This systematic review examines psychological capital (PsyCap) which includes hope, self-efficacy, resilience, and optimism alongside career adaptability as psychosocial resources that promote sustainable careers and well-being within Arab contexts, with a particular focus on Algeria. Adhering to PRISMA guidelines, we synthesized 45 empirical studies conducted between 2015 and 2025 from global and regional databases, specifically targeting Arab low- and middle-income countries (LMICs). PsyCap enhances vocational exploration, career commitment, and adaptive coping, thereby increasing life satisfaction and overall flourishing. Career adaptability, which includes concern, control, curiosity, and confidence, serves as a mediator for these effects, supporting the pursuit of decent work in the face of post-COVID labor market volatility and the skill demands driven by digitalization. Youth unemployment remains high in certain countries, influenced by exam-centric education, vocational stigma, and strong familial pressures that shape career pathways. This is especially true for elite university students who are seen as future leaders. The contrast between collectivist norms, which emphasize family and community resilience, and Western individualistic self-reliance underscores the cultural variability in how psychosocial resources impact career outcomes. Many studies predominantly utilize cross-sectional designs (80%), which restricts the ability to draw causal inferences. Additionally, only 15% of these studies focus on interventions, revealing significant gaps in the existing research. This review introduces a culturally sensitive model of psychological capital and career adaptability to address the absence of frameworks specifically tailored to Arab contexts. It informs practical interventions, such as multi-stakeholder collaboration (government, education, and private sector) and culturally tailored curricula, to enhance employability in Arab LMICs. By systematically mapping regional evidence, this study enriches cross-cultural reflections on psychosocial resources for sustainable careers, offering theoretical insights and policy recommendations for navigating volatile labor markets in Arab contexts.