Iraq ranks fourth in GDP among Arab nations

Iraq has emerged as the fourth highest GDP contributor among Arab nations, boasting a GDP surpassing $255 billion, as reported by the Kuwait-based Inter-Arab Investment Guarantee Corporation (IAIGC), an affiliate organization of the Arab League headquartered in Cairo. The nation’s economy remains significantly reliant on oil, which constitutes at least 40% of its GDP.

Saudi Arabia and the United Arab Emirates continue to wield substantial economic influence within the Arab world, collectively contributing approximately 46% of the region’s GDP in 2023. Saudi Arabia, the world’s largest oil producer, recorded a GDP of approximately $1.069 trillion in the preceding year, accounting for 31.3% of the combined GDP of all Arab nations.

Forecasts from the IAIGC project the United Arab Emirates to maintain its economic momentum, with a projected GDP of $509.2 billion in 2023, representing roughly 14.9% of the Arab world’s GDP. Meanwhile, Egypt secured the third position in terms of GDP among Arab nations, with its economy registering at $398.4 billion in 2023.

The prominence of oil as a cornerstone of economic activity is evident in the economic landscape of Iraq, where petroleum remains a primary driver of GDP growth. Despite efforts to diversify its economy, Iraq’s reliance on oil underscores the importance of global energy dynamics in shaping the nation’s economic trajectory.

As Iraq solidifies its position among Arab nations with a notable GDP ranking, the nation faces both opportunities and challenges in its quest for economic advancement and diversification. Strategic initiatives aimed at reducing dependence on oil revenues and fostering sustainable growth are pivotal to Iraq’s long-term economic resilience and prosperity on the regional stage.