The sixty-fifth edition of the Arab Economic Bulletin includes two pivotal studies in Arabic and two articles in Arabic in addition to an article in English.

It addresses issues central to Arab development in light of the historical transformations that the Arab region is going through and the challenges it faces within the framework of the road to reform and enhancing economic efficiency. This allows the Arab economy to join the ranks of developing countries that have created an influential position for themselves in the global economy.

The first study was entitled: "Empowering Arab Competencies in the Digital Age: Towards Qualifying Human Resources and Enhancing the Role of Women in Building the Future", where in light of the great acceleration of technological developments and deep economic transformations, digital transformation has become more than just a strategic choice; it is an urgent necessity to ensure sustainability and competitiveness in the global economy. Modern digital technologies such as artificial intelligence, the Internet of Things and big data are reshaping traditional industries, forcing labor markets to acquire new skills to keep pace with these changes. In this context, the role of Arab competencies as a key factor in adapting to digital transformations and achieving sustainable development in the Arab region is increasing.

This study seeks to explore ways to empower Arab competencies in the digital age, focusing on two main axes: the first is to qualify human resources to meet the needs of the digital economy, and the second is to enhance the role of women in economic and social growth. Although the Arab world is witnessing a boom in the adoption of digital technologies, there are significant gaps in the required digital skills, which requires a reconsideration of education and training policies to match the needs of the future labor market.

The second study was entitled: "Amid the Challenges of Climate Change: Huge Arab Investment Projects in Renewable Energy", where global climate change is a source of concern for humanity, in light of the world's efforts to control this phenomenon, which resulted from various human practices, as the Arctic region warms four times faster than the entire world, causing ice to shrink by an area equivalent to The space of Austria every year, which is a worrying crisis for the world.

Despite the efforts of Arab countries in combating the climate crisis, the 2024 Climate Change Performance Index, issued by the NGO German Watch and the New Climate Institute, revealed that achieving this goal is contingent on significantly reducing fossil fuels.

Morocco (first in the Arab world and ninth globally) is ranked as a high-performing country due to low greenhouse gas emissions, the trend towards increasing energy efficiency, and progress in renewable energy production. The Middle East and North Africa (MENA) region relies heavily on fossil fuels for energy supply and domestic consumption. The MENA region can currently be classified into two main categories: the first category is net energy exporters (GCC, Iraq, Algeria, and Libya) who have significant oil/gas resources and significant price distortions.

The third study, entitled: "The Fuse of the First World Trade War Ignites by Trump's Tariffs", dealt with the global economic effects due to Trump's tariffs, as the features of the global trade war began to form due to the tariffs imposed by the President of the United States of America Donald Trump on 128 countries around the world, including 18 Arab countries, which may fuel the economic situation and ignite a global economic war, because of those tariffs. As the impact of the steps taken by Trump will not be limited to the targeted countries, but will extend to the European Union countries, which President Trump also threatened to impose tariffs on, and to the rest of the world, so that the United States will not survive the steps of Trump, who admitted that Americans may feel economic pain because of the tariffs that were imposed on Canada, Mexico and China, considering that "securing American interests is worth this price."

Faced with this reality, the fundamental question is what would happen if Trump's tariffs were implemented? The answer seems clear: high inflation, slowing growth, and a negative impact on the US economy's global competitiveness. In addition to the Fed's (US central bank) shuffle, its ability to proceed with the path of a rate cut may falter, and the US monetary policy may be forced to continue.

Thus, Trump, who aims through his economic policies to achieve two benefits: the first benefit, which is to pressure trading partners to reach agreements that are satisfactory to him, as he did during his first term, as he used this type of pressure to achieve additional benefits away from the economic field. The second benefit is to strengthen domestic industry and reduce the size of the import bill. These seemingly positive and legitimate ambitions for any president, but they must be achieved through deliberate economic policies that support domestic production and bridge economic gaps rather than waging trade wars and imposing tariffs. Imposing tariffs on imported goods will eventually lead to higher prices of finished products consumed by U.S. citizens, increasing inflation, and negatively affecting spending and the economy in general. This economic gap that Trump is trying to fill will not be done in a healthy and sustainable way, but will lead to counterproductive results that will reflect negatively on the US economy and citizens.

The fourth study was entitled: "Stimulating the Arab Private Sector to Achieve the Sustainable Development Goals", as the private sector is a key player in achieving the sustainable development goals, as it has the ability to accelerate economic growth, create jobs, and drive innovation in various sectors. However, Arab companies face many challenges to their effective participation in this area, which requires the intervention of governments to provide supportive policies and incentives.

Despite the vital role that the private sector can play in achieving the SDGs, there are many regulatory and administrative barriers that limit its effective participation in this area. The main obstacles to effective private sector participation in achieving the SDGs range from inflexible legislative constraints, lack of public-private coordination, and lack of incentives to invest in sustainable projects. Poor transparency and lack of effective monitoring and assessment mechanisms hinder the sustainable implementation of environmental and social initiatives.

In light of the economic and environmental challenges facing the Arab region, it has become imperative for governments to adopt effective policies to motivate the private sector to actively participate in the achievement of the Sustainable Development Goals. These policies can include fundamental changes in the regulatory environment, such as streamlining procedures, providing financial and tax incentives for sustainable projects, and facilitating access to finance.

Moreover, these policies should be supported by incentivizing companies to adopt innovative and sustainable technologies, by allocating resources to support research and development, and by providing oversight and encouragement of the implementation of sustainability standards across all business processes. Government-private sector partnerships can also contribute to ensuring effective coordination to achieve shared economic, social, and environmental goals.

The fifth study was entitled: Sustainable Development in the Arab Region and Europe: SMEs Leading Construction Innovation, and in this article, the importance of sustainable development as a key pillar to address the interrelated challenges of economic growth, climate change, and social justice is addressed. The Arab region, with its young demographics and thriving entrepreneurial spirit, has enormous potential for transformative initiatives. At the same time, Europe, guided by advanced policy frameworks and technological capabilities, offers a roadmap for sustainable outcomes. By bridging these complementary forces, we can create strong synergies that drive effective solutions to shared challenges, from resource efficiency to urban sustainability. This article explores the critical role of startups and SMEs in catalyzing this transformation. It examines opportunities for cooperation between the Arab region and Europe, with a focus on sustainable building practices, highlighting innovations, challenges, and pathways that can redefine the future of the industry.

Startups and SMEs are flexible and adaptable, and are closely linked to the needs of their communities. In the Arab region, SMEs make up nearly 90% of firms and employ millions of people, while SMEs in Europe contribute more than half of their GDP. Its role in addressing sustainability challenges is not negligible. From implementing green building practices to embracing circular economy principles, SMEs are transforming and contributing to systemic change.