10 Richest Arab Countries in 2023

In this article, we will be taking a look at the 10 richest Arab countries in 2023. To skip our detailed analysis of the Arab world and its oil economy, you can go directly to 5 Richest Arab Countries in 2023.

Significance of the Arab World for World Powers

The richest Arab countries are mainly based in the Middle East. The region is rich in natural resources with oil and gas running regional economy. The abundant petroleum fields in Arab countries attract Western powers to the Middle East. The United States’ influence in the Middle East for past two decades is a prime example of it. In the 19th century, European powers vied to establish colonies around the world. Middle East and the Gulf region were the main targets due to massive oil reserves. Great Britain was among the earliest powers to establish its control in the region. But after World War II, British power started to decline and they had to surrender many regions. The downfall of British power had already begun in the Sub-continent and Arab area. At that time, the U.S. was emerging as a new superpower. Soon Americans realized the significance of investing in the Middle East and taking over the black gold reserves.

Despite the dissipating oil reserves in the Gulf, Arab oil still holds great significance in the world. Arab countries are among the top oil producing countries in the world. Iraq has some of the biggest oil reserves and the country is the second-largest crude oil producer in OPEC, after Saudi Arabia. As we pointed out earlier, the global crude oil market is expected to reach $1.6 trillion by 2029. However, the oil market is expected to face high volatility due to the changing global economic environment.

The Oil Economy in Arab

Saudi Arabia is the leading oil producer in the region. The only oil company with a trillion-dollar market capitalization is Saudi Arabian Oil Co. (2222.SR), operating as Saudi Aramco. As of July 8, Saudi Arabian Oil Co. (2222.SR) has a market cap of SAR 7.82 trillion. In fiscal 2022, Aramco (2222.SR) had an average hydrocarbon production of 13.6 barrels of oil equivalent per day, including 11.5 million barrels per day of total liquids. With strong outcomes, Aramco (2222.SR) posted a record net income of $161.1 billion for fiscal 2022. Aramoc’s (2222.SR) CEO Amin Nasser said, “This is probably the highest net income ever recorded in the corporate world.

Qatar has the 6th largest oil reserves in the Middle East and the 14th largest in the world. As of January 2023, Qatar’s crude oil reserves are estimated at 25.2 billion barrels. Kuwait is a small island nation that has one of the strongest economies in the world. As of September 2022, Kuwait held an estimated 7% of global oil reserves with a production capacity of 3.15 million barrels per day. A massive oil economy helps the richest Arab countries to rank among the largest economies in the world

Big Arab Economies’ New Vision

Arab’s big economies are making moves to diversify their economic development. For years, Arab countries have relied on the oil economy. Recently, we have experienced major developments from Saudi Arabia, Qatar, and the United Arab Emirates. Saudi Arabia’s Crown Prince Mohammed Bin Salman has laid the Vision 2030. To promote tourism and business in the country, Saudi Arabia is making amendments and changes to its law. The leaders are investing in traditionally marginalized constituencies, such as youth and women. In 2018, women in Saudi Arabia were allowed to drive for the first time in the country’s history. Saudi Arabia has created a public fund with plans to invest in various sectors including tourism, entertainment, sports, and real estate. In an interview with Saudi journalist Abdullah Al-Mudaifer, Crown Prince Mohammed Bin Salman said:

“The Public Investment Fund the goal of its size was set for 2020 at 7 trillion riyals. Now in 2020 it’s going to be 4 trillion riyals and we’re going to amend it to 10 trillion riyals in 2030. So, all the numbers that we thought they were huge numbers and unachievable we did manage to break a part of them in 2020 and we shall break even more numbers in 2025 which means that we shall achieve even higher numbers in 2030.” 

Saudi top football clubs are owned by Saudi Arabia Public Investment Fund (PIF). The greatest of all time, Cristiano Ronaldo, joined Saudi Pro League team Al-Nassr FC in January 2023. Al-Nassr FC is one of the four clubs owned by Public Investment Fund. In the 2023 summer transfer window, top players from leading European leagues joined Saudi football clubs owned by PIF. 

In comparison, Qatar is also making progress to boost its sports and tourism sectors. Recently, the country held a successful FIFA World Cup 2022. According to a study, Qatar spent a whopping $220 billion on the World Cup, which is 15 times more than what Russia spent on the FIFA World Cup 2018. On the contrary, the United Arab Emirates has been a center of attraction for tourists for many years now. Saudi Arabia is following in the footsteps of UAE to establish a comprehensive real estate network. Talking about the housing industry, the Crown Prince added:

“We are proceeding towards that end but many of these numbers are so high in terms of our objectives. Like for example the issue of the oil but the idea to ensure implementation. I was talking about the position of the government. I don’t think that there’s a change in terms of achieving the numbers. I believe that we have managed to surpass them before the deadline. For housing, the objective is 60 percent. We did reach 60 percent in 2020. So, 62 percent, we should reach that before 2025 so we have gone beyond the said objectives. From 62 percent to 70 percent of those Saudis with homeownership.” 

U.S. Listed Arab Companies

Arabain companies have played a huge role in the development of growing Arab economies. Some of the top U.S. listed Arab companies include Yalla Group Limited (NYSE:YALA), NWTN Inc. (NASDAQ:NWTN), and Brooge Energy Ltd. (NASDAQ:BROG). NWTN Inc. (NASDAQ:NWTN) specializes in sustainable mobility solutions through eco-conscious technology and the company is working on green energy projects in the United Arab Emirates. On May 18, NWTN Inc. (NASDAQ:NWTN) signed a non-binding memorandum of understanding with CMEC Middle East Fze (CMEC ME), as both companies are looking forward to achieving UAE’s Hydrogen Leadership Roadmap and the country’s 2050 National Net Zero target. Another U.S. listed Arab firm, Yalla Group Limited (NYSE:YALA) is one of the largest online social networking and gaming company in the Middle East and Africa region. The Middle East region is gaining momentum in digitalization and the company has been able to deliver good results during the most recent quarter. On May 15, Yalla Group Limited (NYSE:YALA) posted strong earnings for the first quarter of 2023. The company reported a revenue of $73.5 million, up 1.6% year over year, and outperformed revenue consensus by 0.17 million. During its Q1 earnings call, the company addressed the outcomes and growing opportunities in the Middle East region:

“Our Q1 revenue still reached $73.5 million, falling to the upper end of our guidance and once again demonstrating the remarkable strength of our flagship applications, Yalla and Yalla Ludo. Our businesses continue to exhibit stability and vitality steps to our consistent efforts to build out our community and product portfolio over the past seven years. With our solid fundamentals and robust cash position, Yalla is also able to continuously invest in new products and verticals to explore and tap digital opportunities across the MENA region.

2023 has ushered in fresh economic start among uncertainties around the globe with new dynamics and growth influencing investments worldwide. As we’re reaching, digitalization, the Middle East is receiving increasing attention from the global technology and the investment community. Meanwhile, countries throughout MENA are also working to showcase the region we bring energy and commitment to advancing the new era of development. MENA has long been renowned for its copious natural resources. As a result, traditional industries have long been recognized as the economic backbone of the region. Recently, we have seen a significant shift in this dynamic as numerous countries across MENA, have prioritized digital transformation as one of their most important national development strategies, allocating capital and resources to support digital fields, including gaming and media among others.

As MENA’s largest online social networking and gaming company, Yalla has been proactively preparing to seize these emerging opportunities. To that end, we have identified two growth engines for Yalla Group’s development in 2023. First, we will continue to invest in R&D and our self-developed products, building on our well-established user base and product popularity to amplify our value proposition among MENA markets. Second, we will explore collaborations with global Internet companies that are interested in MENA’s as emerging opportunities. By leveraging our deep local know-how and extensive operating capability, we are confident we can capitalize on global investments and achieve mutually beneficial collaborations.”

10 Richest Arab Countries in 2023

Pixabay/Public Domain

Methodology 

For our list of the richest Arab countries in 2023, we sourced the data from IMF’s database which tracks GDP at current prices. We narrowed down our selection to ten Arab countries with the highest GDP and ranked them in ascending order of this metric. Here are 10 richest Arab countries in 2023.

10 Richest Arab Countries in 2023

10. Jordan

Total GDP of the country (2023): $52.06 Billion

Jordan’s economy is relatively small and faces numerous obstacles like water scarcity, but it is comparatively well diversified. The country is recovering well from the COVID-19 shock. Tourism is an important element that drives Jordan’s GDP growth. Jordan has a GDP per capita of $5,050 and is ranked tenth on our list of the richest Arab countries in 2023.

Some of the biggest Arab companies listed on the U.S. stock market include Yalla Group Limited (NYSE:YALA), NWTN Inc. (NASDAQ:NWTN), and Brooge Energy Ltd. (NASDAQ:BROG).

9. Oman

Total GDP of the country (2023): $104.9 Billion

Oman is a rural country with a core focus on its agriculture sector. Oil revenues also add a significant portion to the country’s GDP and government’s income. Oman has a GDP per capita of $21,960 and is ranked among the richest Arab countries in 2023.

8. Morocco

Total GDP of the country (2023): $138.78 Billion

Morocco mainly depends upon the export of raw materials. The country has made economic reforms that have supported private-sector dynamism. Morocco is also progressing in other sectors including telecommunications and tourism. Morocco’s GDP per capita is $3,750 and the country ranks eighth on our list of the richest Arab countries in 2023.

7. Kuwait

Total GDP of the country (2023): $164.71 Billion

As of July 9, 2023, Kuwait is a small state with a population of almost 4.46 million. According to a report by The World Bank, in 2022, economic growth rebounded massively with a 7.9% increase year of year. An impressive 13.3% rise in Kuwait’s oil sector played a significant role in the growth last year. However, Kuwait’s economy is expected to flag in 2023, after a strong performance in 2022. The forecasted slowdown in the economy is due to static global economic activity. The economy is expected to stabilize over the medium term. Kuwait has a GDP per capita of $33,650 and is ranked among the richest Arab countries in 2023.

6. Algeria

Total GDP of the country (2023): $206.01 Billion

Algeria’s economy is heavily based on its export of petroleum and natural gas. The hydrocarbon sector accumulated 19% of GDP, 93% of product exports, and 38% of budget revenues between 2016 and 2021. Algeria’s GDP per capita is $4,480 and the country is ranked sixth on our list of the richest Arab countries in 2023. 

Some of the most prominent companies in Arab world that are driving the region’s growth include Yalla Group Limited (NYSE:YALA), NWTN Inc. (NASDAQ:NWTN), and Brooge Energy Ltd. (NASDAQ:BROG).

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Disclosure: None. 10 Richest Arab Countries in 2023 is originally published on Insider Monkey.