The Interrelationship Between Political and Economic Stability: A Case Study of Arab Countries

This study aims to measure the impact of political stability on economic stability and determine the direction of their mutual relationship by examining selected cases from Arab countries. The main problem of the study crystallizes in understanding the mutual impact between political and economic stability in Arab countries. We note that, despite some similarities in their economic nature, their economic performance and political stability differ significantly. The study assumes a positive relationship between political and economic stability, as political stability directly influences economic indicators, thereby enhancing economic growth and fostering a stable business environment. To test its hypothesis and achieve its goal, the study combines quantitative and descriptive approaches to examine the relationship between political and economic stability across 15 Arab countries during the period (1996-2022). The study reached several conclusions, the most important of which are: We note that economic stability in most oil-producing countries is largely independent of the quality of economic performance, as it is closely linked to global oil markets. In some countries, economic stability contributes to political stability, especially when the economy enhances political legitimacy and buys political peace (such as Saudi Arabia, Jordan, and Iraq). However, in countries that rely on natural resources and possess strong political institutions, the causal relationship between political and economic stability is less clear. The study makes several key recommendations, most notably strengthening democratic institutions and good governance by building strong political institutions that support political participation, multipartyism, and civil liberties, and by enhancing transparency and accountability, thereby strengthening the state's ability to adapt to political and economic crises.