A new report by the United Nations Development Programme (UNDP) warns that one month of war involving Iran has caused huge economic damage to Arab countries.
The conflict has led to losses of around $186 billion, with some estimates reaching up to $194 billion. This equals a drop of 3.7 to 6 percent in the region’s total GDP. The losses have wiped out more than a full year of economic growth from 2025.
Disruptions in trade, energy markets, and shipping are the main reasons for the damage. Gulf Cooperation Council countries could lose between 5.2 and 8.5 percent of their GDP, while the Levant region faces similar heavy losses.
The UNDP report also predicts that up to 3.7 million jobs could disappear across the Arab states. This rise in unemployment may push nearly four million more people below the poverty line. Countries already struggling with economic problems, such as Sudan, Yemen, and Lebanon, are expected to suffer the most.
UN officials, including Abdallah Al Dardari, have called for an immediate end to the fighting. They say the war highlights the fragility of Arab economies. If the conflict continues, humanitarian needs and financial damage will grow even worse.
The report urges quick action to protect jobs, support the poor, and reduce long-term harm to development in the region. Experts stress that peace is essential to stop further setbacks for millions of people.
