By the Numbers: Latest MENA Private Sector Indicators
In numbers…the latest private sector indicators in the Middle East and North Africa
We are all witnessing these economic challenges, climate crises, and geopolitical turmoil, all of which are challenges that force us to find sustainable paths, especially in the private sector, which bears the greatest burden of efforts to enhance economic growth rates, and because of its extremely important role in providing decent work opportunities.
Therefore, we find that the Middle East and North Africa region is at a very difficult crossroads. As climate challenges intensify, the role of the private sector has become pivotal. Therefore,Earth Guardswill address in this article the current situation of the private sector in this region, exploring aspects of its development; In order to promote sustainable economic growth…so read on.
Where has the private sector reached?
To determine the true performance of the private sector in the Middle East and North Africa,Earth Guardswill rely on the latest global data, represented by a new report issued byThe World Bank in April 2025, which reveals the picture of the performance of this vital sector in an important geographical location, where it is suffering from a decline. Noticeable performance indicators, wide productivity gaps, and weak investment and training; Affected by political conflicts and disputes.
These challenges were reflected in economic rates that do not meet the aspirations of the Middle East and North Africa region. In 2024, the GDP growth rate in this region reached 1.9%, which is a low rate and almost similar to the rate in 2023.
DespiteFrom the above, the report expects limited growth in economic performance rates in the Middle East and North Africa. The data say that it is likely that the gross domestic product growth in this region will accelerate to reach 3.7% in 2026, but this growth – according to the World Bank report – will be tinged with uncertainty in the oil-producing countries due to global policies.
Productivity gap and limited innovation
One of the most prominent challenges facing the private sector in the Middle East and North Africa is weak productivity. According to the report,companies recorded a decline in sales growth of 8% on average, which is much worse than the rates recorded in:
- Low-income countries: 0.4%.
- Medium countriesIncome: 0.4%.
- High-income countries: 2.4%.
The percentage of companies that invest in physical capital is only 21.7%, which is much lower than global rates, and this is when 14.5% of companies provide formal training to employees, which is a weak number compared to the economies of middle-income countries.
Gender gap
With regard to women’s participation in the labor market, the Middle East and North Africa region recorded the lowest global rate of women’s participation in the labor force within the private sector, at a rate of only 18%, compared to the global rate of 49%.
Despite the efforts of some countries – such as Saudi Arabia – the percentage of companies in which women hold leadership positions is still low. When you reachOnly 2.95%, compared to 18.7% in high-income economies. Accordingly, the report indicates that closing the gender gap in employment within the private sector could raise per capita income by about 50% in the Middle East and North Africa region.
How can the private sector drive growth?
Redefining the role of the state
Governments must reduce their interference in the market, enhance competition, and achieve equal opportunities between private companies and public sector companies; According to the report, government companies in some countries constitute a barrier to economic dynamism and attract talent away from the private sector.
Innovation through management
The report shows that improving practicesManagement could close about a third of the productivity gap between the economies of the Middle East and North Africa region and the United States, for example. This can be achieved via:
- Greater investment in employee training.
- Developing governance structures.
- Adopting digitization and innovation in economic processes.
Women Empowerment
The presence of women in leadership positions enhances the employment of other women and increases productive diversity. So it must:
- Reform discriminatory laws against women.
- Supporting women’s entrepreneurship.
- Facilitating women’s access to finance.
Building resilience to shocks
The Middle East and North Africa region – as well as developing countries in the Global South – are among the regions of the world most affected by climate disasters, and hence the data indicate that private sector companies can invest in human resource development, and that they are able to better withstand global climate crises.
From weakness to breakthrough
What the numbers revealed in the World Bank report confirms that the Middle East and North Africa region stands today at a historic crossroads, where private sector development is no longer a secondary option, but rather a necessity to confront the specter of unemployment, rising poverty, and the devastating repercussions of conflicts.
Therefore, governments – as we mentioned before – have no choice but to do soIt must redefine its role in front of the private sector, and must make room for fair competition, encourage innovation, and invest in human capital, especially women. Because benefiting from the energy of all members of societies is necessary for resilience and prosperity.
In conclusion, the only answer to the questions of current challenges lies in unleashing the potential of the private sector, which is whatEarth Guards tried to focus on in this article; In an effort to reconsider its role to promote economic growth in a fair and comprehensive manner whenever we face challenges with an innovative mentality.
