Arab GDP value projected to hit $4 trillion in '26: Dhaman

The Arab Investment & Export Credit Guarantee Corporation (Dhaman) revealed that the value of Arab gross domestic product (GDP) rose by 1.7 per cent to hit roughly $3.8 trillion in 2025 despite regional geopolitical challenges, with its geographical concentration continuing in Saudi Arabia, UAE, Egypt, Algeria and Iraq with a share of nearly 73 per cent of the region's total.

- 

In a press release on the occasion of the issuance of its fourth quarterly bulletin “Dhaman Al Istithmar” for 2025, the Corporation explained that Arab economic performance forecasts were generally positive for 2026, with an expected rise of 5.6 per cent the value of Arab GDP to around $4 trillion, driven by a potential growth of the GDP in 19 Arab countries, including eight oil economies that contribute over 70 per cent of the Arab GDP. This comes amidst guarded optimism that the region's unrest and conflicts are set to ease, the economic situation to improve, and benefits of structural reforms and merchandise and service exports to rise.

The Corporation said that IMF forecasts show that Arab economic performance indicators were generally mixed during 2025 due to declining global oil prices, continued geopolitical risks in the region and mounting economic and social risks.

The value of the Arab GDP, according to purchasing power parity, surged by 6.1 per cent to exceed $9.8 trillion, and is expected to keep rising to exceed $10 trillion in 2026.

A slight decline in the GDP per capita in Arab countries by 0.3 per cent down to $7,806 during 2025, compared to a 4 per cent hike, according to purchasing power parity, to exceed $20,000 amid the continued large disparity between oil-producing countries and lower-income ones.