The United Nations Development Programme released its latest assessment report on March 31, indicating that the recent escalation in the Middle East could cause losses to Arab countries ranging from $120 billion to $194 billion (approximately 784 billion ringgit), equivalent to 3.7% to 6.0% of these countries' gross domestic product.
The report states that the escalation of military conflict in the Middle East has entered its fifth week, and the resulting losses could exceed the cumulative GDP growth value of Arab countries in 2025. It is estimated that 3.6 million jobs may be lost, regional unemployment rates could rise by up to 4 percentage points, and more than 4 million people could fall into poverty.
Abdallah Al Dardari, United Nations Assistant Secretary-General and Director of the UNDP Regional Bureau for Arab States, said that this crisis serves as a wake-up call for countries in the region, urging them to fundamentally reassess their strategic choices in fiscal, industrial, and social policies. The research results show that countries in the region need to strengthen regional cooperation to achieve economic diversification, break free from dependence on fossil fuel-driven growth, expand their production bases, secure trade and logistics systems, and broaden economic partnerships in order to reduce the risks of shocks and conflict impacts.