Arab nations lost $620 billion as a result of Iraq's 1990 invasion of Kuwait and the ensuing Persian Gulf war, according to a new draft report.

The loss figure includes physical damage, setbacks to economic development and defense costs, says the draft released Sunday.The report - prepared by the Arab League, the Arab Monetary Fund, the Arab Fund for Economic and Social Development and the Organization of Arab Petroleum Exporting Countries - covers all 21 members of the Arab League, including the Palestine Liberation Organization.

It says Kuwait sustained physical destruction amounting to $160 billion and put Iraqi physical losses at $190 billion.

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The report says development was sharply set back in Kuwait and Iraq and, to a lesser degree, in some neighboring countries. It estimates total losses at $185 billion.

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