As large language models (LLMs) become increasingly integrated into daily life, ensuring their cultural sensitivity and inclusivity is paramount. We introduce PALM, a year-long community-driven project covering all 22 Arab countries. The dataset contains instruction–response pairs in both Modern Standard Arabic (MSA) and dialectal Arabic (DA), spanning 20 diverse topics. Built by a team of 44 researchers across the Arab world—each an author of this paper—PALM offers a broad, inclusive perspective. We use PALM to evaluate the cultural and dialectal capabilities of several frontier LLMs, revealing notable limitations: while closed-source LLMs generally perform strongly, they still exhibit flaws, and smaller open-source models face greater challenges. Furthermore, certain countries (e.g., Egypt, the UAE) appear better represented than others (e.g., Iraq, Mauritania, Yemen). Our annotation guidelines, code, and data are publicly available for reproducibility. More information about PALM is available on our project page: https://github.com/UBC-NLP/palm.

Recent advancements in instruction fine-tuning, alignment methods such as reinforcement learning from human feedback (RLHF), and optimization techniques like direct preference optimization (DPO), have significantly enhanced the adaptability of large language models (LLMs) to user preferences. However, despite these innovations, many LLMs continue to exhibit biases toward Western, Anglo-centric, or American cultures, with performance on English data consistently surpassing that of other languages. This reveals a persistent cultural gap in LLMs, which complicates their ability to accurately process culturally rich and diverse figurative language, such as proverbs. To address this, we introduce *Jawaher*, a benchmark designed to assess LLMs’ capacity to comprehend and interpret Arabic proverbs. *Jawaher* includes proverbs from various Arabic dialects, along with idiomatic translations and explanations. Through extensive evaluations of both open- and closed-source models, we find that while LLMs can generate idiomatically accurate translations, they struggle with producing culturally nuanced and contextually relevant explanations. These findings highlight the need for ongoing model refinement and dataset expansion to bridge the cultural gap in figurative language processing.