Purpose: This paper aims to assess the progress in the transition towards knowledge-based economies in the Arab region.

Design/methodology/approach: This paper uses updated secondary data obtained from different sources. It uses both descriptive and comparative approaches and uses the OECD (1996) definition of knowledge-based economy and the World Bank Knowledge Index (KI) and Knowledge Economy Index (KEI) and other indicators often used in the international literature to examine progress towards transition to knowledge-based economies in the Arab region.

Findings: The findings support the first hypothesis concerning poor and slow progress in the transition towards knowledge-based economies in the Arab region. The results corroborate the second hypothesis concerning the variation in transition to knowledge-based economies in the Arab region.

Originality/value: This paper is valuable because it fills the gap in the Arab literature by presenting a more comprehensive analysis andinvestigating recent progress in the transition to knowledge-based economies in the Arab region, since these issues are not adequately discussed in the Arab literature. Moreover, the paper supports the efforts aimed at enhancing knowledge-based economies in the Arabregion. The findings imply that it is essential for the Arab region to implement sound and coherent policies to accelerate and enhance the transition to a knowledge-based economy and to achieve sustainable economic development.

 Keywords: Knowledge, Knowledge-based economy, Knowledge Index, Arab region