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| KSA Leads, UAE Second, and Iraq Surprisingly Ranks |
Who Leads the Arab World in Foreign Currency Reserves? The Numbers Reveal the Surprise
With the acceleration of economic crises and trade tensions globally, questions arise about financial resilience and a country's ability to withstand the volatility of global markets. One of the safety valves and first lines of defense is the foreign currency reserves a country holds. World Bank data even measures them by the number of months of import coverage.
Countries' policies regarding reserve formation or reliance vary to varying degrees, depending on their exposure to different risks, population size, import volume, international relations, and the international standing of their currency. In the Arab world, the picture begins in Riyadh, where Saudi Arabia sits atop the list with a massive reserve approaching $463 billion.
This figure is not merely a financial indicator, but a reflection of a strong oil-based economy and a strategic vision that seeks to diversify income sources through mega-projects within "Vision 2030."
The UAE ranks second, amidst rapid growth and strong reserve coverage of approximately seven months, thanks to a balanced asset management policy that considers both return and risk.
Iraq Surprises the Country
In October 2025, reserves reached $256.9 billion (AED 991.6 billion), according to central bank data. The surprise comes from Baghdad, as despite years of instability, the Central Bank of Iraq holds reserves of $112 billion, thanks to oil exports, which remain the backbone of its economy.
In November 2025, Iraq's foreign currency reserves reached approximately $112 billion, according to data from the Central Bank of Iraq. These levels represent one of the highest reserves in the region after Saudi Arabia and the UAE, covering more than 15 months of imports, thus providing Iraq with a significant safety margin despite internal political and economic challenges.
Libya Ranks Fourth in the Arab World with Large Foreign Currency Reserves
From the Gulf to the heart of Africa, despite political divisions, Libya maintains its position as the fourth largest Arab country with foreign currency reserves approaching $99 billion, covering approximately four years of imports.
Oil and gas exports are a key indicator of economic strength, as Arab countries capitalize on favorable financial conditions by increasing reserves and managing liquidity during periods of recession.
Qatar's central bank's foreign currency reserves rose to $71.7 billion last November, covering 11 months of imports.
Egypt's Reserves Exceed $50.2 Billion
In Cairo, the most populous Arab country, foreign currency reserves stand at approximately $50.2 billion, a significant figure for supporting the Egyptian pound amidst import pressures and debt repayments. These reserves allow Egypt to cover more than six months of imports.
The improved figures at the Central Bank of Egypt coincide with a year that saw improvements in most indicators, with dollar revenues from exports, tourism, and remittances from Egyptians abroad exceeding $100 billion combined. Reserves in Morocco and Algeria
Morocco and Algeria maintain similar levels of foreign exchange reserves, ranging between $39 billion and $41 billion. These figures are not merely data in central bank reports; they are indicators of the strength of these countries and their ability to withstand fluctuations in oil prices, the challenges of inflation, and to ensure the stability of their local currencies.
The Largest Foreign Exchange Reserves in the World
Globally, China holds the largest foreign exchange reserves, exceeding $3.2 trillion, followed by Japan with reserves exceeding $1 trillion. Ultimately, whoever holds the reserves holds the initiative, and in a world full of volatility, these reserves are the first line of defense for the stability of Arab economies.
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