Economy of the Arab League
Encyclopedia
The Arab League
is rich in resources, with enormous oil and natural gas reserves. It also has great fertile lands in the south of Sudan
, an area usually referred to as the food basket of the Arab World
. The region's instability has not affected its tourism industry, which is considered the fastest growing sector in the region, with Egypt
, the UAE, Lebanon
, Tunisia
and Jordan
leading the way. Another industry that is growing steadily in the Arab League is telecommunications. Within less than a decade, local companies such as Orascom and Etisalat have managed to successfully compete internationally as global power players.
Economic achievements among member states have been low in the League's history. Other smaller Arab organizations, such as the GCC, have achieved more than the League has. However, lately there has emerged several major economic projects that slated to be completed soon that appear promising. Of these, the Arab Gas Pipeline
, a project which hopes to funnel Egyptian and Iraqi gas to Jordan, Syria
and Lebanon
, and then to Turkey
and Europe
, is scheduled to reach completion by the year 2010. The GAFTA free trade agreement is to be completed by the January 1, 2008, effectively rendering 95% of all Arab
products free of customs tax.
The economic development in the Arab League
exhibits a great diversity. There is a significant difference between, on the one hand, the rich oil states of the UAE, Qatar
, Kuwait
, and Bahrain
, and on the other hand, the poor countries like the Comoros
, Mauritania
and Djibouti
. For instance, the GDP per capita of the wealthiest Arab Country and the wealthiest in the world, Qatar
, is 73 times higher than that of Mauritania.
This following table lists the gross domestic product
(GDP) of the Arab League and its member states based on purchasing power parity
(PPP) and measured in US dollars. If not indicated otherwise, the figures are based on the 2007 data published by the International Monetary Fund
, World Economic Outlook Database, in April 2008.
Notes:
Arab League
The Arab League , officially called the League of Arab States , is a regional organisation of Arab states in North and Northeast Africa, and Southwest Asia . It was formed in Cairo on 22 March 1945 with six members: Egypt, Iraq, Transjordan , Lebanon, Saudi Arabia, and Syria. Yemen joined as a...
is rich in resources, with enormous oil and natural gas reserves. It also has great fertile lands in the south of Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...
, an area usually referred to as the food basket of the Arab World
Arab world
The Arab world refers to Arabic-speaking states, territories and populations in North Africa, Western Asia and elsewhere.The standard definition of the Arab world comprises the 22 states and territories of the Arab League stretching from the Atlantic Ocean in the west to the Arabian Sea in the...
. The region's instability has not affected its tourism industry, which is considered the fastest growing sector in the region, with Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
, the UAE, Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
, Tunisia
Tunisia
Tunisia , officially the Tunisian RepublicThe long name of Tunisia in other languages used in the country is: , is the northernmost country in Africa. It is a Maghreb country and is bordered by Algeria to the west, Libya to the southeast, and the Mediterranean Sea to the north and east. Its area...
and Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
leading the way. Another industry that is growing steadily in the Arab League is telecommunications. Within less than a decade, local companies such as Orascom and Etisalat have managed to successfully compete internationally as global power players.
Economic achievements among member states have been low in the League's history. Other smaller Arab organizations, such as the GCC, have achieved more than the League has. However, lately there has emerged several major economic projects that slated to be completed soon that appear promising. Of these, the Arab Gas Pipeline
Arab Gas Pipeline
The Arab Gas Pipeline is a natural gas pipeline in the Middle East. It exports Egyptian natural gas to Jordan, Syria and Lebanon, with a separate line to Israel. It has a total length of at a cost of US$1.2 billion.-Arish–Aqaba section:...
, a project which hopes to funnel Egyptian and Iraqi gas to Jordan, Syria
Syria
Syria , officially the Syrian Arab Republic , is a country in Western Asia, bordering Lebanon and the Mediterranean Sea to the West, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest....
and Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
, and then to Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, is scheduled to reach completion by the year 2010. The GAFTA free trade agreement is to be completed by the January 1, 2008, effectively rendering 95% of all Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...
products free of customs tax.
The economic development in the Arab League
Arab League
The Arab League , officially called the League of Arab States , is a regional organisation of Arab states in North and Northeast Africa, and Southwest Asia . It was formed in Cairo on 22 March 1945 with six members: Egypt, Iraq, Transjordan , Lebanon, Saudi Arabia, and Syria. Yemen joined as a...
exhibits a great diversity. There is a significant difference between, on the one hand, the rich oil states of the UAE, Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
, Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
, and Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
, and on the other hand, the poor countries like the Comoros
Comoros
The Comoros , officially the Union of the Comoros is an archipelago island nation in the Indian Ocean, located off the eastern coast of Africa, on the northern end of the Mozambique Channel, between northeastern Mozambique and northwestern Madagascar...
, Mauritania
Mauritania
Mauritania is a country in the Maghreb and West Africa. It is bordered by the Atlantic Ocean in the west, by Western Sahara in the north, by Algeria in the northeast, by Mali in the east and southeast, and by Senegal in the southwest...
and Djibouti
Djibouti
Djibouti , officially the Republic of Djibouti , is a country in the Horn of Africa. It is bordered by Eritrea in the north, Ethiopia in the west and south, and Somalia in the southeast. The remainder of the border is formed by the Red Sea and the Gulf of Aden at the east...
. For instance, the GDP per capita of the wealthiest Arab Country and the wealthiest in the world, Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
, is 73 times higher than that of Mauritania.
List of member states by GDP (PPP)
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
(GDP) of the Arab League and its member states based on purchasing power parity
Purchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
(PPP) and measured in US dollars. If not indicated otherwise, the figures are based on the 2007 data published by the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
, World Economic Outlook Database, in April 2008.
| Country | GDP (PPP) US$M | GDP (PPP) US$ per capita |
|---|---|---|
 Arab League |
2,765,867 | 7,682 |
| 618,744 | 23,701 | |
| 496,604 | 6,347 | |
| 252,189 | 7,104 | |
| 193,150 | 5,866 | |
| 182,876 | 40,175 | |
| 140,589 | 38,984 | |
| 111,500 | 3,570 | |
| 105,238 | 5,043 | |
| 102,147 | 90,149 | |
| 98,926 | 2,464 | |
| 96,138 | 14,884 | |
| 86,086 | 8,254 | |
| 74,431 | 25,109 | |
| 58,576 | 14,988 | |
| 58,218 | 2,457 | |
| 35,300 | 5,956 | |
| 28,275 | 27,214 | |
 State of Palestine |
11,950 | 2,900 |
| 6,326 | 2,037 | |
| 5,731 | 600 | |
| 2,101 | 2,549 | |
| 772 | 1,159 |
| Country/Organization | GDP (PPP) US$M | GDP (PPP) US$ per capita |
|---|---|---|
| 64,903,263 | 10,060 | |
 European Union |
14,712,369 | 30,521 |
 United States |
13,843,825 | 45,845 |
 People's Republic of China |
6,991,036 | 5,292 |
 Japan |
4,289,809 | 33,577 |
 India |
2,818,867 | 2,659 |
| Arab League |
2,765,867 | 7,682 |
 Russia |
2,087,815 | 14,692 |
Notes:
- The IMFInternational Monetary FundThe International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
source does not provide data for the compound Arab League. The total GDP figure has been calculated as the sum of the GDPs of the member states. The per capita value is derived on the basis of the population stated in the infobox. - The IMFInternational Monetary FundThe International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
source does not provide data for this country. The reported figures are taken from a 2007 estimate of the CIA published in the CIA factbook. For Palestine, a 2006 estimate was retrieved from the same source which is published as "West Bank (includes Gaza Strip)".
External links
- http://www.arableagueonline.org/las/arabic/details_ar.jsp?art_id=124&level_id=110
- http://www.amf.org.ae/venglish/
- Full text of the Agadir Agreement (English version)
- The Agadir Agreement and Open regionalism by Steffen Wippel