trillion in 2024, despite facing regional challenges, according to new data. The report, released by the Arab Investment and Export Credit Guarantee Corporation or Dhaman, showed that growth was primarily concentrated in Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which together accounted for over 72 percent of the region's total GDP, as reported by the Kuwait News Agency. This aligns with Moody's January forecast that oil production and major investment projects will drive a 0.8 percentage point increase in annual economic growth across the Middle East and North Africa in 2025. It also corresponds with Moody's projection of 2.9 percent growth for the region in 2025, up from 2.1 percent in 2024, while maintaining a stable outlook on the region's sovereign credit fundamentals for the next 12 months. The data also indicated positive outlooks for the Arab economy's performance in 2025, with an expected growth rate of 1.4 percent. This growth is likely to be driven by expansion in 14 Arab countries, including nine oil-producing economies that together contribute more than 78 percent of Arab GDP. There is cautious optimism surrounding the potential reduction in regional unrest and conflicts, along with an expected improvement in revenues from oil, gas, and exports of goods and services produced by the region. In January, Moody's emphasized that the impact of large investments in 2025 will be most evident in Saudi Arabia, driven by significant government and sovereign wealth fund spending related to the Vision 2030 diversification program. Moody's also noted that the pick-up in the MENA economy will be primarily fueled by stronger growth among hydrocarbon exporters, as a result of the partial unwinding of strategic oil production cuts under the OPEC+ agreement. According to Moody's, real GDP growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in 2024. This boost will be driven by countries like Saudi Arabia, the UAE, Iraq, Kuwait, and Oman easing the oil production cuts implemented in 2023.
