Will Jeddah summit pave the way for Arab economies to prosper? 
Saudi Arabia hosted the Arab League Summit in Jeddah on May 19. It is widely believed that this summit marked the beginning a new era for enhanced cooperation and solidarity between Arab countries.
The summit differed from those held since the inception of the League of Arab States in 1945, because all 22 Arab countries attended, including Syria, welcomed back to the league after a 12-year suspension.
More importantly — since the majority of the problems that have occurred between Arab countries have been caused by external interventions — the Kingdom paved the way for the summit to be held in favorable political circumstances, away from external influences.
Saudi diplomacy — led by Crown Prince Mohammed bin Salman, who is pursuing regional rapprochement —supported the summit’s success, especially since the Crown Prince has succeeded in restoring the political relationship with Iran, helped to end the Kingdom’s longstanding war with rebels in Yemen, and assisted the return of Syria to the Arab League.
I believe that the success of the Jeddah Summit should pave the way for the Arab world’s economy to prosper, especially since the 22 Arab countries have all the economic means and natural resources necessary to develop their economy. This includes, but is not limited to, manpower and natural resources such as oil, gas, water, minerals, and fertile agricultural lands.
I believe that the success of the Jeddah summit should pave the way for the Arab world’s economy to prosper, especially since the 22 Arab countries have all the economic means and natural resources necessary to develop their economy.
The Joint Arab Economic Report 2022, published by the Arab Monetary Fund, indicated that Arab countries witnessed a relative improvement in their economic performance during 2021 compared to 2020. This is because many countries started to recover from the effects of the COVID-19 pandemic.
The Arab countries’ GDP value in 2021, at current prices, amounted to $2,881 billion, with an annual growth rate of about 14 percent, according to the report. The Kingdom’s GDP was $833.6 billion, representing approximately 29 percent of the Arab world’s GDP in 2021, with a growth rate of 3.2 percent.
Despite the strong economic performance of the Arab economy, there are several economic challenges facing Arab countries, including an unemployment rate of 12 percent in 2022, which is the highest in the world according to the latest survey released by the United Nations; poverty, which is affecting 130 million individuals; a high inflation rate of 14 percent; weak investment in research and development; and food security.
Minister of Finance Mohammed Al-Jadaan said: “A series of global crises have highlighted the importance of economic integration among Arab nations, the necessity for increased cooperation, and the need for the development of sustainable economic and financial models.”
To enhance food security in the Arab world, the Kingdom has collaborated with Arab Coordination Group institutions and has provided a financial-support package worth more than $10 billion to address this important issue.
I believe that the only way for the Arab world’s economy to prosper is by dealing with these challenges in a unified manner.
This requires enhancement of the cooperation between Arab states to push the pan-Arab economy forward to hopefully reach an advanced stage of economic integration in all fields.
• Talat Zaki Hafiz is an economist and financial analyst. Twitter: @TalatHafiz
