"1.4 trillion dollars is the size of the debts of the countries of the Arab region during the past decade, as the debts of the Arab countries increased to a historical level that represents about 60% of the region's GDP in 2020".

This is the summary of a study published by the United Nations Economic and Social Commission for Western Asia (ESCWA) entitled: “Lack of liquidity and high debt: Obstacles on the path of recovery in the Arab region,” in which it indicated that the past decade witnessed an unprecedented increase in public debt rates in the Arab region.

While data indicate that nearly half of the public debt in the Arab region falls on middle-income countries, whose total public debt rose from nearly $250 billion in 2008 to $658 billion in 2020, even the relatively high-income Gulf Cooperation Council countries did not Escaping the debt trap, the total public debt in these countries has nearly doubled five times, from $117 billion in 2008 to about $576 billion in 2020.


As the video shows, debts have accumulated in an unprecedented way in Arab countries during the past decade, whether in low-income countries such as Egypt, or high-income countries such as Kuwait and Saudi Arabia, despite this, Arab countries continue to borrow at a steady pace.

During 2022, the debts of Arab governments exceeded $1.5 trillion, and Egypt had the largest value of public debt (external debt + internal debt), as it amounted to about $409.5 billion, equivalent to 94% of GDP, without debt servicing costs. That is, the benefits that increase each year, and the additional costs of the appreciation of the dollar against the local currency.

The danger of these debts to countries is that they are like a black hole from which they cannot get out, or what experts know as a “debt trap”, where governments borrow to fill the budget deficit, but they soon find that these debts and their benefits erode state revenues in the following years, which causes A deficit, so countries are forced to borrow again to fill the deficit or pay the interests of the debts due, and thus the state borrows a third, fourth and fifth time, without being able to get out of that vicious circle, which eventually forces it to sell its assets to pay off debts, or perhaps declare bankruptcy in the most cases ferocity.



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