Since the COVID-19 crisis, societies have come to realise that recovery cannot mean simply returning to the way life was before the pandemic, but rather that we must “build back better”. Recovery plans building on this notion provide an opportunity to design and implement much needed reforms for sustainable economic growth and more inclusive societies.

Following the launch of the first edition of the Progress Report on Regional Integration in the UfM Region last year, I am pleased to present the report: Navigating beyond COVID-19 – Recovery in the MENA Region. This report, developed by the OECD with the support of the German Development Cooperation, focuses on the COVID-19 post-pandemic recovery in the Middle-East and North Africa (MENA), which is one of the regions most adversely affected by the social and economic impacts of this health crisis.

Navigating beyond COVID-19, Recovery in the MENA Region reflects on the impacts of the COVID-19 crisis on MENA countries and the potential changes it may bring to their reform agendas. It addresses not only the ongoing effects of the crisis, but also examines long-term consequences and identifies emerging new trends.

This report was prepared before Russia’s large scale aggression against the Ukraine. Nevertheless, it is important to add a preliminary analysis on the impact the war will have in the MENA region MENA region or MENA countries refer to the group of countries that are members of the Union for the Mediterranean. These countries are: Algeria, Egypt, Jordan, Lebanon, Mauritania, Morocco, Palestinian Authority and Tunisia. Where the term “broad MENA region” is used, it refers to the group of MENA countries that include UfM and non-UfM members..

This chapter discusses the impacts of COVID-19 on employment and the business sector, in particular small and medium-sized enterprises, in the MENA region. It reflects on the vulnerabilities caused by the significant share of informality in the economies of the region and highlights the effects of the pandemic on tourism and trade. It also examines policy approaches to address the challenges of a sustainable and inclusive recovery.

The COVID-19 crisis highlighted the central role of R&D in providing technical and scientific solutions to mitigate the negative effects of global shocks such as a pandemic. This chapter draws attention to the strategic importance of co-operation in research and innovation in the MENA region to help address common challenges, such as promoting the diversification of economic activities and fighting the effects of climate change.

The COVID-19 pandemic illustrated the dramatic consequences of having weak health and social protection systems as well as fragile supply chains of fundamental goods, notably food, when severe crises hit. This chapter highlights how existing weaknesses in MENA countries can increase the risk for crisis-induced poverty for many vulnerable groups, in particular informal workers, women and youth. It discusses policy solutions – including the promotion of a digital eco-system – to implement a growth model where decent jobs and career opportunities for all become the norm in MENA countries’ labour markets.

The COVID-19 pandemic exacerbated water-stress and food insecurity in the MENA region, the world’s most water scarce region. This chapter analyses trends in infrastructure investments in the water and waste sectors in MENA countries, as well as employment opportunities in these sectors, driven by urbanisation, tourism development, irrigated agriculture and industrialisation. It highlights that the economic recovery offers an opportunity to integrate environmental fiscal reforms into policy reform agendas to maximise integration of social and environmental benefits.

In the MENA region, years of very rapid urbanisation and countries’ inability to maintain a sufficient provision of adequate infrastructure and services exacerbated vulnerabilities during the COVID-19 pandemic. This chapter considers sustainable models for urban space and solutions to current vulnerabilities. It stresses the need to improve the governance of public transport in MENA countries, by shifting to a sustainable transport infrastructure, and to provide adequate finance to the public transport sector so that it remains affordable for users. The policy recommendations point to action to develop green and sustainable cities, aligning policies on housing, land-use management and transport.

This chapter examines national renewable energy targets of MENA economies in light of the COVID-19 crisis and their overall impact on the energy sector. It argues that the postponement of renewable energy projects, due to the prioritisation of immediate economic recovery, is counterproductive given the severe effects of climate change and the potential of an ambitious renewable energy strategy for job creation in the MENA region.