World Bank Report Highlights Improved Economic Prospects for the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP) Region
The latest economic report from the World Bank on the MENAAP region indicates an improvement in economic prospects, with expected growth of 2.8% in 2025 and 3.3% in 2026. However, global uncertainty, trade policy developments, and the persistence of conflicts and population displacement continue to weigh on economic risks.
The countries of the Gulf Cooperation Council (GCC) are expected to benefit from the gradual lifting of voluntary oil production cuts and the dynamism of their non-oil sectors. Oil-importing countries are also expected to see an improvement in economic activity, supported by private consumption and investment, as well as a rebound in agriculture and tourism. In contrast, developing oil-exporting countries may experience a marked slowdown due to conflicts and decreased oil production.
The report, titled "Employment and Women: Untapped Talent, Unrealized Growth," also notes that countries in the region could improve the living standards of more people by fully mobilizing their workforce potential. Currently, women's talents and skills remain largely underutilized. Data reveals that only one in five women is part of the labor force - the lowest rate in the world - despite significant progress in education and skills.
"I call for bold actions, not partial measures," said Ousmane Dione, World Bank Vice President for the Middle East, North Africa, Afghanistan, and Pakistan region. "To unlock the full potential of women in the region, it is necessary to remove all obstacles to their inclusion through comprehensive measures. A dynamic private sector that creates jobs and drives new ambitions is the key to real progress."
Based on an analysis that takes into account household choices, social norms, legal frameworks, and the role of businesses, the report assesses the potential gains that regional economies could achieve by removing obstacles that hinder women's full participation in the workforce. No other region has as much to gain from removing these obstacles.
"Increasing women's labor force participation can lead to immense economic gains," said Roberta Gatti, Chief Economist for the Middle East, North Africa, Afghanistan, and Pakistan region. "Removing obstacles to women's employment could increase GDP per capita by 20 to 30% in Egypt, Jordan, and Pakistan."
