Economy Lebanon and Sudan swell Arab countries’ public debt By Nadim Kawach January 20, 2025, 3:12 PM Elisa Gestri/Sipa USA Beirut, Lebanon, where public debt exceeded GDP at the end of 2023 Total debt up by $142bn in 2023 Egypt’s debt in steep decline Saudi Arabia increases ratio Public debt in Arab countries swelled by nearly $142 billion at the end of 2023, mainly because of a sharp rise in obligations by Lebanon and war-battered Sudan. Total debt increased despite a fall in Egypt’s public, mostly domestic, dues as a result of a large depreciation in the pound against the US dollar. The Abu Dhabi-based Arab Monetary Fund (AMF) said in a 480-page report for 2024 released at the weekend that the combined public debt of 12 Arab countries which have disclosed figures grew from about $1,184 billion at the end of 2022 to nearly $1,326 billion at the end of 2023. The AMF, a multilateral financial sub-organisation of the Cairo-based Arab League, said a large number of Arab governments had not provided debt data for 2024 and some others have not supplied figures at all. Bahrain debt hits $48bn but analyst downplays spending fears New Lebanese president faces uphill task on economy Balancing the Saudi books to improve growth The report on the financial and socio-economic developments in the Arab region showed only Egypt and Oman recorded a decline in their public debt in 2023, while the obligations of Sudan, Lebanon and Bahrain exceeded their GDP at the end of the year. The AMF said Sudan’s debt more than quadrupled to $256 billion at the end of 2023, from $61.5 billion at the end of 2022. In Lebanon, which is suffering a prolonged financial crisis, debt soared to $84 billion from $61 billion in the same period, the report said. The International Monetary Fund has said that Sudan’s debt mostly comprises long-standing arrears that have accumulated over time, and the debt was unsustainable. Lebanese debt has also recorded a rapid increase since a financial crisis erupted in late 2019, rendering the country unable to pay arrears and sharply depressing its economy. The report showed the debt of Saudi Arabia, by far the largest Arab economy, climbed from about $264 billion to $280 billion. The kingdom normally borrows to shore up its budget deficits, to avoid erosion in its overseas assets. The increase boosted the Saudi debt-to-GDP ratio from 24 percent to 26 percent in the same period. Officials say the debt remains manageable, and below the average ratio in the Organisation of Economic Cooperation and Development (OECD). Egypt’s debt plunged from around $411 billion at the end of 2022 to $309 billion at the end of 2023, while Oman’s debt shrank from $46 billion to $41 billion.