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How much does a Big Mac cost in Arab countries? 

The Economist invented the index to offer a lighthearted measure of currency valuation by applying the economic theory of PPP. Shutterstock
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Updated 01 October 2024
Nour El-Shaeri 
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How much does a Big Mac cost in Arab countries? 

  • Big Mac Index reveals currency undervaluation across the region 
  • Cheapest Big Mac was in Egypt, priced at $2.47, and most expensive was in Lebanon, costing $5.13
Updated 01 October 2024
Nour El-Shaeri 

CAIRO: A Big Mac burger costs less on average in Arab countries compared to the US, indicating currency undervaluation in the region.

The latest Big Mac Index reveals that currencies in Saudi Arabia, Egypt, Bahrain, UAE, Lebanon, Jordan, Qatar, Oman, and Kuwait are undervalued when compared to the US dollar, indicating disparities in purchasing power parity across these nations. 

The cheapest Big Mac was in Egypt, priced at 120 Egyptian pounds ($2.47), reflecting a 56.6 percent undervaluation of the Egyptian pound against the US dollar. 

Conversely, the most expensive Big Mac was in Lebanon, costing 460,000 Lebanese pounds ($5.13), indicating a 9.7 percent undervaluation of the Lebanese pound. 

Invented by The Economist in 1986, the index offers a lighthearted measure of currency valuation by applying the economic theory of PPP. This theory suggests that exchange rates should adjust so that a basket of goods and services, including a Big Mac burger, costs the same across different countries when measured in a common currency. 

Most other Arab currencies, including the Kuwaiti dinar, Bahraini dinar, and Omani rial, also showed notable undervaluation in July, highlighting ongoing regional economic imbalances.

Here’s how each country fares in currency valuation and purchasing power:

Saudi Arabia  

The Big Mac Index for July reveals that the Saudi riyal is 11 percent undervalued against the US dollar, with a Big Mac costing SR19 ($5.06) compared to $5.69 in the US. 

The implied exchange rate of SR3.34 per dollar contrasts with the actual market rate of SR3.75, underscoring the currency’s undervaluation. However, after adjusting for gross domestic product per capita, the analysis shows that a Big Mac is 11 percent cheaper in Saudi Arabia, while it should be 12.6 percent cheaper. This suggests the riyal is actually 1.8 percent overvalued when considering local purchasing power. 

This represents a slight shift from July 2023, when the riyal was 9.2 percent undervalued based on the Big Mac Index.  

At that time, a Big Mac in Saudi Arabia also cost SR19, compared to $5.58 in the US, resulting in an implied exchange rate of 3.41. Adjusting for GDP per capita, the 2023 analysis indicated that a Big Mac was 9.2 percent cheaper in Saudi Arabia, but it should have been 11 percent cheaper, suggesting the riyal was 2 percent overvalued. 

This year’s Big Mac Index highlights significant undervaluation across several Arab currencies, continuing a trend observed in the previous year and underscoring ongoing disparities in purchasing power within the region. 

UAE  

In the UAE, a Big Mac cost 18 dirhams in July, implying an exchange rate of 3.16 UAE dirhams per US dollar. However, the actual exchange rate was 3.67 dirhams per dollar, indicating that the dirham was 13.9 percent undervalued. 

When adjusted for GDP per capita, the dirham was still undervalued by 8.4 percent, as a Big Mac cost 11 percent less in the UAE compared to the US. 

This represents a slight increase from July 2023, when the dirham was 12.2 percent undervalued with an implied exchange rate of 3.23 dirhams per dollar. At that time, the GDP-adjusted analysis showed the dirham was 7.7 percent undervalued, with the Big Mac priced 12.2 percent less in the UAE. 

Bahrain  

In Bahrain, a Big Mac was priced at 1.70 dinars in July, implying an exchange rate of 0.30 dinars per US dollar. The actual exchange rate was 0.38 dinars per dollar, indicating a 20.8 percent undervaluation of the Bahraini dinar. 

When adjusted for GDP per capita, the dinar remained undervalued by 9 percent, with the Big Mac costing 20.8 percent less than in the US. 

This marks a slight increase in undervaluation from July 2023, when the dinar was 19.2 percent undervalued with an implied exchange rate of 0.30 dinars per dollar. At that time, the GDP-adjusted undervaluation was 8.4 percent, with the Big Mac priced 19.2 percent less than in the US. 

Kuwait   

In Kuwait, a Big Mac was priced at 1.40 dinars in July, implying an exchange rate of 0.25 dinars per US dollar. The actual exchange rate was 0.31 dinars per dollar, suggesting the Kuwaiti dinar was 19.5 percent undervalued. 

When adjusted for GDP per capita, the dinar was 9.1 percent undervalued, with the Big Mac costing 19.5 percent less than in the US. 

In comparison, July 2023 data indicated the dinar was 18.3 percent undervalued, with an implied exchange rate of 0.25 dinars per dollar. The GDP-adjusted analysis at that time showed the dinar was 10.4 percent undervalued, with the Big Mac priced 18.3 percent less in Kuwait. 

Oman   

Oman displayed the highest level of undervaluation in July, with a Big Mac priced at 1.53 rials, implying an exchange rate of 0.27 rials per US dollar. The actual exchange rate was 0.39 rials per dollar, indicating a 30.2 percent undervaluation of the Omani rial. 

When adjusted for GDP per capita, the rial was 18.6 percent undervalued, with the Big Mac costing 30.2 percent less in Oman compared to the US. 

This represents a slight improvement from July 2023, when the rial was 33.9 percent undervalued, with an implied exchange rate of 0.25 rials per dollar. The GDP-adjusted analysis from that year showed the rial was 25.1 percent undervalued, with the Big Mac priced 33.9 percent less in Oman. 

Egypt  

In Egypt, a Big Mac was priced at 120 Egyptian pounds in July, implying an exchange rate of 21.09 pounds per US dollar. The actual exchange rate was 48.60 pounds per dollar, indicating a 56.6 percent undervaluation of the Egyptian pound. 

When adjusted for GDP per capita, the pound was 44.7 percent undervalued, with the Big Mac costing 56.6 percent less in Egypt compared to the US. 

This marks a deterioration from July 2023, when the pound was 53.1 percent undervalued, with an implied exchange rate of 14.52 pounds per dollar. At that time, the GDP-adjusted analysis showed the pound was 41.1 percent undervalued, with the Big Mac priced 53.1 percent less in Egypt. 

Qatar  

In July, the Qatari riyal displayed notable undervaluation, with a Big Mac priced at 14 riyals, implying an exchange rate of 2.46 riyals per US dollar. The actual rate was 3.64 riyals per dollar, indicating a 32.4 percent undervaluation of the riyal. 

After adjusting for GDP per capita, the riyal was 38.4 percent undervalued, with the Big Mac costing 32.4 percent less in Qatar compared to the US. 

This reflects a slight increase from July 2023, when the riyal was 31.1 percent undervalued, with an implied exchange rate of 2.51 riyals per dollar. The GDP-adjusted analysis from that year suggested the riyal was 38 percent undervalued, with the Big Mac priced 31.1 percent less in Qatar. 

Jordan  

In Jordan, the Big Mac was priced at 2.50 dinars in July, implying an exchange rate of 0.44 dinars per US dollar compared to the actual rate of 0.71 dinars. This indicates the Jordanian dinar was 38 percent undervalued. 

After adjusting for GDP, the dinar was 21.8 percent undervalued, with the Big Mac costing 38 percent less in Jordan than in the US. 

This marks a slight increase in undervaluation from July 2023, when the dinar was 36.8 percent undervalued, with an implied exchange rate of 0.45 dinars per dollar. The GDP-adjusted analysis at that time showed the dinar was 21.2 percent undervalued, with the Big Mac priced 36.8 percent less in Jordan. 

Lebanon  

In July, a Big Mac in Lebanon was priced at 460,000 Lebanese pounds, implying an exchange rate of 80,843.59 pounds per US dollar compared to the actual rate of 89,550.00 pounds. This indicates the Lebanese pound was 9.7 percent undervalued. 

In July 2023, the Big Mac cost 430,000 Lebanese pounds, with an implied exchange rate of 77,060.93 pounds per dollar. The actual rate at that time was 85,500 pounds, suggesting the pound was 9.9 percent undervalued. 

These figures highlight a persistent undervaluation of the Lebanese pound and other Arab currencies, with consistent disparities between implied and actual exchange rates. Despite slight year-over-year variations, the trend of undervaluation remains stable, reflecting ongoing challenges in currency valuation in the region.

Topics: Finance Big Mac currency Inflation valuation food and beverage

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World must prioritize resilience over disruption, economic experts warn

Saudi Arabia’s Finance Minister Mohammed Al-Jadaan urged policymakers and investors to “mute the noise” and focus on resilience.
Updated 23 January 2026
Nadia Al Faour
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World must prioritize resilience over disruption, economic experts warn

  • Al-Jadaan said that much of the anxiety dominating markets reflected a world that had already been shifting for years
  • Pointing to Asia and the Gulf, Al-Jadaan said that some countries had already built models based on diversification and resilience
Updated 23 January 2026
Dalal Awienat Nadia Al Faour

DAVOS: Saudi Arabia’s Finance Minister Mohammed Al-Jadaan urged policymakers and investors to “mute the noise” and focus on resilience, as global leaders gathered in Davos on Friday against a backdrop of trade tensions, geopolitical uncertainty and rapid technological change.

Speaking on the final day of the World Economic Forum in Davos, Al-Jadaan said that much of the anxiety dominating markets reflected a world that had already been shifting for years.

“We need to define who ‘we’ are in this so-called new world order,” he said, arguing that many emerging economies had been adapting to a more fragmented global system for decades.

Pointing to Asia and the Gulf, Al-Jadaan said that some countries had already built models based on diversification and resilience. In energy markets, he pointed out that the focus should remain on balancing supply and demand in a way that incentivized investment without harming the global economy.

“Our role in OPEC is to stabilize the market,” he said.

His remarks were echoed by Saudi Arabia’s Minister of Economy and Planning Faisal Alibrahim, who said that uncertainty had weighed heavily on growth, investment and geopolitical risk, but that reality had proven more resilient.

“The economy has adjusted and continues to move forward,” Alibrahim said.

Alibrahim warned that pragmatism had become scarce, trust increasingly transactional, and collaboration more fragile. “Stability cannot be quickly built or bought,” he said.

Alibrahim called for a shift away from preserving the status quo towards the practical ingredients that made cooperation work, stressing discipline and long-term thinking even when views diverged.

Quoting Saudi Arabia’s founding King Abdulaziz Al-Saud, he added: “Facing challenges requires strength and confidence, there is no virtue in weakness. We cannot sit idle.”

President of the European Central Bank Christine Lagarde stressed the importance of distinguishing meaningful data from headline noise, saying: “Our duty as central bankers is to separate the signal from the noise. The real numbers are growth numbers not nominal ones.”

Managing Director of the IMF Kristalina Georgieva echoed Lagarde’s sentiments, saying that the world had entered a more “shock prone” environment shaped by technology and geopolitics.

Director General of the World Trade Organization Ngozi Okonjo-Iweala said that the global trade systems currently in place were remarkably resilient, pointing out that 72 percent of global trade continued despite disruptions.

She urged governments and businesses, however, to avoid overreacting.

Okonjo Iweala said that a return to the old order was unlikely, but trade would remain essential. Georgieva agreed, saying global trade would continue, albeit in a different form.

Georgieva warned that AI would accelerate economic transformation at an unprecedented speed. The IMF expects 60 percent of jobs to be affected by AI, either enhanced or displaced, with entry-level roles and middle-class workers facing the greatest pressure.

Lagarde warned that without cooperation, capital and data flows would suffer, undermining productivity and growth.

Al-Jadaan said that power dynamics had always shaped global relations, but dialogue remained essential. “The fact that thousands of leaders came here says something,” he said. “Some things cannot be done alone.”

In another session titled Geopolitical Risks Outlook for 2026, former US Democratic representative Jane Harman said that because of AI, the world was safer in some ways but worse off in others.

“I think AI can make the world riskier if it gets in the wrong hands and is used without guardrails to kill all of us. But AI also has enormous promise. AI may be a development tool that moves the third world ahead faster than our world, which has pretty messy politics,” she said.

American economist Eswar Prasad said that currently the world was in a “doom loop.”

Prasad said that the global economy was stuck in a negative-feedback loop and economics, domestic politics and geopolitics were only bringing out the worst in each other.

“Technology could lead to shared prosperity but what we are seeing is much more concentration of economic and financial power within and between countries, potentially making it a destabilizing force,” he said.

Prasad predicted that AI and tech development would impact growing economies the most. But he said that there was uncertainty about whether these developments would create job opportunities and growth in developing countries.

Professor of international political economy at the University of New South Wales in Australia, Elizabeth Thurbon, said that China was driving a Green Energy transition in a way that should be modeled by the rest of the world.

“The Chinese government is using the Green Energy Transition to boost energy security and is manufacturing its own energy to reduce reliance on fossil fuel imports,” she explained.

Thurbon said that China was using this transition to boost economic security, social security and geostrategic security. She viewed this as a huge security-enhancing opportunity and every country had the ability to use the energy transition as a national security multiplier. 

“We are seeing an enormous dynamism across emerging market economies driven by China. This boom loop is being driven by enormous investments in green energy. Two-thirds of global investment flowing into renewable energy is driven largely by China,” she said.

Thurbon said that China was taking an interesting approach to building relationships with countries by putting economic engagement on the forefront of what they had to offer.

“China is doing all it can to ensure economic partnership with emerging economies are productive. It’s important to approach alliances as not just political alliances but investment in economy, future and the flourishment of a state,” she said.

The panel criticized global economic treaties and laws, and expressed the need for immediate reforms in economic governing bodies.

“If you are a developing economy, the rules of the WTO, for example, are not helpful for you to develop. A lot of the rules make it difficult to pursue an economic development agenda. These regulations are not allowing the economies to grow,” Thurbon said.

“Serious reform must be made in international trade agreements, economic bodies and rules and guidelines,” she added.

Prasad echoed this sentiment and said there was a need for national and international reform in global economic institutions.

“These institutions are not working very well so we can reconfigure them or rebuild them from scratch. But unfortunately the task of rebuilding falls into the hands of those who are shredding them,” he said.

WEF attendees were invited to join the Global Collaboration and Growth meeting to be held in Saudi Arabia in April 2026 to continue addressing the complex global challenges and engage in dialogue.

Topics: WEF 2026

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