Note: I am well aware that some of these countries are not strictly speaking Arab but my definition for this section is countries where Arabic is extensively spoken.

Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, South Sudan, Sudan, Syria, Tunisia, United Arab Emirates, Yemen

See also:

Maghreb Literature

Other links

Arabic Literature
Arabic Literature (in English)
5 Arabic Books to Read ‘Before You Die’
Arabic Literature
Bringing Arab literature to an Anglophone audience
Middle Eastern Writers
The Best 100 Arabic Books (According to the Arab Writers Union)
On Banipal’s ‘100 Best Arabic Novels’
The “Canon” of Modern Arabic Literature?
Database of Arabic Literature
Index of Arabic literature under review at The Complete Review
Take the Arabic Summer Reading Challenge (Editors, translators, and scholars recommend 5 Arabic books (in English) to read before you die)
Arab Writers in English
Home of Egyptian & Arab authors on the Web
One thousand and one delights (Arab writers on the books the world should have a chance to read)
Found in Translation The contemporary Arabic novel
International Prize for Arabic Fiction
The Saif Ghobash Banipal Prize for Arabic Literary Translation
Al Jadid (magazine of Arab culture)
Banipal (magazine of modern Arab literature)
The Role of Women in Arabic Literature
Arab Women Writers
Strong Arab Women Writers
The Arab Women Writers To Read
15 Must-Read Books From the Middle-East
Arab Women Writers:”Are There Any?”
100 Recommended Books by Arab Women
Arabic Political Fiction in English Translation
Arabic Christian Literature
Popular Arabic Literature of the Jews
Littérature de langue arabe (in French)