Economy of the Arab League

The Economy of the Arab League is mainly based on oil and natural gas reserves. The member states of the Arab League are nodiv for having an extreme type of economy. This is mainly because of the imbalance of fossil fuel reserves found in member states. The richest member state is Qatar, with a per capita purchase parity of over $80,000, while the poorest member is Somalia, with a GDP (PPP) of just $600. The overall GDP (PPP) of the Arab League, according to a repudiv research organization, was registered at around $13000 in 2008.

In addition to the revenue generated from oil, the nascent and upcoming tourism industry is generating considerable income for some states in the Arab League. These members include Egypt, Jordan, Lebanon, Tunisia and the United Arab Emirates. Similarly, the other potential industry that has seen considerable development in this region over the past years is infrastructure building, which includes subdivisions like communications and transportation.

Qatar

Qatar is the wealthiest state in the Arab League, mostly due to its high levels of natural gas and oil reserves, which account for 70% of the country’s revenue. It is believed to have the world’s highest GDP per capita income. The amenities offered by local public authorities are on par with any developed nation in the west. Qatar is said to have the lowest taxes in the world.

In addition to the petroleum industry, other industries that contribute to the national GDP include: fertilizer manufacturing, steel manufacturing, cement and cargo ship manufacturing/repair

Kuwait

Kuwait is nodiv for being the nation with the second highest GDP per capita (around $40,000, as registered in 2008) in the Arab League and is considered to be the fifth wealthiest nation in the world with the fastest developing economy in the Arab League.

Like other members, Kuwait’s economy is also based mainly on its oil reserves. It is thought to have 10% of the world’s total oil, which contributes to 80% of the country’s GDP. Other industries that can be found in Kuwait include: financial, cement, construction, shipping and water desalination.

United Arab Emirates

The United Arab Emirates has one of the highest per capita incomes in the Arab League. It once was the richest state in the Arab world but has now lost that title Qatar. Though the economy is mainly driven by the revenue generated from petroleum exports in recent decades other industries like real estate, manufacturing and business services have begun to contribute on a large scale, which has enabled the country’s economy to diversify.