The New Economic Context for the Arab World Briefing

The briefing examines how global trends—specifically income inequality, social polarization, cyber dependency, and climate change—affect Arab nations. It highlights a regional struggle with economic diversification, particularly in oil-dependent states, and identifies critical weaknesses in labour market efficiency and innovation. The document argues that empowering youth through entrepreneurship and transitioning away from natural resource dependency are essential for long-term stability and growth.

• Rising income and wealth disparity is identified as the global trend with the highest potential impact on the Arab region, with Tunisia, Oman, and Morocco appearing as the most affected countries.
• The region faces significant risks from climate change and cyber dependency; specifically, water crises are a major concern for businesses in Jordan (60%) and Qatar (34%), while the UAE sees higher risks from cyberattacks and data fraud due to its advanced ICT development.
• Excessive dependence on raw materials and a lack of economic diversification leave several countries vulnerable to energy price shocks; in 2016, concern over these shocks ranged from 42% in Saudi Arabia to 62% in Kuwait.
• While Gulf countries like the UAE and Qatar lead the region in competitiveness, innovation, and business sophistication, other nations struggle with labour market inefficiencies, particularly in North Africa where Egypt, Tunisia, and Algeria face high youth unemployment.
• The Arab World has some of the lowest entrepreneurship levels globally, with only one newly registered firm per 1,000 working-age adults, hindered by restrictive bankruptcy laws, inflexible labour regulations, and fragmented regional markets.
• A survey of 1,000 young people (aged 18-35) reveals that government accountability, transparency, and corruption are the most serious issues (49%), with nearly half of the youth identifying entrepreneurship as a key factor for their empowerment.

APA

Di Battista, A., & Faraoun, M. (n.d.). The New Economic Context for the Arab World Briefing. World Economic Forum. http://www3.weforum.org/docs/WEF_The_New_Economic_Context_Arab_World_flyers_2017.pdf

Chicago

Di Battista, Attilio, and Malik Faraoun. The New Economic Context for the Arab World Briefing. World Economic Forum, n.d. http://www3.weforum.org/docs/WEF_The_New_Economic_Context_Arab_World_flyers_2017.pdf.

Wikipedia

{{cite report |last1=Di Battista |first1=Attilio |last2=Faraoun |first2=Malik |title=The New Economic Context for the Arab World Briefing |publisher=World Economic Forum |url=http://www3.weforum.org/docs/WEF_The_New_Economic_Context_Arab_World_flyers_2017.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dibattistandnew, author = {Di Battista, Attilio and Faraoun, Malik}, title = {{The New Economic Context for the Arab World Briefing}}, institution = {World Economic Forum}, url = {http://www3.weforum.org/docs/WEF_The_New_Economic_Context_Arab_World_flyers_2017.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }