Total external debt in the Middle East and North Africa climbed to $443 billion last year as low and middle-income nations spent a record $1.4 trillion on servicing their foreign debt, the World Bank said in a report on Tuesday.
Last year's figure marked a roughly 23 per cent increase since 2020, according to data from the World Bank’s latest International Debt Report. Total external debt owed by all low and middle-income countries hit $8.8 trillion at the end of last year, an 8 per cent increase since 2020.
The Mena region's external debt level of $443 billion is its highest since at least 2013, the furthest year in which World Bank data goes back. Private creditors accounted for 40 per cent of the region's public and publicly guaranteed (PPG) debt last year, compared to 36 per cent for multilateral institutions and 24 per cent for bilateral partners.
Egypt and Morocco held the highest levels of external debt in the region at roughly $168 billion and $69.3 billion, respectively. Egypt, whose economy is struggling in the midst of regional conflicts, received significant loans from the International Monetary Fund in the last year to help stabilise its economy.
Lebanon, whose debt-to-GDP ratio is projected to be at 140 per cent by the end of 2024, held roughly $67 billion in total external debt last year, the vast majority of it coming from private creditors. Jordan ($44.63 billion), Tunisia ($41.297 billion) and Iraq ($20.33 billion) were also among the highest holders of external debt in the region.
The report found that developing nations spend a record $1.4 trillion to service their foreign debt in 2023 largely because of soaring interest payments, which rose to roughly $406 billion. Principal repayments remained around a “stable” 951 billion, the World Bank said. “The result, for many developing countries, has been a devastating diversion of resources away from areas critical for long-term growth and development such as health and education,” the bank said.
The Middle East spent $24 billion on principal repayments and $12 billion on interest payments. Egypt spent the most on interest payments in the region at $6.27 billion. Syria did not make any payments on interest or principal repayments, data showed.
The world's poorest countries, which are eligible to borrow from the bank's International Development Association lending arm, paid $96.2 billion to service their debt last year while interest costs rose to an all-time high of $34.6 billion. Interest payments for the world's most vulnerable countries are now roughly 6 per cent of export earnings, the highest level this century.
“The squeeze on the poorest and most vulnerable countries … has been especially fierce,” the World Bank said. Excluding China, debt-servicing costs for low and middle-income countries climbed to $971.1 billion last year, up 19.7 per cent the year before due to record debt levels, interest rates reaching a two-decade high amid a stronger US dollar.
The Covid-19 pandemic and the subsequent global surge in interest rates exacerbated developing nations' debt burdens as it became it more expensive for those economies to borrow. While interest rates are now easing, they are still expected to remain above pre-pandemic levels.
Private lending also slowed during this period, leading multilateral institutions to become critical lenders for low and middle-income countries. Both Egypt and Pakistan have received major loan packages from the IMF.
The World Bank said it and other multilaterals became de facto lenders of last resort in 2022 and 2023 for the world's poorest countries, providing roughly $51 billion more in 2022-23 than they collected in debt-service payments. The World Bank said it accounted for $28.1 billion of that sum. Meanwhile, debt stock owed to multilateral creditors rose 6.8 per cent last year, compared to a 0.8 per cent increase for private creditors.
“In highly indebted poor countries, multilateral development banks are now acting as a lender of last resort, a role they were not designed to serve,” World Bank chief economist and senior vice president Indermit Gill said in a news release. “That reflects a dysfunctional financing system: except for funds from the World Bank and other multilateral institutions, money is flowing out of poor economies when it should be flowing in,” the World Bank said.
A separate report from the Institute for International Finance showed global debt surged by more than $12 trillion during the first three quarters of this year to a new high of almost $323 trillion. It is the third-largest quarterly increase on record following two separate periods during the Covid-19 pandemic.
Global debt is projected to settle at $320 trillion by the end of this year and surge in 2025 and beyond, largely because of government spending. Today's debt-to-GDP ratio of 326 per cent is more than 30 per cent lower than it was in 2020, although some countries such as Turkey, Nigeria and Brazil have seen increases in their debt ratios.
The Institute for International Finance also said increasing trade tensions could undermine growth prospects, while rising government interest costs could further deepen fiscal strains. “Pursuing expansive fiscal policies in an era of rising geoeconomic fragmentation may prove challenging,” the institute said.
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Anxiety and work stress major factors
Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.
A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.
Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.
One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.
It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."
Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.
“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi.
“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."
Daniel Bardsley
KILLING OF QASSEM SULEIMANI
Company profile
Name: Thndr
Started: October 2020
Founders: Ahmad Hammouda and Seif Amr
Based: Cairo, Egypt
Sector: FinTech
Initial investment: pre-seed of $800,000
Funding stage: series A; $20 million
Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC, Rabacap and MSA Capital
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Zayed Sustainability Prize
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cylinder%20turbo%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E680hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C020Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EEarly%202024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh530%2C000%20(estimate)%3C%2Fp%3E%0A
The specs: 2018 Bentley Bentayga V8
Price, base: Dh853,226
Engine: 4.0-litre twin-turbo V8
Transmission: Eight-speed automatic
Power: 550hp @ 6,000pm
Torque: 770Nm @ 1,960rpm
Fuel economy, combined: 11.4L / 100km
Emiratisation at work
Emiratisation was introduced in the UAE more than 10 years ago
It aims to boost the number of citizens in the workforce particularly in the private sector.
Growing the number of Emiratis in the workplace will help the UAE reduce dependence on overseas workers
The Cabinet in December last year, approved a national fund for Emirati jobseekers and guaranteed citizens working in the private sector a comparable pension
President Sheikh Khalifa has described Emiratisation as “a true measure for success”.
During the UAE’s 48th National Day, Sheikh Khalifa named education, entrepreneurship, Emiratisation and space travel among cornerstones of national development
More than 80 per cent of Emiratis work in the federal or local government as per 2017 statistics
The Emiratisation programme includes the creation of 20,000 new jobs for UAE citizens
UAE citizens will be given priority in managerial positions in the government sphere
The purpose is to raise the contribution of UAE nationals in the job market and create a diverse workforce of citizens
