ESCWA Publication: E/ESCWA/CL3.SEP/2025/Insights.1
Country: Arab region, Global, Islamic Republic of Mauritania, Sultanate of Oman
Publication Type: Information material
Cluster: Shared Economic Prosperity
Focus Area: Debt and fiscal policy, Macroeconomics
Initiatives: Debt Optimization to Enhance Fiscal Space, Climate/SDGs Debt Swap
SDGs: Goal 8: Decent Work and Economic Growth, Goal 9: Industry, Innovation and Infrastructure, Goal 13: Climate Action
Keywords: Activities, Africa, Arab countries, Artificial intelligence, Capacity building, Climate, Data quality, Databases, Debt conversions, Debt management, Development finance, Financial instruments, Inter-agency cooperation, Latin america, Mauritania, Oman, Partnership, Policy making, Public debt, Regional cooperation, Sustainable development, Technical cooperation
Advancing sustainable debt solutions: Lessons learned and the way forward
February 2026
Public debt has reached unprecedented levels across the Arab region. In several Arab countries, debt-to-gross domestic product (GDP) ratio has exceeded 90 per cent, which constrains the fiscal space available to them for sustainable development. The mounting debt service burdens are impeding governments from investing in essential services and projections for middle-income countries indicate that external debt service will remain hight throughout 2027. In the face of these trends, there is urgent need for sustainable debt management strategies.
The United Nations Economic and Social Commission for Western Asia (ESCWA), with partners, embarked on a project to equip policymakers across the Arab region with the tools and knowledge needed to design effective medium- to long-term debt financing strategies. The project’s activities align with global mandates promoting debt sustainability, transparency and responsible financing. This report presents the multi-track approach adopted by the project, with an emphasis on innovation, partnership, and tangible impact, while reflecting on lessons learned, key challenges encountered, and the way forward.
Related content
Debt and fiscal policy, Macroeconomics
Public debt has reached unprecedented levels across the Arab region. In several Arab countries, debt-to-gross domestic product (GDP) ratio has exceeded 90 per cent, which constrains the fiscal space available to them for sustainable development. The mounting debt service burdens are impeding governments from investing in essential services and projections for middle-income countries indicate that external debt service will remain hight throughout 2027. In the face of these trends, there is urgent need for sustainable debt management strategies.
The United Nations Economic and Social Commission for Western Asia (ESCWA), with partners, embarked on a project to equip policymakers across the Arab region with the tools and knowledge needed to design effective medium- to long-term debt financing strategies. The project’s activities align with global mandates promoting debt sustainability, transparency and responsible financing. This report presents the multi-track approach adopted by the project, with an emphasis on innovation, partnership, and tangible impact, while reflecting on lessons learned, key challenges encountered, and the way forward.
