Jan 13, 2026
Between Wars and Crises: A Reading of the Arab Landscape in 2025 and the Trajectory of Future Development - Ziad Abdel Samad
Ziad Abdel Samad
The Executive Director of ANND

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Ziad Abdel Samad

Between Wars and Crises: A Reading of the Arab Landscape in 2025 and the Trajectory of Future Development - Ziad Abdel Samad

 

Introduction

The year 2025 was marked by serious events that came as direct repercussions of developments in the preceding year, within an international context characterized by escalating chaos and uncertainty, an unprecedented decline in respect for international law and human rights, and the erosion of the system of multilateralism and global governance. Transformations in international politics, particularly with Donald Trump's return to the U.S. presidency at the beginning of 2025, contributed to deepening these trends by reinforcing unilateral approaches, prioritizing the logic of power and narrow interests, and marginalizing multilateral frameworks that have long constituted, even if imperfectly, a space for defending the rights of peoples and weaker states.

In this context, the consequences of accumulated international crises—from the Russian-Ukrainian war to escalating trade and technological tensions with China, through the continuation of wars and conflicts in the Middle East, particularly the Israeli war on the Palestinian people and the accompanying grave violations of international humanitarian law—were not limited to political and security dimensions alone, but extended directly to the economic and financial structures of Arab states. These developments led to an exacerbation of pressures on fragile economies through rising import costs, fluctuating energy and food prices, and tightening external financing conditions, reflected in an accelerated rise in public debt levels and a decline in the capacity to manage public budgets in ways that respond to basic social needs.

Faced with escalating debt servicing burdens, many Arab governments resorted to austerity policies that reordered public spending priorities at the expense of economic and social rights, particularly in the areas of social protection, health, education, and social support. This was accompanied by deepening dependence on International Monetary Fund programs and international financial institutions, which continued to impose reform approaches centered on financial and monetary stability without fundamentally addressing structural imbalances or adequately considering the social impact of these policies, thereby contributing to widening inequality gaps, eroding middle classes, and exacerbating poverty and vulnerability rates in the region.

Within this framework, the Arab experience during 2025 clearly demonstrates the organic interconnection between the dysfunction of the international order on one hand, and the deterioration of national fiscal and social policies on the other. The absence of a just international order based on respect for international law and human rights, and on fair economic rules, places Arab states—particularly those affected by conflicts and financial crises—before limited choices. These choices are often reduced to crisis management rather than resolution, and to financing debt instead of investing in people and sustainable development. This confirms the urgent need to reframe the issues of indebtedness, public budgets, and social protection not as technical matters, but as rights-based and sovereignty issues organically linked to the trajectory of social justice and development in the Arab region.

The Palestinian-Israeli Conflict

At the regional level, the Israeli aggression against the Gaza Strip and the West Bank continued under the pretext of targeting Hamas, while its catastrophic effects were borne by the entire Palestinian people. The Israeli government, dominated by extreme right parties, is pursuing policies aimed at forced displacement and imposing new demographic realities, in flagrant violation of international humanitarian law and the entire human rights system. Estimates indicate tens of thousands of victims, killed and wounded, in addition to widespread destruction of civilian infrastructure, including hospitals, schools, water and electricity networks, leaving more than 80% of Gaza's population in need of urgent humanitarian assistance. This war of extermination triggered a widespread mobilization of global public opinion and intensified pressure to halt war crimes, alongside the categorical rejection by both Jordan and Egypt of projects to displace Palestinians and transfer them to their territories.

In the same context, and as an extension of Israel's escalation policy, Lebanon witnessed a continuation of targeted military strikes, particularly in southern regions, alongside an unprecedented escalation in Israeli threatening rhetoric, keeping the country in a state of permanent security tension and limiting any margin for stability. These developments were accompanied by sharp internal divisions over how to deal with the escalation and Lebanon's role in the regional conflict, negatively impacting political performance, weakening the ability of constitutional institutions to make unified decisions, and directly threatening national unity and civil peace.

This reality led to further obstruction of economic, financial, and political reform paths in a country already suffering from one of the deepest economic crises in the world. Persistent security tensions also undermined the confidence of the international community and donor states, hindering Lebanon's ability to obtain necessary assistance for rebuilding areas damaged by Israeli aggression, supporting the national economy, and strengthening social protection networks that have become a lifeline for the majority of the population. In this framework, the organic interconnection between political and security stability on one hand, and the capacity for economic and social recovery on the other, becomes evident, confirming that any approach to spare Lebanon further collapse cannot be separated from ending Israeli attacks and respecting Lebanese sovereignty.

Israeli airstrikes outside Palestine and attempts to expand the circle of regional targeting, including repeated threats against Iran, alongside security developments that affected the Qatari capital Doha, contributed to notable Gulf mobilization. This led to a retreat from momentum toward concluding new peace agreements, in favor of reaffirming the priority of Palestinian national rights. This shift was particularly evident in the Saudi position, which clearly linked any normalization path to achieving the legitimate rights of the Palestinian people, foremost among them the right to self-determination and the establishment of an independent Palestinian state, in accordance with international legitimacy resolutions.

Syria and the Middle East

In another pivotal development, 2024 ended with the resounding fall of the Baath regime in Syria after more than half a century of rule, and Bashar al-Assad's flight to Russia. This occurred amid tangible retreat of the Iranian role in the region, particularly after its main arm in Lebanon suffered a devastating blow that significantly limited its ability to defend the Syrian regime. The collapse of the regime led to a reshaping of the balance of power inside Syria and across the region, with advancing roles for Saudi Arabia, Qatar, and the UAE, alongside the Turkish role that supported Syrian opposition forces and contributed to their ascent to power.

Conversely, the Israeli role in the ongoing arrangements cannot be overlooked, whether through destroying what remained of Syrian military capabilities, seeking to complete the destruction of Lebanese Hezbollah's capabilities—considered Iran's most important military arm in the region—or through attempts to dismantle the Syrian state and support separatist tendencies, particularly in the south of the country. These developments are unfolding amid major difficulties facing the new authority in controlling armed militias, and with the re-emergence of ISIS to the scene in some areas. American positions in the region do not reflect a clear approach regarding these transformations, as American envoys sometimes send contradictory signals, while the American administration does not express a decisive position, except for its absolute commitment to defending Israel.

The Situation in Yemen, Sudan, and Libya

Regional conditions have witnessed dangerous developments in Yemen, particularly in Hadramout governorate, where Arab contradictions in approaches to building regional relations have emerged, reaching in recent days an outbreak of direct military confrontation between Saudi Arabia along with the Arab coalition and the Yemeni Presidential Council on one side, and the United Arab Emirates, which supports the Southern Transitional Council militia with separatist tendencies in southern Yemen, on the other; it remains unclear at the time of writing, where this confrontation—still in its early stages—will lead.

Meanwhile, the war in Sudan continues with tragic consequences, both in terms of its ferocity and its humanitarian impacts, as United Nations estimates indicate that more than 10 million people have been displaced, turning the crisis into one of the world's most dangerous humanitarian disasters with direct regional repercussions. These developments in both countries threaten national unity and increase the likelihood of separation. Developments in Libya cannot be overlooked, particularly after the killing/assassination of the Chief of Staff of the Armed Forces affiliated with the Presidential Council in Tripoli in a mysterious incident in Turkey. This occured at a time when Lybia was witnessing indicators of rapprochement with forces loyal to Khalifa Haftar in Benghazi, known as the Libyan National Army, which form part of his efforts to consolidate control over eastern Libya and areas surrounding Benghazi, reopening the door to the possibility of a return to armed conflict.

Economic and Social Crises

However, the impacts of these political and security transformations are added to the chronic and deep crisis affecting the development and rights trajectory in the region due to the impact of neoliberal globalization and national policies aligned with it. Extended wars, state fragmentation, changing public spending priorities, and the worsening debt crisis have led to a sharp economic and social decline in human development indicators, weakening of social protection systems, and expansion of poverty, unemployment, and marginalization. The year 2025 witnessed increasing restrictions on public freedoms and democratic spaces in a number of countries in the region.

These crises were accompanied by an unprecedented exacerbation of poverty rates and wealth distribution inequality, deepening social divisions and threatening civil peace in several regional countries. Estimates indicate that more than 40% of the Arab region's population now lives below or near the poverty line, while some countries suffer from poverty rates exceeding 50% of the population, even reaching 75-80% of the population in some countries experiencing comprehensive crises. This is accompanied by a widening inequality gap, where limited segments of society capture the largest share of income and wealth, while the middle class erodes and its purchasing power declines due to inflation, subsidy removal, and declining real wages.

Alongside notable economic deterioration, the situation worsened with escalating public debt crises. Public debt ratios in several Arab countries exceeded 90% of GDP, while in some they surpassed the 100% threshold, directly impacting public policies and the capacity for social spending.

Treating indebtedness and public budgets as purely technical or financial issues overlooks their rights-based dimension. Unjust and unsustainable debts have become a tool for undermining economic sovereignty and a key factor in weakening states' ability to fulfill their obligations toward their citizens' rights, amid the absence of transparency, accountability, and democratic participation in determining public policy priorities. Moreover, austerity policies imposed or adopted under crisis pressure have contributed to dismantling social safety nets, increased the vulnerability of the most affected groups, and deepened inequality within societies.

In this context, unemployment, particularly among youth, is among the most dangerous structural challenges facing the region. Youth unemployment rates in several Arab countries exceed 25%, reaching more than 35% in some—among the highest levels globally. This phenomenon is not limited to the absence of job opportunities alone, but also reflects deep imbalances in adopted economic models and their failure to generate decent and sustainable employment opportunities, as well as disconnect between education and training policies and the needs of the economy and society. This reality fuels forced migration of skilled workers and widespread frustration among youth, carrying significant social, political, and security risks in the medium and long term.

The year 2025, with all its dangerous transformations, necessitates re-posing fundamental questions about the social contract in the region, how public resources are managed, how burdens and profits are distributed, and linking political stability to social and economic justice. From this perspective, the challenge lies not only in crisis management, but in seizing this historical moment to rebuild a developmental path based on accountability, participation, and human dignity, placing peoples' rights at the heart of any project for stability or regional advancement.

The Climate Crisis and Its Impacts on the Arab Region

Alongside political and economic crises, the Arab region faces a dangerous exacerbation of the climate crisis and is among the most vulnerable globally in confronting its consequences, despite its limited contribution to global carbon emissions. Average temperatures in the Arab region have risen at a rate exceeding the global average, and estimates indicate that some areas may witness an increase of up to 4 degrees Celsius by mid-century if current trends continue. This has been reflected in increasing natural disasters, from severe droughts and devastating floods to unprecedented storms, as well as biodiversity degradation and expanding desertification.

Water scarcity stands out among the most dangerous climate challenges in the region. More than 60% of the Arab world's population lives in countries suffering from acute water shortage, with expectations indicating that per capita water share will decline to less than 500 cubic meters annually in an increasing number of countries—well below the water poverty line. This reality has led to a direct threat to food security, as most Arab countries depend on importing more than 50% of their food needs, while climate disruptions and rising global food prices have further deepened the vulnerability of poor and marginalized populations.

Despite the seriousness of these challenges, climate negotiations under the Conference of the Parties (COP) have failed to deliver tangible progress regarding climate finance or industrial countries bearing their historical responsibilities, as commitments related to loss and damage remain insufficient. Moreover, addressing the negative effects of prevailing consumption patterns remains limited and fragmented, leaving regional countries facing multiplied burdens exceeding their financial and institutional capacities.

Technological Development and the Digital Divide in the Arab Region

In parallel, accelerating technological development poses an additional challenge for the Arab region, which is largely classified as a consumer rather than a producer of digital technology. Despite rising rates of internet and smartphone usage, where user percentages exceed 70% in several countries, Arab economies contribution to technology production and digital knowledge remains very limited. Spending on research and development generally does not exceed 1% of GDP in most cases, compared to a global average exceeding 2.5%.

This digital divide negatively impacts economic and cultural development paths and limits opportunities for creating quality jobs, particularly for youth, while also raising serious challenges regarding governance, personal data protection, and digital sovereignty. Weak legislative and institutional frameworks in many Arab countries leave them more vulnerable to privacy violations, data misuse, and the spread of misinformation and fake news, undermining public trust and affecting public discourse and democratic processes. Moreover, nearly complete dependence on cross-border platforms and corporations limits the ability of states and societies to steer digital transformation in ways that serve the public interest and promote digital rights as an integral part of human rights in the modern era.

Migration, Displacement, and Refuge: A Complex Crisis with Rights-Based and Developmental Dimensions

The Arab region is among the most heavily affected in the world by forced displacement, refuge, and irregular migration crises, resulting from the intersection of armed conflicts, economic collapses, climate change impacts, and weak development models. According to United Nations High Commissioner for Refugees (UNHCR) data, Arab countries host and generate more than 40% of the world's total refugees and forcibly displaced persons, with estimates indicating the presence of more than 50 million people including refugees, internally displaced persons, and stateless individuals in the region.

Countries such as Syria, Yemen, Sudan, Palestine, and Iraq rank high globally in numbers of internally displaced persons, while neighboring countries, particularly Lebanon, Jordan, and Egypt, bear the burden of hosting large numbers of refugees relative to the size of their economies and institutional capacities. International Organization for Migration data indicates that the region is also witnessing an escalation in forced migration linked to livelihood deterioration, as economic pressures, rising unemployment rates, declining public services, alongside drought and water scarcity, have become fundamental factors pushing broad segments, especially youth, towards migration. This reality has led to additional pressures on infrastructure and public services in host countries, and fueled increasing social and political tensions, amid the absence of comprehensive policies based on burden and responsibility sharing.

From a rights-based and developmental perspective, displacement and refuge issues cannot be treated merely as an emergency humanitarian matter, but as a direct product of failed economic and social policies, the absence of justice in resource distribution, and accumulated debt crises that have constrained states' ability to invest in social protection and basic services. Moreover, linking the management of these crises to security tools or conditional external financing, without addressing their structural roots, exacerbates the vulnerability of both refugees and host communities and undermines human rights and human dignity.

Outlook for 2026

As 2026 begins, the Arab-Israeli conflict is not expected to witness tangible improvement, at least not before the Israeli elections scheduled for the end of the year, which may produce more moderate parties. However, this does not necessarily guarantee real progress in achieving the legitimate rights of the Palestinian people, especially given the ongoing Palestinian divisions, the weakness of the National Authority, and the lack of soundness and effectiveness of its choices.

On another hand, Israeli current leadership continues to emphasize the necessity of preventing Iran from developing its nuclear capabilities and producing ballistic missiles, while the Iranian administration under Imam Khamenei's supreme leadership insists on its right to these capabilities. This situation reinforces the likelihood of potential escalations in the region and keeps the conflict resolution unattainable in the near future, with the potential repercussions extending to other countries such as Syria, Yemen, Lebanon, and perhaps other regional states, further complicating the political and security landscape in the region.

Based on 2025 events, 2026 is expected to carry additional challenges related to the consequences of ongoing conflicts on political stability, increasing economic and social pressures stemming from debt, poverty, and unemployment crises, intensifying impacts of climate change and drought, alongside the continued technological gap and weak capacity to sustainably manage digital knowledge. Accordingly, strengthening the social protection system, supporting communities' resilience capacity, and redesigning economic and financial policies based on rights, accountability, and participation will be central to preventing further vulnerability in the region, and to transforming these challenges into opportunities for establishing comprehensive and just stability across various regional countries.

 

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