Promoting diversified and competitive economies

Few Arab States have competitive private sectors, particularly for tradables, and the economies that are based on oil and gas are subject to highly volatile prices. The productivity of labour, much of it informal, is relatively low. The capacity of government institutions is generally weak. This persistent equilibrium of low growth–low productivity–low employment–low institutional capacity emerges from a social contract based on a deep-seated rentier state that favours the status quo and rejects truly transformative economic reforms. The region’s well-known economic fragilities are not destiny, however. They can be corrected with a strong human development approach to tackle the region’s long-term structural challenges.

Sustainable Development Goals:

Good Health and Well-Being

Decent Work and Economic Growth

Sustainable Cities and Communities