How to close sustainable development gaps across the Middle East and North Africa

Almost a decade since the adoption of the UN's 2030 Agenda for Sustainable Development – a global plan to help people, planet and prosperity – the world is seriously behind schedule. Halfway to the 2030 deadline, only 17% of the Sustainable Development Goals (SDGs) are on track to be met. Progress is weak on 50% of the goals and, even worse, more than 30% of targets are seeing reversals.

In the Middle East and North Africa (MENA), a 2023 regional assessment scored its SDG progress at an average of 59.8 out of 100. Only seven Arab countries scored above 65, but even more alarmingly, 14 Arab nations have not yet achieved a single SDG target. This lack of progress will add 60 years to the 2030 target for meeting the SDGs, according to the UN Economic and Social Commission for Western Asia.

Here are four ways MENA countries could make up for lost time and get back on track to meet the SDGs:

Despite economic development in MENA, poverty and inequality increased from 12.3% in 2010 to 18.1% in 2023, some of the highest rates globally. Conflict continues to hamper the region’s economic stability through trade disruptions and uncertainty. Its growth forecast for 2024 has been downgraded to 2.8%, which is on a par with pre-pandemic lows. Middle-income countries in the region also face financial pressures from soaring debt, high interest rates and inflationary pressures.

More equitable growth could be achieved through an acceleration of existing reforms that focus on diversification and job creation. Saudi Arabia’s non-oil sector growth, for example, now accounts for 50% of GDP. It has added more than a million jobs to the economy, while focusing on upskilling and wellbeing.

Structural reforms to reduce debt burdens and channel investment into growing sectors such as advanced manufacturing will also accelerate inclusive growth. In Oman, for instance, each job in manufacturing is estimated to be helping create two to three additional jobs in other sectors.

Governments in the region should also focus on overcoming one of the lowest rates of female labor participation rates worldwide – (19.9%). This employment gender gap costs the region up to $575 billion per year, according to the Organisation for Economic Co-operation and Development (OECD).

Security challenges in the region are also a critical hurdle to sustainable growth. A 66% drop in ships passing through the Suez Canal due to geopolitical tensions cost Egypt more than $2 billion in 2023-2024. Governments must collaborate to ensure sustainable peace by investing in institutions and stability.

Similarly, strengthening inter-regional trade between resource-rich Gulf Cooperation Council nations and North Africa could also drive progress on MENA SDGs and unlock $1 trillion in value over the coming years. This intra-regional trade stands at only 17.8% of MENA’s total trading activity. In comparison, intra-regional trade comprises 62% of total EU trading activity.

Investing in human capital and youth will be essential for sustainable development in MENA. Youth unemployment in the region is among the highest globally. In 2023, one in four young people were unemployed – double the global average. A skills deficit of 70% and the need to create 300 million jobs by 2050 only heightens the risk of further delays.

On the Governments must significantly ramp up investment in education, especially in digital skills. Dubai’s partnerships with Amazon, Google and Microsoft to train 100,000 computer programmers is one positive example. Morocco has also collaborated with the World Bank to establish a €570 million polytechnic university, helping advance labour competitiveness in North Africa.

Research and development investments will spur innovation and link growth to development opportunities. Encouragingly, 34% of MENA youth are familiar with the SDGs, higher than the global average of 23%. This further underlines the kinds of opportunities that could be reaped with more human capital and youth-oriented investments in the MENA region.

The MENA region is among the hottest in the world and temperatures are projected to rise by 4°C in the next two decades, potentially wiping up to 21% from its GDP by 2050. The region currently contributes 8% of global emissions, with emissions growing by 21% over the last decade alone. This is second only to North America and six times higher than South Asia. The consequences are dire, including frequent and intense extreme weather events like heatwaves, droughts and floods, not to mention growing concerns about water supply.

But positive developments are underway in MENA. It is expected to add 62GW of renewable energy capacity by 2028, according to the International Energy Agency. Saudi Arabia plans to invest $266 billion in clean energy by 2030, while Egypt’s Benban Solar Park is among the world’s largest and aims to raise Egypt’s clean energy share to 42% of its electricity mix.

Gaps remain, however: only 12% of businesses in the region have committed to net-zero targets, and just 6% have clear roadmaps for this. The UNFCCC estimates that MENA will need $436–478 billion by 2030 to galvanize its climate crisis plans.

This investment should include technologies for carbon removal and should also mobilize more capital for clean energy infrastructure. Private sector involvement will be critical in enhancing transparency, incentivizing climate-positive action and addressing financing gaps.

Technology has perhaps the greatest potential to accelerate sustainable development in MENA. Artificial intelligence alone could generate up to $320 billion by 2030 in the region through changes including increased productivity and consumer benefits.

Technology could help address serious challenges like food and water security and health, which are key to realising large swathes of the SDGs. For example, MENA accounts for 12.2% of the world’s undernourished population despite hosting just 6% of the global population.

In Jordan, the ARDI initiative is using smart farming solutions like rainwater harvesting and hydroponic systems to strengthen food security and create jobs. Similarly, Huma in Saudi Arabia, is using AI to deliver healthcare services at home for 34 million people. Its focus is on cardiovascular diseases, which was linked to 37% of deaths in the region in 2015.

MENA is home to many of the world’s largest sovereign wealth funds, which are underpinning regional transformations. And so it has the potential to be a global leader in tech-driven sustainable solutions. Continued investment in innovation and a focus on sharing knowledge and resources across the region will therefore be crucial for accelerating progress toward the SDGs.

Swift and coordinated action will be essential to closing the gaps in sustainable development across the MENA region. Many of its countries have already started to implement crucial initiatives. By prioritizing more investments in equitable development, youth empowerment, clean energy and technology, MENA can grasp the opportunity to create lasting change before the 2030 SDG deadline.