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The Arab States<br />

Figure 17.1: Military expenditure in selected Arab states as a % of GDP, 2006–2013<br />

15<br />

11.0<br />

Oman 11.3<br />

10<br />

Saudi Arabia 9.3<br />

7.7<br />

5<br />

0<br />

4.7<br />

4.5*<br />

4.4<br />

3.6<br />

3.5<br />

3.3<br />

3.2*<br />

2.9<br />

2.7<br />

2.7<br />

2.6<br />

1.8<br />

1.4<br />

1.0<br />

4.5<br />

Syria 4.1<br />

Qatar 1.5<br />

UAE 4.7*<br />

Libya 3.3<br />

2006 2007<br />

2008 2009<br />

2010 2011 2012<br />

2013<br />

Algeria 4.8<br />

Lebanon 4.4*<br />

Mauritania 4.0<br />

Bahrain 3.9<br />

Morocco 3.8<br />

Iraq 3.6<br />

Jordan 3.5<br />

Kuwait 3.2<br />

Yemen 2.9<br />

Tunisia 2.0*<br />

Egypt 1.7<br />

*SIPRI estimate<br />

Note: The low figure for Egypt (1.7%) in 2013 only tells half the story, as it excludes the economic activities of the Egyptian armed forces and American aid, which cover<br />

80% of military procurement (Gaub, 2014).<br />

Source: Stockholm International Peace Research Institute database, accessed January 2015<br />

in Jordan and Lebanon, in particular, has been affected by the<br />

massive influx of Syrian refugees since 2011.<br />

Together with Egypt and Sudan, the Mashreq countries<br />

are considered reservoirs of human talent which supply<br />

neighbouring states with teaching faculty, researchers<br />

and both skilled and unskilled workers. Egypt, Iraq Jordan,<br />

Lebanon, Palestine, 4 Sudan and Syria all boast relatively mature<br />

higher education infrastructure that includes some of the<br />

oldest universities in the Arab world, including the American<br />

University of Beirut (1866) and Cairo University (1908).<br />

The Arab Spring has left a big imprint on the Libyan<br />

economy<br />

Since 2008, the Maghreb countries have experienced mixed<br />

fortunes. Whereas the economies of Algeria and Mauritania have<br />

maintained healthy growth rates, countries directly affected by<br />

the Arab Spring have witnessed a more negative trend. Growth<br />

4. On 29 November 2012, the United Nations General Assembly voted to grant<br />

Palestine non-member observer status at the United Nations. Palestine has been a<br />

member of <strong>UNESCO</strong> since 31 October 2011.<br />

slowed to 2.2% in Tunisia and even contracted by 11.6% in Libya<br />

(Table 17.1). However, unemployment rates have remained<br />

unchanged, with variations from one country to another. Despite<br />

average growth of 5.9% between 2011 and 2013, Mauritania’s<br />

unemployment rate was as high as 31% in 2013, indicating that<br />

growth had not been sufficient to provide much-needed jobs.<br />

The Gulf States contribute nearly half of the Arab<br />

world’s GDP<br />

The six Gulf States, which contribute about 47% of total Arab<br />

GDP, are all economically dependent on oil. Some 75 million<br />

people (including a sizeable foreign labour force) belong<br />

to this group, representing around 20.4% of the Arab world<br />

population in 2014 (Table 17.1).<br />

In 2014, the economy slowed in Oman and Qatar, primarily as<br />

a consequence of weaker exports and the drop in both private<br />

consumption and investment. At the same time, Kuwait and<br />

Saudi Arabia emerged from a period of economic contraction,<br />

with several sectors showing signs of recovery, including<br />

housing in Kuwait and banking in Saudi Arabia.<br />

Chapter 17<br />

433

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