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Private sector key to development in Middle East, North Africa

Arab governments need to give room and encourage private sector growth if they’re serious about developing their economies.
Japanese businessmen look closely at stock prices flashing outside a brokerage in Tokyo September 26, 2005. The Nikkei average rose 1.77 percent or 233.27 points to 13,392.63, its highest close since June 2001 after investors were encouraged by a survey showing growing confidence among big manufacturers and damage from Hurricane Rita in the United States was less-than-expected. REUTERS/Yuriko Nakao PP05090317 - RTRPE4R

There is no other region in the world where supporting the private sector is as important as it is in the Middle East and North Africa (MENA). Three years on from the Arab Spring, many countries in the region continue to struggle with their political and economic fallout: prolonged political transitions, slow growth, high fiscal and current account deficits, staggering unemployment and tepid private investment (both domestic and foreign). The Arab Spring has also brought renewed attention to already existing problems, such as:

  • High unemployment levels, especially among the youth.
  • Insufficient accountability and transparency.
  • An unwieldy public sector dominated by state-owned enterprises.
  • A low level of private-sector participation in the economy.

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