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.

The private sector, with its financial clout and knack for innovation, has the potential to help reverse these trends. But first, governments need to give it some room to operate. The private sector in MENA needs to be “crowded in” and not crowded out, as has been the case for decades.

Historically, the public sector has been the main driver of economic growth throughout MENA. However, this cannot continue as many governments are facing budget crunches and have their hands full with political and security issues.

With governments across MENA facing fiscal constraints, the private sector should see this as an opportunity to play a key role in developing vital infrastructure projects.