Résumé:
Finance is a fundamental pillar of economic growth, with domestic credit to the private sector
serving as a vital tool to stimulate investment, enhance productivity, and expand economic
activity. In the Arab context, a critical question arises regarding the effectiveness of this type of
financing in driving development, especially amid structural challenges faced by financial and
banking systems in many countries of the region.
This thesis aims to study the impact of domestic credit to the private sector on economic growth
in a sample of ten Arab countries over the period 1990–2023, employing panel data econometric
methods. Statistical analysis and model estimation were performed using R software. Gross
Domestic Product (GDP) was used as the growth indicator alongside explanatory variables
including investment, inflation, government spending, and unemployment. The results show a
weak and statistically negative effect of domestic credit on economic growth, contradicting
traditional hypotheses.
The study emphasizes that fostering economic growth in Arab countries requires not only
expanding credit volume but also comprehensive institutional and financial reforms to ensure
financing is directed toward high value-added economic activities.
