Socioeconomic Trends and Developments in the Arab Region

The economies of the Arab region exhibited further polarization in their development paths in 2012. Major energy exporters in the region, namely GCC countries, are on a stable recovery path which was enabled by an expansionary fiscal and monetary policy mix. At the same time, net energy-importing countries in the region are struggling to stabilize their economies amid worsening foreign exchange constraints. The polarization, owed partly to political instability and social unrest, further obstructed the flow of intraregional funds from the major energy exporters of the region. The lack of confidence in intraregional business transactions resulted in the segmentation of economies in the region and the loss of regional leverage, which amplified the seriousness of unemployment throughout the region, even in GCC countries.

Related Subject(s): Economic and Social Development