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Recently, the study of poverty in the Arab countries has gained high importance due to the rise of poverty levels in some countries and the high risks of falling in it in others. This study analyzes the state of poverty in the Arab countries, investigates its development trends, identifies its causes and then relates it to inequality in income distribution. Also, the study examines the dynamics of poverty in the Arab countries and tests the relationship between it and economic growth using econometric modeling in order to assess the economic growth mechanism's ability to reduce the number of poor and reduce their poverty disparities. Besides modeling the factors affecting economic growth in the middle- and low-income Arab countries. The study differs from previous studies in using different scientific and statistical methodologies. It employs a different econometric model specification by including some variables such as good governance and institution since its importance in explaining the causes of poverty. Moreover, the study uses recent database on poverty and modern definitions for poor people based on the new global poverty lines (1.9$, 3.2$, 5.5$ per day) not used in the previous studies (1$, 1.25$ per day). The results of the analysis of poverty dynamics in Arab countries indicate that the number of poor people decreased annually by (0.58%) during the period 1981-2013. This rate will possibility allow most of the Arab countries to exit poverty at the global poverty line of $ 1.9 per day within a period of 10 years provided that their percapita income grows at a rate of 4% per annum, except Sudan, Yemen, Comoros, and Mauritania. Also, the study finds that increasing economic growth rates leads to reduction in the number of poor people and decline in poverty gaps. [ABSTRACT FROM AUTHOR]