Arabic speech recognition systems face distinct challenges due to the language’s complex morphology and dialectal variations. Self-supervised models (SSL) like XLS-R have shown promising results, but their size with over than 300 million of parameters, makes fine-tuning computationally expensive. In this work, we present the first comparative study of parameter-efficient fine-tuning (PEFT), specifically LoRA and DoRA, applied to XLS-R for Arabic ASR. We evaluate on the newly released Common Voice Arabic V24.0 dataset, establishing new benchmarks. Our full fine-tuning achieves state-of-the-art results among XLS-R-based models with 23.03% Word Error Rate (WER). In our experiments, LoRA achieved a 36.10% word error rate (WER) while training just 2% of the model’s parameters. DoRA reached 45.20% WER in initial experiments. We analyze the trade-offs between accuracy and efficiency, offering practical guidance for developing Arabic ASR systems when computational resources are limited. The models and code are publicly available.