Iraq leads Arab countries in economic growth forecasts for 2026.

The World Bank forecast on Tuesday that the Iraqi economy will record the highest growth rate among Arab countries in 2026, at 6.7%, placing it first in the Arab world on the list of economic performance expected to grow next year.

This high growth reflects a clear improvement compared to the June 2025 forecast, supported by a recovery in the energy sector and increased oil exports, along with government efforts to boost infrastructure investment and diversify sources of income.

This anticipated performance is a positive indicator of the Iraqi economy’s recovery and renewed activity, in light of global and regional economic challenges.

Djibouti ranked second with an expected growth rate of 6.1%, followed by Qatar with 5.3%, then Palestine with 5.1%, while the UAE recorded growth of 5%.

Saudi Arabia’s growth forecast reached 4.3%, followed by Egypt and Morocco with rates approaching 4.2%, while growth rates in Lebanon, Oman, and Libya ranged between 3.5% and 3.6%.

Algeria, Bahrain, and Kuwait recorded moderate rates ranging between 2.5 and 3.1%, while Jordan and Tunisia recorded rates below 2.7%, and Yemen remained unchanged at 2.5%.

Shafaq.com