PM:06:07:07/10/2025
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According to the World Bank, Iraq’s economy is expected to record the highest growth rate among Arab countries in 2026, reaching 6.7 percent.
The World Bank said Tuesday that the strong projection marks a significant improvement compared to June 2025 forecasts. The growth is driven by energy sector recovery, increased oil exports, and government efforts to boost infrastructure investment and diversify revenue sources.
"This forecast is a positive indicator of Iraq’s economic recovery and renewal of activities amid global and regional challenges,” the report stated.
Djibouti ranked second with an expected growth of 6.1 percent, followed by Qatar (5.3%), Palestine (5.1%), and the UAE (5%). Saudi Arabia is projected to grow by 4.3 percent, while Egypt and Morocco each record 4.2 percent. Lebanon, Oman, and Libya range between 3.5 and 3.6 percent.
Algeria, Bahrain, and Kuwait are expected to post growth rates between 2.5 and 3.1 percent, while Jordan and Tunisia remain below 2.7 percent, and Yemen’s growth is projected to stay flat at 2.5 percent.