Middle East and North Africa

The World Bank’s Middle East and North Africa (MENA) region works to address some of the most complex development challenges confronting the region today, including fragility and conflict, food security, climate action and the green transition, macroeconomic stability, jobs, digital transition, human capital development, private sector development, and the inclusion of vulnerable groups including women and youth.  

The MENA region encompasses immense economic and demographic diversity that extends from the Maghreb to the Gulf.  According to the World Bank’s October 2024 MENA economic update, the region’s overall gross domestic product is forecast to grow at 2.2% in 2024, up slightly from 1.8% in 2023. The uptick in growth is driven by the Gulf Cooperation Council countries, which are projected to grow at an average rate of 1.9% in 2024, rising from 0.5% in 2023. In all oil-importing MENA countries, growth is expected to decelerate. Fiscal space in several MENA economies is increasingly tight. Debt-to-GDP ratios in several MENA economies increased over the past decade, with acceleration during the pandemic. 

The report highlights windows of opportunity for countries to accelerate sustainable growth by taking actions such as optimizing labor market talent allocation, closing the gender gap, and fostering innovation and private sector led growth.  It also looks at the impact of conflict on development in the MENA region. It shows that had conflicts not occurred in the past 30 years in some MENA countries, GDP per capita would have been 45% higher. This loss is equivalent to 35 years of economic development in the region, underscoring the point that peace and development are intertwined.

By building on the potential of its young, talented population, strategic location spanning three continents, and vast human and natural resources, MENA countries have the opportunity to mobilize stronger outcomes for the region’s growth and prosperity.   The World Bank is supporting MENA countries to help generate opportunities for all people, especially women and youth; strengthen connectivity for shared prosperity; and to build resilience, with a focus on water and energy security. 

Last Updated: Jan 07, 2025

For maximum impact, our work spans across five dimensions: People, Prosperity, Planet, Infrastructure, and Digital. This structure ensures targeted and measurable interventions aligned with MENA's unique challenges and opportunities.

People

• Supporting children, families, and communities by expanding access to quality education and healthcare is at the heart of our work. This is why we are supporting Jordan’s effort in transforming its education system, working in Morocco in accelerating access of higher education, and in Tunisia furthering tertiary education to upskill for those seeking employability.
• Expanding and improving social protection systems to provide critical support for vulnerable populations, including refugees and internally displaced persons. In Iraq, we are contributing to its Social Fund for Development and in Morocco supporting those negatively impacted by the recent pandemic.

Prosperity

• We are committed to catalyzing job creation through support for small and medium-sized enterprises (SMEs), investment in entrepreneurship, and financial market reforms.
• Part of MENA’s untapped potential is its large youth population. To help meet this opportunity, we are partnering with governments to deliver large-scale vocational training programs, aiming to equip young people with skills aligned with market demands.
• Opportunities in diversifying MENA economies abound. This is why we are working with countries in reducing dependency on oil revenues by fostering industries such as renewable energy, technology, and tourism.

Planet

• Water challenges are intensifying with a changing climate. The Bank is committed to partnering and implementing projects that enhance water management, combat desertification, and develop climate-resilient agriculture.
• Across the Maghreb we are working in countries to support the energy transition. This includes developing projects aiming to increase the deployment of solar, wind, and other renewable energy potential, helping meet Paris commitments, and achieve national energy diversification targets.
• MENA has rich terrestrial and offshore biodiversity. The Bank is helping restore ecosystems and build the region’s natural capital through shared water basin management and reforestation programs.

Infrastructure

• The World Bank is committed in financing resilient transport infrastructure and expanding affordable access to electricity and water for underserved communities.
• Rapid urbanization is taking a toll on cities throughout the region. By supporting the development of projects focused on affordable housing, public transportation, and waste management, countries across the MENA region can make its urban centers sustainable and climate resilient.
• The Bank is actively supporting efforts that promote cross-border infrastructure projects to boost trade, create energy-sharing, and further digital connectivity.

Digital

• The Bank is focused on supporting countries build tomorrow’s digital economy. Through our financing and advisory services, we are supporting countries advance affordable internet access and promote digital growth—while ensuring safeguards are in place that limit potential digital inequality.
• We are focused on supporting governments adopt frameworks to foster digital entrepreneurship and protect data privacy and cybersecurity. In addition, the Bank is facilitating cross-border digital trade and harmonizing policies for data flows to strengthen the regional digital economy.

By anchoring these priorities in specific, measurable initiatives, the World Bank aims to help MENA address its immediate challenges while unlocking pathways for inclusive and sustainable growth.

Last Updated: Jan 07, 2025

In the fiscal year that ended on June 30, 2024, new commitments in the region totaled $4.6 billion for 17 operations, with $4.2 billion from IBRD and $340 million from IDA. An additional $87.5 million in special financing was approved for projects in West Bank and Gaza. 

Some of the recent results supported financially by the World Bank include:

• In Yemen, the Bank approved an additional $150 million in financing for the Emergency Human Capital project in Yemen.  This project is expected to benefit at least 19 million people of whom 10 million are women and girls. The Bank also approved an additional $150 million for the Emergency Social Protection Enhancement and COVID-19 Response Project to help millions of Yemenis as they address the chronic food insecurity and vulnerability exacerbated by the ongoing conflict, economic instability, and climate-related shocks. 

• In Egypt, the Bank approved $500 million to expand and strengthen Egypt's flagship social safety net program, Takaful and Karama. This program covers approximately 4.6 million households, representing more than 18 million individuals, nearly three-quarters of whom are women. The additional financing aims to enhance the program's coverage and effectiveness, providing the poorest and most vulnerable households with opportunities for economic inclusion and paving the way for more sustainable livelihoods that do not depend solely on cash transfers. 

• In Jordan, the Bank approved the first women-focused Bank project in the region: the Jordan Enhancing Women’s Economic Opportunities Program for Results.  With a commitment of $221 million, the program aims to improve workplace conditions, increase financial inclusion and entrepreneurship, make public transport safer, and increase access to affordable, quality childcare services. The operation aims to support Jordan’s goal of increasing female labor force participation by 2033.

• In Morocco, a substantial $450 million program approved in June 2023 is designed to enhance financial inclusion and digital entrepreneurship. This project has led to a marked increase in financial service access, with access rates rising from 29% in 2017 to 44% in 2023. The initiative also promotes digital payments infrastructure, supporting broader economic inclusion and technological advancement​. 

• In Jordan, the World Bank approved two new climate-focused projects in Jordan, including a $400 million program supporting the country’s low-carbon goals and integration of climate considerations into economic reforms. Another $250 million is directed at improving efficiency, reliability, and governance in Jordan's electricity sector, aligned with its 31% renewable energy target for the national electricity supply by 2030.

• In Djibouti, the Expanding Opportunities for Learning Project is a significant initiative aimed at increasing equitable access to basic education, improving teaching practices, and strengthening the management capacity of the Ministry of National Education and Vocational Training. With a total funding of US$30.35 million, the project has made significant progress, enrolling over 23,000 out-of-school children, with plans to reach 12,000 more by 2025.

• In Lebanon, a US$200 million Roads and Employment Project has rehabilitated over 500 km of primary and secondary roads in 25 districts across the country and generated 1.25 million labor days for Lebanese workers and Syrian refugees. The project also financed critical routine maintenance works on over 800 km of roads and delivered 5,000 days of labor training to help build the skills of workers.

• In Iraq, the Bank-financed Iraq Emergency Operation for Development Project (EODP) included an education component that has helped the Ministry of Education rebuild 26 schools between 2020 and 2023, providing over 10,000 children with new learning spaces. In addition, more than 5,000 teachers and counselors across eight governorates have been trained in foundational literacy and numeracy skills, as well as psycho-social support. The project is also helping the Ministry improve monitoring and evaluation. Overall, an estimated 135,000 students have benefited from project activities, so far.​​

• In Tunisia, the World Bank is financing $700 million operation to scale up and to support strengthening the national AMEN Social Program. By June 2024, the program supported over 350,000 vulnerable households with monthly cash transfers and provided healthcare services to more than 620,000 low-income families. The program has introduced family allowances for nearly 150,000 children under six, with more than half of payments now digitalized and over 76% of women beneficiaries receiving them digitally. During the COVID-19 pandemic, it delivered emergency cash to around 900,000 households.

The World Bank is also driving impact through its knowledge and analytical reports.  For example, Country Climate and Development Reports (CCDRs) have also been published for several MENA countries, including Djibouti, Egypt, Iraq, Jordan, Lebanon, Morocco, Tunisia, West Bank & Gaza, and Yemen. These reports underscore the critical connection between climate action and development outcomes.

Last Updated: Jan 07, 2025

Partnerships are an essential part of the Bank’s regional strategy, in which collaborative approaches are crucial to scaling-up engagement and achieving meaningful impact across sectors and countries.

The World Bank has built robust partnerships in the region, including with bilateral development partners, multilateral institutions, regional development banks, civil society organizations, think tanks, academia, parliamentarians, and the private sector.  Deepening collaboration with organizations from the MENA region has been a particular focus in recent years, and has yielded many fruitful partnerships, such as with the Arab Coordination Group, the Arab Fund, the Saudi Fund for Development, and the Islamic Development Bank.  In 2023, for example, the World Bank Group and the Islamic Development Bank unveiled a new partnership through which the two organizations are joining forces to accelerate action around better management of water, energy, and food resources in the face of ongoing threats from climate change and fragility; to empower women and young people with skills to grow in jobs and fully participate in the digital transition; and to drive greater regional and cross border trade and cooperation. The partnership is expected to support joint operations that could involve up to $6 billion USD in financing from both institutions through 2026. 

Partnerships in the MENA region take many forms including joint financing of investment operations and trust funds. The World Bank manages numerous trust funds in the MENA region that support a multitude of regional development priorities including economic resilience, social inclusion, climate action, and recovery and reconstruction in FCV contexts. Trust funds include both country-focused initiatives, for example in Jordan, Iraq, Egypt, Libya, Tunisia, Lebanon, Yemen, Djibouti, and West Bank and Gaza, as well as regional and sub-regional trust funds.

Partnerships that support analytical work, advocacy, knowledge exchange, and capacity-building are also a priority in the region.  In FCV settings, for example, the Bank works in close partnership with the European Commission, UN Agencies, and myriad development partners, notably in support of engagement at the humanitarian-development nexus. Critical recent analyses including the Interim Damage Assessment on Gaza, the Rapid Damage and Needs Assessment for Libya, and the Damage and Loss Assessment for Lebanon – each a product of different types of partnerships. 

The MENA Region also leverages the combined strength of the entire World Bank Group by working closely with IFC and MIGA in several key priority sectors such as energy, digital, water, and transport.

Last Updated: Jan 07, 2025