The Debt and Fiscal Outlook Report for the Arab Region provides a comprehensive analysis of different flows of finance – domestic resources, debt and innovative financing instruments – that can expand fiscal space to support sustainable development. The report recognizes that current financing challenges are immense. However, it also demonstrates how the region could tap significant additional resources. Rising debt burdens, interest rate hikes, inefficient expenditure and crises all weigh on public budgets. Such constraints are compounded by limited access to concessional finance and systemic global inequities. Together, these issues are steadily eroding essential services, impeding growth and increasing inequality.

To ease fiscal strains, the report presents a package of recommendations aimed at both national and international actors. Measures encompass domestic reforms to improve equity and efficiency in public spending, enhance tax mobilization, optimize debt portfolios and increase the use of innovative financial instruments. In tandem, the report urges reforms to achieve a fairer global financial system. This requires steps such as reorienting credit rating methods and debt sustainability frameworks to support public investment that is critical for growth and inclusive development. Implemented together, report recommendations offer a comprehensive roadmap for the Arab region in its quest to achieve fiscal resilience, ensure debt sustainability and unlock new sources of financing for sustainable development.

For more information about the report and to download this publication, visit this page.