Dr. Hamad Kasasbeh

At every annual meeting of the World Economic Forum in Davos, the same major questions return to the forefront. These questions revolve around slowing global growth, rising risks, digital transformation, and mounting debt. Yet for the Arab world, the most pressing issue is not what is discussed in Davos, but why these debates so often seem to describe the reality of many Arab economies with striking accuracy, without being matched by serious review or decisive action.

Davos today discusses a global economy that is rethinking growth models that have run their course. By contrast, large parts of the Arab world remain locked into economic models that have not been fundamentally reviewed. Heavy reliance on public spending, rent-based revenues, or protection remains widespread and is often presented as a safe option, despite its limited ability to generate sustainable growth or sufficient jobs. More concerning is that this reality is sometimes treated as unavoidable, rather than as the result of policy choices that can be changed.

In Davos discussions, it has become clear that monetary policy has reached the limits of its ability to support growth. Central banks are no longer engines of economic expansion, but tools for managing risk and preserving stability. In the Arab world, however, monetary stability is still often presented as an achievement in itself, and at times as a substitute for structural reform. This is a misleading approach, as stability without productive growth leads to a fragile equilibrium that quickly erodes when external shocks occur.

The energy sector highlights one of the most sensitive contradictions in Arab economies. While Davos seriously debates the transition to a post–fossil fuel era, some Arab economies approach this shift with policy caution, while others promote ambitious rhetoric that runs ahead of actual implementation. Even though several oil-producing Arab countries have made tangible progress in economic diversification and investment in new energy sources, the real challenge lies in sustaining these efforts and linking them to higher productivity and a dynamic labour market.

In the area of digital transformation and artificial intelligence, the gap becomes even more visible. Davos frames technology as a tool to raise productivity and reshape labour markets. In contrast, education and employment policies in many Arab countries still struggle to meet the requirements of a modern economy. Advanced digital infrastructure has limited value in an economy that underinvests in human capital, fails to connect education with market needs, and does not reward skills and efficiency.

Davos also places growing emphasis on the changing nature of global trade. The world is moving toward reshaped supply chains, stronger economic blocs, and greater reliance on regional trade. Here, a long-standing Arab weakness becomes evident: low levels of intra-Arab trade and weak economic integration. Many Arab economies continue to operate as separate islands, limiting their ability to benefit from their collective geographic and demographic weight and weakening their position in global value chains.

The same pattern appears in public debt dynamics. In Davos, debt is discussed as a transitional tool when used within a clear reform framework. In parts of the Arab world, however, debt has become an easy solution that postpones reform rather than supports it. Over time, this raises economic and social costs and narrows the range of policy options available to decision-makers.

In light of the above, Davos does not exclude the Arab world; it holds up a candid mirror. The core challenge is not a lack of resources or opportunities, but the repeated postponement of difficult decisions and the slow transition toward a more productive and integrated economic model. The global economic system is being reshaped now. Those who do not engage in this transformation will be forced to adapt from a weaker position. The question Davos ultimately poses is no longer what the world will do, but when will we find the courage to change ourselves?