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This study examines the role of fiscal policy in enhancing economic development and addressing economic crises, with a particular focus on Arab economies and taking the COVID-19 crisis as a practical model.The paper begins by situating fiscal policy within the broader framework of macroeconomic policies, outlining its objectives-such as financial, economic, and social balance-and its primary tools, including public spending, taxation, and public debt.Using a descriptive-analytical approach, the study reviews relevant literature and analyzes international and regional experiences in employing fiscal policy to counter economic shocks.The findings reveal that the multiplicity and flexibility of fiscal policy instruments grant it substantial capacity to influence macroeconomic variables when used at the right time and in harmony with monetary and investment policies.The study also shows that the success of fiscal policy in developing countries depends largely on the ability to mobilize domestic resources, rationalize public expenditure, and direct government spending toward productive investment and job creation.However, Arab economies face significant challenges-including limited fiscal space, high debt burdens, and weak production structures-that restrict their ability to apply effective fiscal stimulus during crises.The study concludes with recommendations emphasizing the importance of strengthening national resource mobilization, improving governance, expanding social and health expenditures, and providing targeted financial stimulus packages for the most affected sectors.These measures are essential for achieving comprehensive and sustainable development while mitigating the negative impacts of current and future economic crises.