DUBAI: Qatar maintained its position as the wealthiest nation in the Arab region, with a commendable ranking of fourth globally in terms of per capita income, United Nations Economic and Social Commission for Western Asia (ESCWA) reported.
The report, titled “Real sizes of Arab economies between 2017 and 2023,” indicated that United Arab Emirates (UAE) follows as the second richest in the region, sitting twelfth worldwide, while Bahrain ranks twenty-sixth globally.
In stark contrast, Somalia and Syria emerge as countries with some of the lowest per capita incomes globally, highlighting significant inequalities within the region.
This comprehensive analysis tracks the real sizes of Arab economies over a seven-year period from 2017 to 2023 by leveraging insights from the International Comparison Programme (ICP) and purchasing power parities (PPPs).
It delineates key economic indicators, offering an essential comparative analysis among Arab countries and contextualizing their performance on a global scale, particularly in 2021. The findings reveal that the Arab economy contributes nearly five per cent to the world’s total gross domestic product (GDP), with significant roles played by Egypt and Saudi Arabia, which account for 27 per cent and 24 per cent of the regional economic output, respectively.
One critical aspect the report underscores is the average per capita income across the six Gulf Cooperation Council (GCC) countries, which surpasses the global average. However, a more nuanced measure of residents’ material well-being—actual individual consumption per capita (AIC)—paints a different picture.
Economic performance
Majed Skaini, the ICP Regional Programme Manager for the Arab region and author of the report, said that Qatar, despite its GDP per capita ranking, claims only the third position concerning the material well-being of its residents.
“The UAE leads this measure, ranking twenty-fourth worldwide, followed by Kuwait and Qatar at thirty-seventh and thirty-eighth, respectively. This revelation emphasises that GDP per capita, while a useful indicator of economic performance, may not accurately reflect the standard of living experienced by residents, particularly in lower-income economies.”
Moreover, Skaini noted the importance of PPPs in conducting comparative economic analysis, facilitating deeper insights into industry competitiveness, investment opportunities, and government fiscal decisions. PPPs are vital for evaluating measures related to health, energy, education, and environmental sustainability, thereby underscoring their significance in shaping policy outcomes.
