Dubai –
Sovereign debt servicing consumes significant fiscal resources across several Arab economies, restricting governments’ capacity to fund essential services and development projects. The International Monetary Fund warned in October 2026 that global public debt approaches record levels, noting interest payments alone exceed 15% of government revenues in low-income countries.
External Debt Growth Trends
World Bank data reveals substantial increases in external debt for specific Arab nations over the past decade. Egypt’s total external debt rose from approximately $41.8 billion in 2014 to roughly $156 billion by end-2024, more than tripling its level. Jordan’s external debt increased from $24.1 billion to nearly $47 billion, a rise close to 95%, while Morocco’s debt grew from $43.3 billion to about $68 billion, an increase of approximately 57%.
Creditor Composition Variations
The structure of creditors differs markedly among these nations. In Egypt, private sector creditors held 39% of general and government-guaranteed external debt by end-2024, compared to 36% for multilateral institutions including the IMF and World Bank, and 25% for bilateral lenders. Bondholders accounted for roughly 23% of this debt, while the Saudi Arabian government held a 6% share.
In Morocco, multilateral institutions financed approximately $21.5 billion out of $45.7 billion in total external debt, representing nearly 47%. Tunisia’s external debt stood at $20.8 billion, with multilateral lenders holding $12.76 billion (61%) and bilateral creditors holding $5.4 billion (26%). Jordan’s external debt reached $23.7 billion, split between $10.8 billion from private sector creditors, $8.5 billion from multilateral institutions, and $4.4 billion from bilateral sources.
Per Capita Impact and Fiscal Pressure
Per capita external debt figures highlight demographic influences on debt burdens. Jordan recorded approximately $4,065 per person, Morocco showed $1,846, and Egypt registered $1,333. These disparities stem from differing population sizes despite Egypt having the highest total debt volume among the three.
Debt-to-GDP ratios further illustrate fiscal pressures. Jordan’s central government debt reached 109% of GDP according to 2025 IMF estimates. Morocco’s ratio declined from 67.7% in 2024 to 67.1% in 2025, projected to fall to 65.9% in 2026. Tunisia’s debt service costs consumed 26.2% of export revenues, underscoring the severe strain on national income and the potential for reduced subsidies or higher prices affecting households.
This story was produced in the newsroom from the disclosed sources named above.
