An international study highlights the widening wealth gap in the Arab region

She said ESCWA Committee In a press release: “Although household wealth has grown faster than the global average, the gap has widened significantly between the rich and those living in poverty, particularly since the Arab uprisings in 2011.”

The study titled “Uneven trends in wealth accumulation in the Arab regionhighlights disparities in wealth between low-income and middle- and high-income countries in the region.

Divergent paths to wealth

From 2000 to 2010, the average wealth of residents in the Arab region grew at a rapid pace of nearly 8.4%, exceeding the global average of 5.9%. Low-income countries experienced the fastest growth during this period, indicating a trend toward convergence of wealth.

But the trends quickly reversed between 2010 and 2022. While the wealth of middle- and high-income countries continued to grow – albeit at a slower pace – low-income countries saw personal wealth decline, from $5,100 in 2010 to $3,200 in 2022.

Khaled Abu Ismail, a senior economic affairs official at ESCWA, said that the widening wealth gap raises concerns, “Thus, low-income countries will fall behind not only the rest of their regional environment, but also on a global scale, which threatens social cohesion and economic stability.”

Wealth inequality has increased, and in 2022, average wealth in high-income countries rose 31 times more than in low-income countries in the Arab region.

Concentration of wealth within countries

The study also highlights the increasing concentration of wealth within countries. In low-income countries, the share of the richest 10% of the population increased from 55% in 2000 to 64% in 2022. In middle-income countries, this share increased from about 58% to 62%. Conversely, high-income countries saw a decline in wealth concentration among the top 10% of the population, from 74.7% to 69.6%.

At the same time, the share of the poorest half of the population in low-income Arab countries fell from 10.7% in 2000 to only 7.6% by 2022. These trends indicate that wealth is becoming increasingly concentrated among the rich, especially in low-income countries, exacerbating inequality and undermining poverty reduction efforts.

A call for comprehensive political action

To address these growing disparities, the study calls for a follow-up A comprehensive and multifaceted political approach It aims to promote equitable distribution of wealth and advance comprehensive economic growth. Key recommendations include: Expanding wealth accumulation opportunities for low- and middle-income families By facilitating access to financial services and wealth accumulation initiatives.

It can lead Progressive taxation On assets exceeding a certain threshold and on transferring significant wealth to generate revenues to finance programs that support disadvantaged groups. The study – which stresses the need for regional cooperation – also calls for harmonizing tax policies and improving transparency through mandatory wealth reporting.

Abu Ismail confirmed that “Addressing wealth inequality is not only a moral imperative, but also a key to economic recovery and sustainable growth in the Arab region.”. He added: “We need coordinated efforts to implement these policies, especially in low-income and conflict-affected countries.”

The report confirms that achieving economic recovery and comprehensive growth, especially in low-income countries, constitutes the highest regional priority. This requires EPermanent peace is achieved, implementing the necessary reforms for economic and political stability, and strengthening governance.