Kuwait (Union)
The Arab Corporation for Investment and Export Credit Guarantee (Daman) revealed that Arab GDP will grow at a rate of 4.4% to exceed $2.8 trillion in 2021, with expectations that it will continue its positive growth during 2022 at a rate of 4.5% to reach regarding $3 trillion, following shrinking at a rate of 4.5% during the year 2020.
In a press release on the occasion of the issuance of the fourth quarterly bulletin “Investment Guarantee” for the year 2021, the corporation attributed the improvement in the performance of the Arab economy during the year 2021 to the relative decline of the repercussions of the Corona crisis, in addition to the significant rise in oil prices, whose revenues still represent an important share in output, exports and government revenues. a large number of countries in the region. This is in addition to the improvement in the performance of the global economy and its growth at a rate of 5.9% during the year 2021, according to the estimates of the International Monetary Fund in October 2021.
indicators improved
Abdullah Ahmed Al-Sabeeh, Director-General of the Corporation, added in the editorial of the bulletin that most indicators of the performance of the Arab economy during the year 2021 witnessed a remarkable improvement compared to 2020, where the per capita output in the Arab countries improved by 13% to reach 6,375 dollars on average, and to regarding 15,445 It is expected to continue to improve, reaching $6,612 on average in 2022, despite the population increase from 443 million to 452 million during the same period.
Crude oil production in the Arab oil-exporting countries increased by 2.7% to reach 21.9 million barrels per day, and its exports increased by 2.9% to 16.2 million barrels per day. The average gas production in the Arab oil-exporting countries also increased by 6.9% to 11.8 million barrels per day. Its exports also increased by 6.1% to reach 4.6 million barrels per day.
The combined deficit of Arab budgets decreased by 53.8% to reach 102.1 billion dollars, and the percentage of this deficit decreased to regarding 3.7% of Arab output.
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Abdullah Al-Sabeeh
government debt
Indicators of indebtedness improved, as the ratio of government debt to output in the Arab countries decreased to 56.5%, with expectations that it will continue to decline to 54.3% during 2022, and the ratio of external debt also declined to 62% of output, with expectations that it will continue to decline to reach 56.7% of output in 2022.
Arab foreign trade achieved a remarkable recovery, growing at a rate of 21.7% to reach $2.2 trillion, as a result of the growth of Arab exports at a rate of 31.1%, as well as Arab imports at a rate of 12.6%, with expectations of further rise during 2022 to reach regarding $2.4 trillion. As a result, the Arab trade balance deficit for the year 2020 turned into a surplus of $133 billion in 2021.
And the current account balance of the Arab countries shifted from a deficit of 77.3 billion dollars in 2020 to a surplus of 68.7 billion dollars, representing 2.5 percent of the output.
Arab reserve
The Arab foreign exchange reserve rose to exceed the limits of one trillion dollars, to be sufficient to cover Arab imports of goods and services for regarding 10.5 months, with its stability at this limit during 2022.
In this context, the Foundation called on member states for more cooperation and integration in economic issues in general and in trade and investment files in particular. It also affirmed its readiness to enhance its support for Arab countries and encourage the trade and investment sectors to grow further by developing new services and expanding the scope of their work in various member states. In addition to strengthening its alliances with export and investment insurance agencies in the region and the world.
It is noteworthy that the Arab Corporation for Investment and Export Credit Guarantee (Daman) was established in 1974 and is headquartered in the State of Kuwait, as a multilateral institution that includes in its membership all Arab countries and four joint Arab financial institutions.
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