Qatar stood as the richest country in the Arab region and fourth globally in terms of per capita income, while the UAE was the second richest in the region (ranked 12th in the world), followed by Bahrain (26th globally), according to a new study.

 

Somalia and the Syria came among the countries with the lowest per capita income in the world, as per the new report released by the United Nations Economic and Social Commission for Western Asia (ESCWA) entitled “Real sizes of Arab economies between 2017 and 2023”.

 

The report offers a comprehensive analysis of the results of the International Comparison Programme (ICP) and the purchasing power parities (PPPs) of Arab currencies over the span of seven years, from 2017 to 2023. 

 

It reveals the real sizes of Arab economies, providing major findings and regional insights into key economic indicators. The report also includes a comparative analysis between countries up to the year 2023, as well as a detailed analysis conducted within the global context for the year 2021.

 

The Arab economy accounts for nearly 5% of the world global gross domestic product (GDP), with Egypt and Saudi Arabia ranking among the 20 biggest economies worldwide and contributing with 27% and 24%, respectively, to the regional economy, the study said. 

 

The results of that analysis reveal that average per capita income in the six Gulf Cooperation Council (GCC) countries exceeded the world average. 

 

Commenting on these facts, ICP Regional Programme Manager for the Arab region at ESCWA and author of the report Majed Skaini explaine that, although Qatar ranked as the richest Arab country, it came only 3rd in terms of material well-being of residents, measured through actual individual consumption per capita (AIC). “The highest level of material well-being in the Arab region was scored by the UAE, which ranked 24th worldwide, followed by Kuwait in the 37th place and Qatar in the 38th,” he added.

 

While GDP per capita is often used to depict the average standard of living in a country, AIC per capita is a widely used measure to assess average material well-being of people within an economy, especially in lower-income economies.

 

Skaini underscored that PPPs were used to conduct comparative economic analysis to gain more insights into industry competitiveness, investment opportunities, government decisions on subsidies, taxation and other fiscal instruments. “PPPs are also used in measures related to health, energy, education and the environment,” he concluded. - TradeArabia News Service