Most of the Arab countries face the daunting task of accelerating economic growth and creating jobs for a fast growing young labor force. In an open economic environment, export development can help achieve the growth challenge. The paper used a host of quantitative indicators that summarize the extent of Arab export competitiveness. The data used in the analysis are based on trade flows disaggregated at the three level digits (ISTC) for the years 2000 and 2006( ). The results show that most Arab economies face difficulties in sustaining and developing a competitive trade sector because of lagging industrialization and slow structural transformation, weak supply of exportable commodities, excess reliance on natural resources and primary products in low technology sectors, and low level of integration in the global production chains.