The Middle East and North Africa (MENA) region continues experiencing modest economic performance amid a complex global environment. Real GDP growth reached 1% in 2024, down from 1.7 % in 2023. In 2025, the region's economies are expected to rebound, with GDP projected to grow by around 3.5% (IMF 2025). However, escalating trade tensions and financial market adjustments could disrupt these growth prospects (IMF 2025). Real GDP per capita growth continues to lag behind headline GDP figures. With population growth at 1.3 % in 2024, broadly unchanged from 1.4 % in 2023, income gains remained modest in many MENA economies (World Bank, 2024[1]).
This performance remains uneven across the region, and reflects the cumulative effects of recent global and regional shocks - including the pandemic, Russia’s invasion of Ukraine, ongoing conflicts in the Middle East and tighter global financial conditions, which continue to weigh on the post-pandemic rebound.
Structural vulnerabilities remain elevated across several MENA economies. Sovereign borrowing costs have risen, external financing conditions remain tight, and investor sentiment has weakened - particularly in high-debt and oil-importing countries. These dynamics have contributed to persistent net portfolio outflows - totaling -4.3% of GDP in 2022 for MENA countries, excluding Gulf Cooperation Council (GCC) countries, and a more cautious investment climate. Heavy reliance on domestic funding across fragmented markets has intensified the sovereign-bank
nexus, increasing financial sector vulnerabilities and constraining credit to the private sector.
Across the MENA region inflation decreased from an average of 17% in 2023 to 11% in 2024, though wide disparities persist across countries. Inflation has remained well contained in GCC countries - supported by exchange rate stability - while it continues to be elevated in several MENA countries (IMF 2025).
Despite a more benign inflation outlook, fiscal pressures remain elevated. In some oil-exporting countries, declining hydrocarbon revenues, rising social spending, and investment needs are expected to strain fiscal balances over the medium term. Although primary non-oil fiscal deficits have narrowed in select economies, overall fiscal positions are expected to weaken without continued reform.
A number of governments are taking steps to strengthen fiscal frameworks and improve public finance outcomes. Reform efforts - ranging from the rationalisation of subsidies and modernisation of tax systems to improvements in public financial management - are
Investment and Foreign Direct Investment
Investment momentum remains uneven across the MENA region. Tighter financial conditions, macroeconomic uncertainty, and constrained fiscal space - particularly in oil-importing and highly indebted countries - continue to weigh on domestic investment. Foreign direct investment (FDI) inflows have also been adversely affected by geopolitical risks, labor market mismatches, and regulatory frameworks that in many cases present obstacles to investment.
However, an increasing number of countries are taking meaningful steps to enhance their investment environments. Regulatory issues are increasingly recognized as a key factor shaping FDI flows, and several governments have initiated reforms aimed at reducing regulatory barriers and improving transparency. For example, Egypt and Morocco have prioritized industrial policy upgrades, streamlined trade logistics, and enacted investment legislation reforms to attract diversified capital and strengthen competitiveness.
While investor sentiment remains cautious, the ongoing reforms focused on enhancing the legal and regulatory environment, reducing administrative burdens, and expanding market access are expected to gradually improve the region’s attractiveness to FDI and support broader economic diversification.
Trade and regional integration
Trade integration efforts in the MENA region continue to progress gradually. A number of economies are experiencing a shift toward higher value-added exports, including machinery and manufactured goods— reflecting signs of structural transformation. Broader trade frameworks, such as the African Continental Free Trade Area (AfCFTA) and strengthened EU-MENA partnerships, are providing new key market access, regional cooperation, and cross-border investment.
Countries in North Africa—particularly Egypt and Morocco—have made notable progress in trade facilitation and industrial upgrading, positioning themselves to better integrate into regional and global value chains.
These initiatives are reinforcing broader economic transformation agendas and contributing to enhanced regional competitiveness.
Continued investment in cross-border infrastructure, trade logistics, and regulatory modernization will be essential for unlocking the region’s integration potential, fostering resilience to global shocks, and driving long-term economic growth.
Energy transition
The transition to a low-carbon economy is gaining momentum across the MENA region as countries prioritise climate resilience, reduce reliance on fossil fuels, and pursue more sustainable, diversified growth pathways. Rising energy demand, driven by economic expansion and demographic trends, combined with increased exposure to climate-related risks, underscores the urgent need for cleaner, more efficient energy systems. This transition is creating significant opportunities for foreign direct investment, particularly in clean energy and sustainable infrastructure sectors. As MENA countries accelerate efforts to expand renewable energy capacity and develop green technologies, foreign investors are increasingly drawn to these emerging sectors, recognising the region’s growing potential as a hub for low-carbon innovation.
Investment in renewable energy, green hydrogen, and energy-efficient infrastructure is on the rise, with FDI flows playing a crucial role in the development of key projects and facilitating technology transfer. Solar, wind, and green hydrogen are becoming integral components of national energy strategies, with Egypt and Morocco leading the way in renewable energy infrastructure development. Supported by international partnerships and targeted policy frameworks, these countries are positioning themselves as regional leaders in low-carbon energy. Meanwhile, GCC countries have recently launched large-scale green energy projects, leveraging technological advancements and advantageous natural conditions to strengthen the region’s role as a key player in global low-carbon production and export markets.
The Organisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development (OECD) is an international organisation that works to build better policies for better lives. We draw on more than 60 years of experience and insights to shape policies that foster prosperity and opportunity, underpinned by equality and well-being.
We work closely with policy makers, stakeholders and citizens to establish evidence-based international standards and to find solutions to social, economic and environmental challenges. From improving economic performance and strengthening policies to fight climate change to bolstering education and fighting international tax evasion, the OECD is a unique forum and knowledge hub for data, analysis and best practices in public policy. Our core aim is to set international standards and support their implementation – and help countries forge a path towards stronger, fairer and cleaner societies.
The MENA-OECD Competitiveness Programme
The MENA-OECD Competitiveness Programme is a strategic partnership between MENA and OECD economies, fostering knowledge exchange, expertise, and best practices. Since its inception in 2005, the Programme has worked to advance inclusive, sustainable, and competitive economies across the region through policy dialogue and capacity building. As we mark the Programme’s 20th anniversary in 2025, its mission remains as relevant as ever - supporting reforms that drive economic growth, investment, and job creation in an evolving global landscape.
Under the mandate of the 2021 Ministerial Declaration, the Programme supports policy reforms aimed at mobilising investment, enhancing private sector development, and fostering entrepreneurship as key drivers of inclusive and sustainable growth. With a strong emphasis on the potential of the region’s increasingly skilled youth and women, the Programme continues to play a vital role in shaping economic transformation across MENA.
As the MENA-OECD Competitiveness Programme enters its third decade, its work is as pertinent as ever. The OECD and MENA economies continue to navigate global challenges, and the Programme remains a crucial platform for fostering economic resilience, innovation, and sustainable development. Through ongoing collaboration, it reinforces the region’s ability to attract investment, generate employment, and create opportunities for future generations.
The MENA-OECD Competitiveness Programme in numbers 2023-2024
18 MENA PARTNERS
Algeria, Bahrain, Djibouti, Egypt, Iraq, Joran, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestinian Authority, Qatar, Saudi Arabia, Tunisia, United Arab Emirates, Yemen
12REGIONAL MEETINGS
OECD evidence shows that international peer learning and good practice exchange is highly beneficial to policy reform. Such exchanges can provide local policy makers with insights from policies and programmes that have been tested in other contexts, which can inform their own future policymaking.
60 CAPACITY BUILDING WORKSHOPS
The Programme works with civil servants and business leaders to build national caacity in the areas of focus.
Building capacity leads to more effective refoms and better implementation.
6 AREAS OF FOCUS
The Programme focuses on 6 key areas for Competitiveness in the MENA region.
Each area has a dedicated network of experts who meet on a yearly basis to share knowledge and experience, enriching the policy-making cycle.
MENA-OECD Competitiveness Programme's Structure
MENA co-chair
Tunisia
MENA-OECD BUSINESS ADVISORY BOARD
Co-chairs: Spain and Tunisia
Steering Group
OECD co-chair Turkïye
ECONOMIC RESILIENCE TASK FORCE
Co-chairs: Lebanon, IsDB and Germany
WORKING GROUP ON TRADE AND INVESTMENT
Co-chairs: Jordan and Japan
Regional Networks
WOMEN'S ECONOMIC EMPOWERMENT FORUM
Co-chairs: Egypt and France
International Partners
BUSINESS INTEGRITY NETWORK
Co-chairs: France and Morocco
WORKING GROUP ON SME & ENTREPRENEURSHIP POLICY
Co-chairs: Tunisia and Italy
Regional Partners
African Development Bank
Monetary Fund Islamic Development Bank
of Arab Banks
for the Mediterranean
Supporting investment climate reforms to advance sustainable growth and decent job creation in the Southern Mediterranean.
Mobilising private investment is key not only to spur competitiveness in the Southern Mediterranean, but also to support more broad-based economic growth across the region. Sustainable investments, both domestic and foreign, can advance key sustainable development goals, including job creation, productivity gains, skills development and green growth. Through the EU-OECD Programme on Investment in the Mediterranean, the OECD supported a wide range of reforms and policy initiatives to improve the investment climate and to materialise further the benefits of FDI.
PROGRAMME ACHIEVEMENTS
The EU-OECD Programme on Investment in the Mediterranean has worked with governments and the private sector in Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, the Palestinian Authority, and Tunisia to implement reforms to ensure that investment supports creation of quality jobs – particularly for youth and women – and brings new economic opportunities to the region.
The Programme:
Stakeholders involved: government authorities responsible for investment polices (e.g. ministries of investment, trade, industry, economy, and finance); Investment Promotion Agencies and private sector (e.g. domestic and foreign investors, business associations and chambers of commerce). The Programme also benefited from close cooperation with European Union delegations in the region as well as with the International Labour Organisation (ILO) and International Trade Centre (ITC).
Promoted public-private dialogues to enhance investment in targeted investment windows
More institutionalised and systematic public-private dialogues (PPDs) on investment policy reforms are essential to enhance the competitiveness of strategic sectors and ensure efficient implementation of reforms. The Programme organised several policy dialogues between the private and public sectors from beneficiary economies and peer countries, building capacity, communities of practice and networks to discuss how to promote and implement reforms to attract investments in strategic sectors. These dialogues were guided by issues papers with policy recommendations based on the outcomes of discussions and inputs from relevant stakeholders.
Algeria: Tapping the potential for renewable energy investment
OECD work with Algeria focused on promoting PPDs to enhance the potential of the renewable energy sector in line with the Renewable Energy and Energy Efficiency Plan 2035 and the national objective to develop 15 000 megawatts of electricity production from renewable resources by 2035. Activities included peer learning and sharing of international practices on enhancing regulatory frameworks for investment; streamlining the tendering process; promoting public-private partnerships as a viable strategy to mobilise more financial resources towards the green transition; as well as enhancing incentives to stimulate investment, including in distribution of solar photovoltaic energy.
Egypt: Building capacity to attract private investment in sustainable infrastructure in the SCZone
The OECD worked together with the Suez Canal Economic Zone (SCZone) to build capacity to engage with investors and mobilise private infrastructure investments, particularly in renewable energy projects. Dialogues between SCZone and the private sector community focused on addressing key regulatory and business climate reforms to unlock private investment; enhancing social infrastructure for future SCZone development; aligning infrastructure development with Egypt’s green hydrogen strategy; and leveraging public-private partnerships to maximize the investment potential in the SCZone.
Morocco: Promoting sustainable investment in the agri-food sector
OECD work in Morocco focused on further enhancing the investment climate in the agri-food sector to attract private sector investments in this strategic sector in line with Morocco’s New Development Model. This includes a public-private dialogue organised guided by an issues paper at the margins of Salon International de l’Agriculture in Meknes in May 2023, which focused on improving the regulatory frameworks for investments in the agrifood sector; developing strategies to manage water resources more sustainably; accelerating digitalization and promoting R&D to meet the sectors’ evolving needs, further enhancing human capital and skills; but also promoting responsible business practices.
Investment & Trade
Facilitated regional dialogue on investment policy and reforms
Facilitating regional policy dialogue through peer-learning seminars and capacity-building events on investment regulatory reforms is essential for rethinking and reshaping business environments and regulatory frameworks. As part of the Programme, several regional seminars and dialogues were organised, bringing together policymakers from beneficiary economies and peer countries. These events aimed to build the capacities of government representatives and promote peer learning across various areas of investment policy, sectors, and economies.
This seminar discussed how MENA governments can develop a holistic approach to improving the positive impact of FDI, with a focus on the different policies and institutions necessary to harness investment for skills development. The seminar also took a close look at investment incentives, to foster a discussion on how tax and non-tax incentives can contribute to sustainable development goals, and considerations for reforms.
Regional seminar on the prevention and avoidance of investment disputes (Cairo, July 2023)
The regional seminar focused on the prevention of disputes between State entities and investors, through the establishment of adequate dispute prevention measures and institutional mechanisms. The seminar also provided concrete guidance as to actions that may be implemented by States the occurrence of a conflict and after the escalation of a conflict into a dispute.
Regional seminar on Investment for sustainable development: focus on incentives and skills development (Istanbul, June 2023)
Palestinian Authority: Improving access to finance for MSMEs
The OECD worked jointly with the European Union, the Ministry of National Economy and the Palestine Monetary Authority on improving access to finance for micro, small and medium-sized (MSMEs), which represent more than 95% of all firms, contribute to over 55% of GDP, and employ around 85% of the active working population. Areas of focus included improving the enabling environment for access to finance of Palestinian SMEs and identifying priority reforms to improve financial inclusion, advancing the green and digital transition agenda, as well as improving data availability for SMEs’ access to finance.
Tunisia: Promoting reforms to attract more investments in the pharmaceuticals sector
The OECD worked with the Tunisian authorities to foster investments in the country’s pharmaceutical sector. It organised public private dialogues guided by issues papers with policy recommendations focusing on Tunisia-Europe-Africa cooperation to further integration into regional and global value chains; FDI promotion tools and financing mechanisms; intellectual property protection and technology transfers; and further integration into regional value chains. The OECD also mobilised peer institutions and experts from the MENA region and beyond to share practices with Tunisia’s newly established Medicine Agency on setting up a National Medicine Agency in line with international standards.
Jordan: Implementing investment policy reforms in the ICT sector
The OECD also contributed to Jordan’s digital transformation agenda including through private to private and public-private dialogues, as well as capacity building and peer learning seminars on enhancing the business and investment climate in the ICT sector in line with the Economic Modernisation Vision. Joint efforts focused on promoting FDI in the ICT sector, with a particular emphasis on policy recommendations to improve the business and investment climate in the sector; aligning workforce skills with industry needs; and developing advocacy tools and innovative partnerships between the public and private sectors.
Supporting policy reforms that remove legal, economic, and social barriers to women’s participation in the economy.
Women's economic empowerment is crucial for the transformation of MENA economies, unlocking a significant pool of talent and potential. Despite notable progress over the past decade, the region still faces challenges, including the lowest female labour force participation rates globally. The Competitiveness Programme helps to dismantle barriers and unlock opportunities for women in the MENA region, creating a momentum of change in policies and regulations. This is achieved by utilising OECD working methods like political dialogues, knowledge exchange, and peer learning to drive advocacy efforts.
PROGRAMME ACHIEVEMENTS
During the reporting period the Programme supported MENA countries at both the regional and national levels, identifying the needs and development priorities of the MENA region and supporting reforms through the following initiatives:
The Women’s Economic Empowerment Forum (WEEF): co-chaired by France and Egypt, the WEEF is a regional platform for policy dialogue playing a critical role in supporting policy discussions and setting priorities on reforms targeting women’s access to economic opportunities across all 18 countries of the MENA region. The 2024 regional meeting gathered 150 participants from 11 MENA countries and 7 OECD countries, including government representatives, financial institutions, private sector leaders, civil society organisations as well as international and regional organisations.
The EU-OECD Regional Action for Women's Economic Empowerment in the Southern Mediterranean: launched in November 2024, the project works with eight MENA economies (Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, Palestinian Authority and Tunisia) to promote an enabling policy and regulatory framework for financial inclusion and access to finance for women entrepreneurs. It successfully completed a comprehensive regional stocktaking report on policies, initiatives, and stakeholders in support of women entrepreneurs’ access to finance and financial inclusion in the Southern Mediterranean; developed and consolidated a unique Regional Network of Project Champions from policymakers, financial institutions, and women business support networks.
Country specific projects and contributions have been conducted under this workstream namely in the framework of the Morocco and Egypt Country Programmes.
IDENTIFIEDPROVIDEDCONSENSUS
clear regional and national roadmaps for OECD contribution to enhancing women’s access to finance and financial inclusion in 8 MENA countries in 2025-2027
a strategic framework to advance women’s economic empowerment in Morocco
on a collective way forward, achieved through structured high-level regional policy dialogue
Identified solutions for alleviating barriers to women's financial inclusion
The activities carried out between 2023 and 2024 contributed to the objective of increasing knowledge and use of good international practices and policy tools to support SMEs and the engagement of the private sector. Regional capacity-building contributed to improve MENA policy-makers capacity to design frameworks and policies for SMEs development, including in contexts of high business and labour informality.
The report “From Commitment to Implementation: Advancing Women’s Economic Empowerment in Morocco” has had a meaningful impact by offering a strategic framework to unlock women’s economic potential. It evaluates Morocco’s public policies in line with the OECD Council Recommendation on Gender Equality, which the country joined in 2018. Developed under the second phase of the OECD Morocco Country Programme, the report supports the implementation of Morocco’s third Government Plan for Equality (PGE III).
It promotes a multi-sectoral, inclusive approach that prioritizes transformative care policies to create decent jobs, reduce the burden of unpaid domestic and care work, and challenge gender stereotypes. By addressing socio-cultural norms, the report fosters women's fuller participation in the workforce, thereby contributing to Morocco’s sustainable economic and social development.
The Egypt and Morocco Country Programmes integrated gender-specific components that had a tangible impact on advancing women’s economic empowerment. By complementing regional efforts with tailored national support, the Programmes provided in-depth policy advice and recommendations that informed the design and implementation of gender strategies, action plans, and reforms. In both countries, efforts to improve gender statistics and data played a critical role in shaping evidence-based policies aimed at increasing women’s participation in the labour market and their access to economic opportunities. Key activities in 2023–2024, including stakeholder consultations in Rabat and Cairo and the launch of the Women’s Economic Empowerment Review in Morocco, helped anchor gender equality more firmly in national policy agendas.
MENA-OECD Women's Economic Empowerment Forum 2024
The Women’s Economic Empowerment Forum (WEEF) served as a high-level platform for advancing gender equality across the MENA region, bringing together over 150 participants from 11 MENA and 7 OECD countries. Inaugurated by prominent international and regional officials, including the OECD Deputy Secretary-General and high-level officials from Egypt, France, and the EU, the Forum fostered inclusive dialogue among government representatives, financial institutions, civil society, and the private sector. The diverse and active participation underscored strong regional commitment to accelerating women’s economic empowerment through shared experience and strategic cooperation.
Promoting SME and entrepreneurship policies to boost jobs, innovation and productivity in the MENA region
Policy
Micro, small and medium-sized enterprises (SMEs) are vital to job creation in the MENA region, yet face major challenges, including informality, limited access to finance, and structural barriers. Supporting SME growth and formalisation is key to achieving inclusive, sustainable development. This requires coordinated policies, financial innovation, and green and digital transitions. Public-private dialogue plays a crucial role in shaping effective reforms by aligning policy design with business needs and unlocking the sector’s full economic potential.
PROGRAMME ACHIEVEMENTS
The MENA-OECD Working Group on SME Policy & Entrepreneurship (WG2), co-chaired by Tunisia and Italy, is the Programme’s vehicle to foster regional dialogue and peer learning among MENA economies and OECD countries, regional organisations, and representatives of the private sector. It supports the identification of good policy practices and reforms at the regional level based on the methodology of the OECD SME Policy Index and other corporate tools.
During the reporting period, the Programme also delivered training courses to SME practitioners in the MENA region to enhance their capacity to design and implement SME policies focused on private sector formalisation, increase the engagement of the private sector in the policy cycle through structured public-private dialogues, and leverage SME-related statistics aligned to international standards.
Through capacity building activities, regional dialogues and country-specific projects in 2023-24 the Programme:
PROVIDEDFACILITATED CONTRIBUTED
targeted policy responses to the heterogeneous population of SMEs in the region to promote growth and decent jobs
the exchange of experience in key areas such as access to finance, green and digital transitions.
to improving business environments for SMEs and entrepreneurs.
Enhanced policy-making capacity to support SME development in contexts of high informality
The activities carried out between 2023 and 2024 contributed to the objective of increasing knowledge and use of good international practices and policy tools to support SMEs and the engagement of the private sector. Regional capacity-building contributed to improve MENA policy-makers capacity to design frameworks and policies for SMEs development, including in contexts of high business and labour informality.
Informality and Structural Transformation in Egypt, Iraq and Jordan: A Framework for Assessing Policy Responses in the MENA Region
Published in 2024, this publication offers an innovative framework for the MENA region, enabling policymakers to strategically evaluate and select policies that foster formalisation while achieving key economic and social objectives. By allowing for the anticipation of policy impacts on informality, the publication equips governments to navigate the complexities of the informal economy with higher effectiveness.
13th
Meeting of the MENA-OECD Working Group on SME and Entrepreneurship Policy
May 2024
The Programme pursued multilateral cooperation to promote better SME policies region tackling a complex policy landscape. The Working Group agreed on the priority of further strengthening international collaboration and good practice exchange to foster greater policy coherence across countries. The Working Group defined a unified direction focused on leveraging cooperative frameworks to collectively improve the business environment for SMEs throughout the MENA region. These include:
• Coordinated regional actions as essential for diversifying SME access to finance and improving financial literacy.
• The value of regionally aligned efforts to simplify administrative procedures and bolster skills development, thereby supporting the formalisation process.
• Supporting SMEs through the green and digital transitions via regional cooperation, including resource pooling and joint initiatives.
• Effective public-private dialogue, ideally supported by regional mechanisms, for ensuring relevant policy design.
Capacity training for policy-makers September 2023 & 2024
Through increasing knowledge and peer learning, the trainings for SMEs practitioners in cooperation with the IMF Kuwait Training centre contributed to equipping participants with further knowledge and capacity to create sound policies aimed at the region’s formalisations efforts. Participants’ exposure to the trainings supported their ability to implement specific changes in national SME institutional set-ups for business and labour formalisation, including tackling regulatory and legal frameworks for access to finance, social security and taxation and organise structured public-private dialogues.
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Business Integrity
Fostering effective anti-corruption reforms in MENA through collective action and business integrity initiatives
While several MENA countries have recently adopted broad anti-corruption strategies and laws, corruption is still perceived as very high and acts as a key obstacle to economic growth, business development, undermining citizens’ trust in government and political stability. Integrity is central to the development of competitive and open economies in which growth and opportunities are sustainably and
Equipped business integrity practitioners with the tools to implement anti-corruption measures
Promoting business integrity is central to the Programme’s efforts across the MENA region. In Algeria, collective action roundtables and academic workshops advanced anti-corruption measures in key sectors and promoted integrity education. In Saudi Arabia, initial dialogues and workshops mobilised public, private, and academic actors around collective action and corporate compliance. In Yemen, multi-stakeholder dialogue on anti-corruption and business integrity and an anti-money laundering seminar strengthened institutional capacity and fostered cooperation in high-risk sectors. These initiatives have laid the groundwork for more transparent and accountable business environments.
In Algeria, the Programme advanced anti-corruption efforts through a series of roundtables and academia workshops. Two collective action roundtables were held in Algiers (March 2023 and April 2024), bringing together stakeholders to develop and endorse concrete recommendations for anti-corruption measures in the investment, trade, and tax sectors. These events culminated in high-level endorsement of shared commitments and principles. In parallel, the Programme promoted academic integration of international anti-corruption standards, holding workshops at the National School of Management (HEC Kolea, March 2023) and the University of Oran (April 2024) to engage students, faculty, and academic institutions in fostering a culture of integrity.
In Saudi Arabia, the Programme launched its activities with a kick-off event in Riyadh (January 2024) to secure national stakeholder engagement. This was followed by a robust set of initiatives in October 2024, including the first collective action roundtable bringing together public and private and civil society sector stakeholders, held at Imam Mohammad Ibn Saud University in partnership with Nazaha, the national anti-corruption agency. The roundtable identified priorities and challenges for fostering the creation of Collective Action initiatives in Saudi Arabia. Additionally, a workshop on integrating anti-corruption topics into academic curricula and an awareness-raising seminar for public officials were held, focusing on the government’s role in supporting private sector compliance and promoting corporate integrity.
Under the EU-OECD Project "Promoting Economic Resilience in Yemen", the OECD strengthened anti-corruption efforts by engaging key stakeholders through capacity-building and dialogue initiatives. Two major events were held in Amman in September 2023: a Multi-Stakeholder Dialogue on Anti-Corruption and Business Integrity, which brought together Yemeni authorities, private sector actors, civil society, and international experts to discuss corruption risks in the energy and banking sectors; and an Anti-Money Laundering Seminar, where Yemeni officials, regional experts, and representatives from international institutions such as the IMF and World Bank shared practical strategies to strengthen cooperation and institutional capacity.
Business Integrity
Fostering economic resilience in MENA to tackle short-term challenges and build long-term stability
Conflict and socio-political frictions can lead to significant human, social and economic costs, creating adverse regional and international effects that disrupt stability and economic activity. The scale and nature of conflicts in MENA economies during the past decade make resilience a regional priority. Promoting resilience requires addressing short-term issues while providing long-term solutions that can minimise the impact of future shocks.
PROGRAMME ACHIEVEMENTS
The MENA-OECD Economic Resilience Task Force (ERTF), chaired by Germany and Lebanon, is the Programme platform that gathers economies from the region to address the economic challenges of conflict and fragility to sustain growth. It has been a space for dialogue on fragility-related policy discussions and has a critical role in advancing work on investment in fragile contexts.
In partnership with the European Union, the OECD is undertaking country-specific projects on economic resilience in fragile contexts:
The EU-OECD Project on Promoting Economic Resilience in Yemen works towards stregthening the socio-economic resilience of Yemen, laying the groundwork for viable conditions for economic growth and private sector development.
The EU-OECD Project on Promoting Public-Private Dialogue (PPD) in Libya supported active economic dialogue between Libya’s public and private actors. The Programme contributed to a more inclusive policy making cycle, laying the groundwork for the necessary economic transformation policies that can lead to post-conflict recovery and the diversification of Libya’s economy.
Through capacity building activities, regional dialogues and country-specific projects in 2023-24 the Programme:
SUPPORTEDPROMOTED
the baseline functioning of central economic institutions in Yemen
an active dialogue, built on trust and collective action, between policy makers and private sector representatives in Libya
RAISED AWARENESS
on the building blocks for macroeconomic stability in fragile and post-conflict contexts
Promoted public-private dialogue in Libya
In 2023-24 in Libya, public-private dialogue (PPD) activities reached five economic sectors across four cities, culminating in the establishment of a national PPD platform and steering committee. Through extensive subnational consultations and sector-specific dialogues, the project has brought together a wide range of stakeholders from the Ministry of Economy, the Prime Minister’s Office, business associations, and municipal actors. Over 200 public and private stakeholders were actively involved across 45 dialogue sessions.
National public-private dialogue
Upon the successful completion of local PPDs, the groundwork was laid for a national PPD session, bringing together policy makers and private sector representatives from the four cities together. This national PPD examined the five economic sectors and proposed tangible reform roadmaps that prioritised regulatory reform and private sector incentives. the outcomes were indorsed by a technical steering committee, comprised of public officials and private sector representatives, that is seeing through these essential reform policies.
Local public-private dialogue
Public-private dialogue exchanges took place in four cities: Benghazi, Sebha, Tripoli and Misrata. The five economic sectors were discussed at this subnational level, namely banking, ICT, infrastructure, transportation and agriculture. These focused meetings for local policy makers, chambers of commerce and leading business owners created a space for objective exchanges on inclusive policy reform.
Capacity Building Workshops
Peer-learning exchanges in Jordan on ICT and on agriculture in Italy, in partnership with CIHEAM,
Supported economic resilience in Yemen
In 2023-24 in Yemen, the project engaged more than 200 public officials from 12 economic institutions through workshops, peer exchanges, and technical assistance. The Ministry of Planning and International Cooperation (MoPIC) has played a central role in mobilising national ownership, supporting strategic outreach, and guiding the reform agenda.
The OECD has delivered tailored support tailored support to Yemen, helping design more effective policies and strengthen institutional resilience amid ongoing challenges. A wide range of capacity-building activities—covering fiscal governance, sovereign cash flow management, MSME access to credit, financial consumer protection, financial education, anti-money laundering, and statistical governance—enabled national institutions to make tangible progress on several fronts. This support contributed directly to the creation of a national Statistics Task Force and the validation of a Statistical Priority Action Plan, marking a significant step toward more robust data governance.
The project has also supported the Economic Team of the Presidential Leadership Council (PLC) in developing an Economic Rescue Plan, providing a critical framework for economic recovery and coordination. Furthermore, the Project has delivered a digital knowledge sharing platform (www.resilience-yemen.org) and e-learning modules that have supported a wider dissemination of technical trainings policy analysis to policy makers in Yemen.
Policy dialogue workshops and capacity-building sessions across key economic areas
Under the EU-OECD project Promoting Economic Resilience in Yemen, a broad range of capacity-building exercises has been delivered to strengthen the skills and institutional effectiveness of key Yemeni economic actors. The activities have focused on core areas of the economy such as fiscal and budgetary governance, tax and financial policy, banking regulation, and support for micro, small, and medium enterprises (MSMEs). Delivered in coordination with regional and international experts, these efforts have enhanced policy design capabilities, improved institutional coordination, and laid the groundwork for more effective public-private dialogue and donor engagement in Yemen’s challenging operating environment.
Public-Private Dialogue activities aimed at institutionalising structured engagement
Public-private dialogue (PPD) efforts have laid the foundation for structured and sustainable engagement between Yemeni public institutions and the private sector. Through virtual consultations and in-person sessions held between 2023 and 2024, stakeholders collaboratively explored key policy priorities across renewable energy, investment, and trade facilitation. These efforts culminated in focused sectoral PPDs in Amman in June 2024, which advanced dialogue on the viability renewable energy in Yemen and reforming the necessary investment frameworks.
Delivering tailored policy support and strengthening institutional resilience through OECD expertise
Phase II of the project
In November 2024, Phase II of the project was launched. Building upon the foundation established in Phase I of the project, the Action is dedicated to enhancing the capabilities of Yemen's central economic institutions in critical areas essential for economic recovery and resilience, in line with OECD standards and best practices. Continuous support will be provided to key entities such as the Ministry for Planning and International Cooperation (MoPIC), the Central Bank of Yemen, Aden (CBY), Ministry of Finance (MoF), Tax Authority, the Prime Ministry, the Presidential Leadership Council’s Economics Team, The Executive Bureau for Aid Absorption, Central Statistics Office (CSO), the Ministry of Electricity and
Strategic governance and steering committee meetings to guide the project
High-level steering committee meetings played a critical role in guiding the strategic direction of the project and ensuring alignment with national priorities. The third meeting in October 2023 enabled stakeholders to assess concrete progress on financial inclusion, statistical development, and public-private dialogue, while validating key reform priorities in fiscal, monetary, and governance areas. The fourth meeting in June 2024 brought together senior representatives from the EU, the Government of Yemen, and OECD directorates to review achievements and set the agenda for Phase 2— reinforcing strong ownership and continued collaboration at the highest levels.
EU-OECD in the city of Aden, Yemen, speaking to local businesses on private sector reform priorities.
Mobilising private sector innovation for more resilient and integrated economies
By leveraging the combined impact of development and business solutions, public-private dialogue (PPD) allows to identify pressing concerns, implement inclusive and workable solutions and further mutual understanding and trust among economic actors. PPD is also particularly valuable in transition environments, as it contributes to consolidate peace and stability as well as helps rebuild the economy through private sector development.
PROGRAMME ACHIEVEMENTS Public-Private Dialogue
The MENA-OECD Business Advisory Board (BAB) is a dedicated regional platform for public-private dialogue on policy solutions to immediate and long-term challenges throughout MENA. Open to private sector organisations from the members of the MENA-OECD Competitiveness Programme and OECD countries, it is a unique network of business associations creating opportunities for networking, sharing knowledge and best practices across MENA and OECD countries.
During the reporting period the Programme has successfully mainstreamed the principles and methodology of public-private dialogue throughout its workstreams. From policy areas such as investment and trade to business integrity, public-private dialogue is a crucial tool for inclusive and effective reforms.
Through capacity building activities, regional dialogues and country-specific projects in 2023-24 the Programme:
Mainstreamed public-private dialogue throughout the Programme
In 2023-24 public-private dialogue has been an essential tool for the MENA-OECD Competitiveness Programme. The in-house methodology has been tried and tested and applied to all areas of the Programme and has deliviered shining
Improving the business climate
In the framework of the EU-OECD Programme on Investment in the Mediterranean the Proramme organised regional and national public-private dialogues with the objective of selecting key reforms to improve the investment business climate in selected sectors of the focus economies, such as the pharmaceutical sector in Tunisia, infrastructure in Egypt, agrifood in Morocco, ICT in Jordan, and renewable energy in Algeria.
Collective action for business integrity
Collective action brings together organisations to raise standards of integrity and fair competition in business, within or across certain industrial sectors, between the public and private sectors and involve the participation of civil society and academia. It is included in the 2021 OECD Anti-Bribery Recommendation. During the reporting period the Programme launched collective action initiatives in Algeria, Egypt and Saudi Arabia.
Public-private dialogue for economic resilience
Through public private dialogue, the Programme aims to contribute to the adoption of the necessary economic transformation policies that can lead to post-conflict recovery and the diversification of economies. Public-private dialogue is at the heart of the EU-OECD Project on Promoting Public-Private Dialogue in Libya and plays a key role in the EU-OECD Programme on Promoting Economic Resilience in Yemen.
Morocco Country Programme
Strengthening institutions and advancing policy reform in Morocco through OECD expertise and best practices
The OECD has been supporting Morocco’s commitment towards achieving better social and economic development policies for 20 years, through leveraging OECD’s methodology, tools, and best practices. This longstanding partnership led Morocco to become the first country in the MENA region to benefit from such an advanced form of co-operation.
The OECD implemented the first phase of the Country Programme between 2015 and 2018. Following the positive evaluation of the first phase, the OECD External Relations Committee welcomed Morocco’s request to engage in a second phase. The second phase of the Morocco Country Programme produced several cross-cutting effects within Moroccan administrations, particularly in the areas of data, statistics and indicators.
PROGRAMME ACHIEVEMENTS
Strengthened interministerial coordination and coordination between different levels of government, accompanied by improved public policy coherence, enabling more harmonized and effective government action.
Consolidated consultation mechanisms between the government, civil society, and the private sector, promoting greater stakeholder inclusion and decisions better adapted to socioeconomic realities.
Increased the integration of the gender perspective into public policy design, ensuring that policies respond more equitably to the specific needs of each gender and contribute to reducing inequalities.
Strengthened the territorialization of the government's strategic approach, ensuring a more refined adaptation of public policies to local realities and more balanced territorial development, while improving the effectiveness of government actions on the ground.
Optimised use of data and indicators to guide the design and implementation of public policies, thus ensuring more informed and effective decisions.
SUPPORTED CONTRIBUTED ADVISED
development of economic forecasting and analysis structures at the Financial Studies and Forecasting Department and the Treasury Department.
to the establishment of effective monitoring and evaluation systems on policy reforms, bringing them into alignment with OECD standards & norms in urban policy
Supported impactful policy reforms aligned with Morocco’s development vision
Economic growth and investment
The Country Programme contributed to strengthening Morocco’s economic development and investment climate by enhancing the institutional capacities of key economic bodies, such as the Directorate of Studies and Financial Forecasts and the Treasury Directorate, through the development of advanced economic forecasting and analysis tools. The permanent establishment of a Moroccan economic office at the OECD with seconded national staff deepened collaboration and sustained expertise exchange. The Programme also supported the Observatory of TPMEs in improving data collection and survey methodologies on industry, while helping the Ministry of Economy and Finance revise its approaches to productivity and human capital. Investment strategies were made more coherent across national and subnational levels, fostering better resource allocation and territorial synergies. Furthermore, the promotion of responsible business conduct reinforced sustainable economic practices and contributed to a more ethical, internationally aligned business environment.
Human capital
Territorial Development
The Country Programme supported in advancing human capital development, particularly in education and gender equality. It supported the creation of a new teacher training module focused on learning assessment, enhancing the quality of education from the ground up. On gender equality, the Programme played a central role in shaping the 2023–2026 Government Plan for Equality and in mainstreaming gender considerations across public policies. This included piloting gender-sensitive budget tagging in two ministries, identifying gender-responsive objectives and indicators, and conducting new sectoral gender analyses. The establishment of an inter-ministerial committee brought together gender focal points across government to ensure coherent and coordinated action. Robust monitoring and evaluation systems were put in place, integrating clear gender performance indicators. Additionally, sex-disaggregated indicators were developed to measure education, poverty, employment, unemployment, and gender-based violence across six pilot regions, laying the groundwork for more inclusive and data-driven policymaking.
The Country Programme contributed to the creation of a new central directorate for territorial observation and supported the integration of urban planning, housing, and territorial development under a single ministry. Strategic guidance led to the formalisation of a national urban policy aligned with OECD standards, enhancing coordination across sectoral programmes. Regional cooperation was strengthened through the launch of inter-municipal planning schemes and support for regional development programmes, including the drafting of implementing decrees for their design, monitoring, and evaluation. The Programme also reinforced administrative devolution through the national charter on decentralisation and the establishment of regional governance mechanisms, such as the Secretariat General for Regional Affairs. Investment facilitation benefited from the reform of Regional Investment Centres and the creation of a Unified Regional Investment Commission. Administrative efficiency was further advanced through simplification of investment-related procedures and the development of digital governance tools like the SI-Géoportail, which now integrates six territorial indices. A new project monitoring system at the Ministry of Interior now enables better oversight of regional development projects nationwide, ensuring more coherent and effective territorial policy implementation.
Country Programme
Egypt Country Programme
Supporting Egypt’s structural reforms and sustainable development through the OECD Country Programme
The Country Programme encompasses 35 projects across five strategic pillars: inclusive and sustainable economic growth, innovation and digital transformation, governance and anti-corruption, statistics and monitoring, and sustainable development.
Since its inception, the Country Programme has driven substantial progress in advancing economic reforms, strengthening institutional capacities, and supporting Egypt’s transition toward a more competitive, inclusive, and sustainable economy.
PROGRAMME ACHIEVEMENTS
COORDINATED
35 projects across the OECD in close collaboration with the government of Egypt
SUPPORTED MAINSTREAMED GENDER
policy reform in line with Egypt's ambitious reform agenda
Economic Resilience and Structural Reform
A major milestone of the Egypt Country Programme was the launch of the first-ever OECD Economic Survey of Egypt in February 2024. The Survey acknowledges the economy’s resilience in the face of global shocks, current account deficits, and high public debt. It also emphasizes the need to improve the business climate, notably by reducing the state’s economic footprint, improving access to finance, and accelerating digital transformation. Its 60 policy recommendations have been integrated into Egypt’s National Structural Reforms Program.
Trade and Regional Intergration
The OECD’s Trade in Value Added initiative provided insights into Egypt’s role in global value chains. This evidence-based approach has helped identify opportunities under the African Continental Free Trade Area (AfCFTA) and expand trade partnerships with the EU and Gulf countries.
a strategic approach that integrates a gender lens across government action and policy decisions
Financial Inclusion and Literacy
The Programme supported the Central Bank of Egypt in developing its National Financial Literacy Strategy, aligning more closely with international best practices and OECD standards to enhance financial inclusion and consumer awareness.
Harnessing OECD expertise for a holistic policy reform aligned with Egypt’s Vision 2030
Innovation and Digital Transformation
The OECD artificial intelligence Review of Egypt provides guidance for the second iteration of Egypt’s AI Strategy. The Review highlights the need for a clear mandate and adequate budget to implement the strategy effectively. Interdisciplinary collaboration with AI ecosystem actorsincluding researchers, policymakers, industry, and civil society - is also essential for understanding AI’s implications and advancing its strategic goals.
Tax Reform
Green Transition and Climate Action
As part of Egypt’s Vision 2030, the government is committed to turning environmental challenges into opportunities. It has taken steps to move towards more sustainable waste management and address air pollution, which remains a health concern. Egypt has significant potential to accelerate its clean energy transition. While environmental information and data have improved overall, public participation in environmental decision making needs to be further enhanced. This is the first Green Growth Policy Review of Egypt. It examines progress towards sustainable development and green growth over the past decade. The 40 recommendations aim to help Egypt improve its environmental performance, giving a special focus to building climate-smart, resilient and inclusive cities.
The Programme has been instrumental in advancing administrative reforms, legislative improvements, and regulatory enhancements. In particular, the OECD has supported Egypt in implementing international tax standards and enacting significant legislative tax reforms. The introduction of Value Added Tax on e-commerce and transfer pricing legislation are significant achievements. The OECD has also supported Egypt in building the capacity to counter cross-border tax evasion and tax avoidance and to tax multi-national enterprises fairly and effectively.
Gender Equality and Inclusive Growth
Promoting gender equality remains a core priority. Egypt’s leadership in the MENA-OECD Women’s Economic Empowerment Forum (WEEF) highlights its commitment to inclusive development. The Country Programme aims to foster inclusive economic growth, with a specific focus on enhancing women’s economic empowerment and their labor force participation in Egypt. This effort is supported by the OECD's Economic Survey of Egypt, which addresses the gender gap in the labor market. Integrating a gender equality perspective across all relevant projects of the Country Programme is central to promoting inclusivity and competitiveness in the Egyptian economy.
Country Programme
Leveraing OECD expertise to support Saudi Arabia's reforms for its Vision 2030
During the reporting period the Programme worked as the focal point for the OECD-Saudi Arabia Action Plan, coordinating inputs from across the OECD for a comprehensive Action Plan.
As Saudi Arabia is modernising its institutions, economy and society, with transformative economic and social reforms embodied in the country’s Vision 2030, the OECD-Saudi Arabia Action Plan defines strategic areas of cooperation that leverage OECD expertise to support Saudi Arabia, anchoring its policy reforms with international standards and best practices. Rooted in mutual learning and shared interests, the Action Plan allows both parties to gain from each other’s experiences and insights.
PROGRAMME ACHIEVEMENTS
SUPPORTED COORDINATED DESIGNED
Saudi Arabia in defining key areas for collaboration in the action plan
expertise across seven directorates
Launch of the OECD-Saudi Arabia Action Plan for strengthening cooperation
On December 5, 2024, the OECD-Saudi Arabia Action Plan for strengthening cooperation was launched in Riyadh, bringing together representatives from over 20 Saudi public institutions and all OECD directorates involved in the initiative. The event provided a comprehensive overview of the OECD's work and facilitated in-depth discussions on key policy areas covered by the cooperation.
Signature of a Memorandum of Understanding (MoU) for Cooperative Activities on 17 January 2024, in the margins of the World Economic Forum in Davos by the OECD Secretary-General and the Saudi Minister of Economy and Planning, H.E. Mr. Faisal F. Alibrahim, to strengthen the co-operation in several policy areas to support Saudi Arabia’s Vision 2030 and explore the Kingdom’s potential alignment with relevant OECD standards and best practices. The MoU sets out a non-exhaustive list of broad areas of cooperation that pave the way for future
Driving competitive, inclusive and sustainable growth through global expertise
THE ACTION PLAN
Pillar 1: Good governance
Saudi Arabia’s Vision 2030 emphasises the importance of transparency, accountability, and good governance as key components of the Kingdom’s efforts to improve public administration, combat corruption and build a fair and sustainable economic environment.
Projects:
• Support to Saudi Arabia’s Regulatory Impact Assessment (RIA) System
• Support to Saudi Arabia’s Efforts to Fight Foreign Bribery
• Advancing the Publication of Government Data
• Indicators of Regulatory Policy and Governance (iREG)
Pillar 2: Open markets and economic integration
Creating a level playing field is essential for fostering fair competition and economic integration. This necessitates the establishment of sound policies in key areas such as corporate governance, finance, investment, competition, small and medium enterprises (SMEs), entrepreneurship, trade facilitation, and anti-corruption. The Action Plan helps Saudi Arabia assess its performance and identify areas for reform. It offers evidence-based policy recommendations and best practices for systematic approaches to policymaking and implementation based on OECD standards.
Projects
• Trade facilitation: Analyses, Services Trade Restrictiveness Index (STRI) completion and Review of Digital Trade
• Support to Corporate Governance and Corporate Finance
• Review of Investment Policy
• Competition Assessment of Laws and Regulations
Pillar 3: Inclusive and sustainable societies
Saudi Arabia and the OECD recognise the importance of fostering inclusive and resilient economic development. By advancing initiatives in environmental sustainability and modernising education with emerging technologies, the Action Plan aims to drive sustainable economic growth, reinforce social cohesion, and improve overall societal well-being.
Projects
• Skills in a Digital Age: The Impact of Digitalisation, AI, and Micro credentials on Learning
• Economic Assessment of Water
• Support to Saudi Arabia’s Education and Training Evaluation Commission (ETEC) on Innovative Evaluation and Assessment Practices
Arabia Action Plan
Aligning UAE policies with OECD tools, good practices and standards in four key policy areas
Megatrends such as the digital and green transitions represent both challenges and opportunities for the UAE to further diversify, attract talent and adopt a more inclusive and sustainable growth model focusing on decarbonisation and a competitive market economy. This poject, from 2022-2023, focused on aligning UAE policies with OECD tools, good practices and standards in four policy areas: SMEs and entrepreneurship policy, investment policy, corporate governance and competition policy.
The Project was implemented through policy dialogues and workshops, in which OECD experts and policy makers from member countries shared with UAE officials their accumulated experience in the covered policy areas. Policy issues papers were drafted for each policy area to assess UAE regulations and institutional settings against OECD standards, as well as to identify priority reforms.
PROGRAMME ACHIEVEMENTS
areas for reform and potential for alignment with OECD standards
findings and recommendations to inform policy reforms
Identified key recommendations for actionable reforms
SME and Entrepreneurship
The project highlighted progress in improving SME access to finance and export support in the UAE, including reduced banking barriers and a new credit guarantee scheme. Innovation capacity among SMEs is underutilised despite strong institutional backing, pointing to a need for targeted support and stronger links to research. The lack of systematic impact evaluations also limits policy effectiveness, underscoring the importance of better data sharing and clearer programme objectives.
Investment
The project identified four key areas for future development: conducting an FDI Statistics Review to strengthen the UAE's ability to compile official FDI data at federal and subnational levels, integrating the UAE into the OECD FDI Regulatory Restrictiveness Index for benchmarking and reform assessment, enhancing the national and subnational investment climate by aligning with OECD best practices, and assessing the impacts of FDI on sustainable development, particularly in productivity, innovation, job quality, decarbonisation, and gender equality, with the aim of informing policies to maximize the benefits of FDI for sustainable growth.
Corporate Governance
The project emphasized aligning the UAE’s corporate governance with international standards to boost competitiveness, market confidence, and growth. It recommended diversifying ownership, attracting institutional investors, and refining corporate governance practices, including clearer implementation and reporting. The UAE’s strong sustainability framework needs continuous monitoring to align with global standards, ensuring resilience and better risk management. Strengthening these areas will foster innovation, improve liquidity, and enhance market resilience in the long term.
Alignment
Competition Policy
The OECD’s review of competition policy highlighted critical gaps in enforcement, limited institutional capacity, and the need for a more robust legal framework. It recommended establishing an independent competition authority with adequate resources and clearer enforcement powers, while reducing broad exemptions that undermine fair competition. The report also called for modernising merger control, enhancing legal transparency, and improving judicial processes. Strengthening competition advocacy, stakeholder engagement, and international cooperation is essential to build a pro-competition culture and align the UAE’s practices with global standards.
