10 Hrs
Source:
اقتصاد
Arab Nations' Debt Burden
Public debt varies sharply across Arab countries. According to 2026 data from the International Monetary Fund, debt as a share of GDP stood at 334.4% in Sudan, 162.8% in Bahrain, and 139.4% in Lebanon. The ratio alone, however, is not enough to assess a country’s fiscal position; borrowing costs, maturities, and revenue sources also matter. Experts warn that external debt increases exposure to currency and interest-rate fluctuations, and that rising debt-service costs can crowd out spending on health, education, and social protection. Worldwide, 3.7 billion people live in countries where interest payments exceed spending on health or education. Borrowing can support development when it is directed toward productive investments that boost productivity, revenue, and employment. But it becomes a burden when used to cover recurring imbalances without generating sustainable returns. Experts recommend broadening the productive and tax bases, directing spending toward areas with the highest returns, protecting vulnerable groups, and avoiding austerity that undermines growth.
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