RIYADH: The Arab region’s economy is forecast to expand to $4 trillion in 2026, rising 5.6 percent from the previous year as 19 countries contribute to the growth, a new assessment showed.
According to the Arab Investment and Export Credit Guarantee Corp., known as Dhaman, regional output climbed 1.7 percent in 2025 to about $3.8 trillion, despite geopolitical tensions and uneven global conditions, as reported by the Emirates News Agency, WAM.
This economic output remained highly concentrated, with five nations, — Saudi Arabia, the UAE, and Egypt, as well as Algeria and Iraq — collectively accounting for nearly 73 percent of the regional total.
The outlook is underpinned by a guarded optimism that regional unrest may ease, the economic situation will improve, and the benefits of structural reforms and rising merchandise and service exports will materialize.
“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 WAM report stated.
