This question has been in debate for a long time. Many people on this planet wonder “Why are Arabs so rich”. There are many theories behind rich Arabs and every theory is related to geography, politics, and sociology. This article will explain the reasons behind wealthy Arabs and will also burst some myths.
A Glance At Arab’s Lifestyle
Arabs Culture
Culture holds a great value to the economy of any Nation. Before answering why Arabs are so rich, let us first understand Arabic culture. The Arabic culture is diversified into different subcultures, which are slightly different from other cultures. For example, The Levantine, Egypt and Sudan, Mesopotamia, The Arabian Peninsula, and the Maghreb! Thus, it is not possible to unleash this rich culture in mere words! Language, literature, art architecture, music, etc are an important part of Arabian culture.
Arabs Values
The Arabic values are very different from the outside world! Their family is their topmost priority! For them, their parents and elders are above everyone! They can easily leave their seats for their elders to be seated upon! The richest Arab families are also the best host in the world for their guests! They never shy away from attending and doing anything and everything for their guests. Additionally, they are a firm believer in solidarity and brotherhood! Generosity runs in their families. They are polite and loyal toward each other.
Arabs Come From?
The ancient Arabs are believed to be the people of the Arabian peninsula, who later became the tribes of the Eastern and Southern Syria. According to mythology, Ishmael, the son of Abraham, is the father of the Arabs! Later they diversified themselves throughout countries which now have formed the Arabic world.
Why are arabs so rich?
Following Factors Will Explain “What Make Arabs So Rich”
1. Oil
Any random individual would respond with “oil” if posed the question, “Why are the Arabs so rich?”. Although oil is abundant in the Gulf nations, not everyone who lives in Arab has oil to trade. Oil is critical in helping these Arab nations to develop. Oil is generally exploited by a few wealthy corporations. To level the playing field, the governments of these Arab nations levy a hefty 55 percent tax on such companies’ oil revenues. In this manner, the administration can function without having to take money from the poorer citizens or any other individuals other than the oil companies.
2. Zero Taxation
On some commodities, they have extremely low taxes while on others they have no taxes at all. They have appealing destinations to reside, work, and create enterprises since they have no taxes. Expats and wealthy local entrepreneurs contribute financially and also bring in labor into these nations, boosting economic growth. Within five years, a few of the Arab nation’s Gross Domestic Product (GDP) increased by 100 percent.
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3. The Urbanization Of Cities (Development)
Before the arrival of the expatriates, the worth of their land was probably comparable to that of any other impoverished Arab nation. Nevertheless, during a period of tremendous economic development, the cost of these houses would jump due to increased demand for living space; this is basic economics. Residents would also have fully taken advantage of this opportunity and gone from being impoverished to becoming billionaires merely by being in the location at the correct time. It gets much better for natives since the additional capital gain from trading the land is not subject to tax as there is none.
4. Tourism
In recent decades, Arab tourism has gone a step higher. The now rich Arabs had then planned strategically for tourism. An excellent instance of this can be the hosting of IPL (Indian Premier League) in the Arab nations which boosted tourism to a great extent. Arab people value kindness and generosity and this quality makes them one of the best hosts around the globe.
5. Arab Trade History
Agriculture was the primary job of the ancient Arabians! The Arabs traded in silk, spices, salt, gold, etc. Slave trading was a common practice in Arabian countries. Arabs would engage themselves in gold trading with Ghana and Africa! Hajj trading also resulted in the merchants becoming more successful by selling new items. In modern days, oil trading has become a huge part of the Arabian economy.
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Rich And Poor Arab
Who Is The Richest Arab?
Egyptian businessman and investor, Naseef Sawiris is considered the world’s richest Arab. He is a 6℅ stakeholder in Adidas! He is the owner of the NBA Knicks.
Which Is The Richest Arab Family?
The owner of the NHL Rangers Teams, Naseef Sawiris family is the richest Arab family in the world. Their combined worth is approximately $14 billion.
Top 5 richest Arab countries with GDP
While finding the answer to the question, why are Arabs so rich, most people think that the oil business and trading in oil is the main reason behind the wealth and richness of Arabs! Though it is true that oil reserves are what drive the maximum profits of the Arabs, it is not the single factor behind the rich Arabs. Only a few wealthy organizations have full accessibility to the oil reserves, while the common public still faces oppression! This section will introduce you to some of the rich Arab countries of the world and will take a look at their GDPs!
1. Qatar
Qatar falls under the top 10 richest Arab countries! Is the unemployment rate below 1℅ ! Qatar not only enlists itself as the richest Arabian country but it is also considered one of the richest countries in the world, with a population of a little above 2.9 million!
GDP : $89,948.60
2. UAE
While UAE profits most from tourism, this country has much more to offer to the world economy! According to reports, there is approximately 14℅ year-on-year increase in the number of active business organizations.
GDP : $69,957.60
3. Kuwait
Oil reserves serve as the most profitable earning business venture for this wealthy country! It ranks among the 9th richest countries in the world.
GDP : $51,962.00
4. Saudi Arabia
Saudi Arabia portrays itself as one of the most luxurious and richest Arab countries in the world! Saudi Arabia lives on petroleum production and trading. 18℅ of the global petroleum is produced by Saudi Arabia.
GDP : $46,762.50
5. Bahrain
The noteworthy achievement of Bahrain is that the currency of Bahrain is considered the second-highest valued currency in the entire World! Additionally, the tourism sector, and gas and oil reserves also contribute their fair share to uplifting the economy of Bahrain.
GDP : $43,181.20
Top 5 Poorest Arab Countries With GDP
1. Sudan
Dictatorship, corruption, and war, all have led to the severe downfall of Sudan’s economy! Though it is rich in gold, silver, and uranium, the economy is still much behind other Arabian countries.
GDP: $1600
2. Comoros
The lack of natural resources is the major cause of economic instability in the Nation
GDP: $1378
3. Syria
The Civil War weakened the economic backbone of the country! Several innocents were killed, and many were forced to seek shelter outside the country! Infrastructure was badly affected!
GDP: $870
4. Yemen
Unsustainable utilization of natural resources, combined with militant disputes over the years have contributed to the downfall of the Yemen economy.
GDP: $513
5. Somalia
Though a strong agricultural producer of corn, sesame, vegetables, etc. Somalia could not strengthen its economy due to the growing political unrest.
GDP: $225
Top 5 Richest Arab Man
According to a Forbes report, the rich Arabic names belong to Egypt, Algeria, the United Arab Emirates, Lebanon, and Oman.
1. Naseef Swairis: He is considered the richest Arab in the world. He belongs from Egypt.
Net worth: $8.3 billion
2. Issad Rebrab: Issad Rebrab and his relatives are considered one of the richest Arab families in the world. They belong to Algeria.
Net worth: $4.8 billion
3. Majid al- Futtaim: He and his family belong to the UAE, considered the third richest Arab man in the world by 2020!
Net worth: $3.6 billion
4. Naguib Sawiris: He is an Egyptian businessman. He is the chairman of Weather Investment’s parent company.
Net worth: $3.2 billion
5. Abdulla bin Ahmad al-Ghurair: He and his family belong to the UAE, and he is an Emirati billionaire!
Net worth: $2.8 billion
Top 5 Richest Arab Women
1. Sheikha Amma bint Mohammed Al Thani: She is the richest Arab woman in the world, from Qatar!
2. Maryam Khalfan Al Naeemi: She belongs to the UAE.
3. Laila Gomma Gowaily: She is an Egyptian woman. Considered the third richest Arabic woman.
4. Fadwa Yacoub Al- Humaizi: She belongs to the richest Arabian country, Kuwait!
5. Bahira Magdy Zeid: She also belongs to Egypt.
How Wealthy Are The Arabs?
While it is generally believed that all Arabs are rich and lead luxurious lives, the reality is far from being true. The Gulf Arabs are generally the richest people in the Arab world! The total wealth of Arabian billionaires reduced to about 19.4℅ , dropping by $11.4 billion. The combined wealth declined from $58.7 billion to $47.3 billion.
Conclusion
Note that not all Arabs are well-off and established. Because of political upheaval and corruption, the majority of Arabs are impoverished. The “Arabs” we think of as wealthy come from the Persian Gulf Arab republics from nations like UAE, Oman, Saudi Arabia, Kuwait, Qatar are just a few examples. This is the best answer to your question “Why are Arabs so rich”.
Many qualities, such as devotion, respect, dignity, compassion, perseverance, and self-respect, are shared throughout Arab civilizations and the Arabs have continued to be living examples of these qualities to date which have made them hard workers and independent individuals.
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