As the MENA region faces intertwined challenges of economic instability, population growth, and climate vulnerability, the World Bank continues to support sustainable development through structural reforms, private-sector investment, and social protection.
In this Ahram Online interview, Dione shares insight into the region’s current economic outlook, challenges and opportunities, with a focus on Egypt as a key partner.
Ahram Online (AO): How would you assess the current economic landscape in the MENA region, and what are the most pressing challenges facing the region in the coming years?
Ousman Dione: We are cautiously optimistic. The region is showing signs of a firmer recovery, particularly in job-creating sectors such as agriculture and tourism. Our forecast sees growth at 2.8 percent in 2025 and 3.3 percent in 2026.
However, the biggest challenge is job creation.
The region’s working-age population is growing fast, but economic growth has not been labour-intensive. Women’s participation in the workforce is also the lowest globally, despite advances in education.
To drive recovery, the World Bank Group is focusing on three pillars: investing in physical and human capital; improving the business environment through policy and regulatory reforms; and mobilizing private investment at scale.
AO: How have recent geopolitical crises—such as those in Gaza and Yemen—impacted development agendas across MENA, and what role is the World Bank playing in supporting conflict-affected countries?
Dione: Conflict has deeply impacted development, but we remain engaged in fragile settings to help build long-term resilience.
In Gaza, we’ve provided emergency support for food, health and water through UN partners, reaching over one million people. In the West Bank, we’re helping the Palestinian Authority maintain critical services during a fiscal crisis.
In Yemen, our long-term programmes support health, education, clean water and climate-resilient agriculture.
In Syria, we’ve approved $146 million in grants to restore electricity and are expanding work in health, education and social protection.
AO: How would you describe the current partnership between the World Bank and Egypt, and what are the key projects currently being supported?
Dione: Our partnership is shaped by the Country Partnership Framework (FY2023–2027) and aligns with Egypt Vision 2030.
The focus is on promoting private sector–led growth, investing in digital transformation, social protection and the green economy, and supporting key sectors such as renewable energy, water and sanitation, education, and Micro, Small and Medium Enterprises (MSMEs).
The new national economic narrative emphasises empowering the private sector, boosting investment and creating jobs, priorities we fully support.
AO: How does the World Bank evaluate Egypt’s recent economic reforms and their impact on development?
Dione: Egypt has made strong progress since March 2024, unifying exchange rates, improving fiscal discipline and rationalising subsidies. These reforms have eased currency pressures, moderated inflation and encouraged investment.
However, growth is not yet sufficient to meet youth employment needs. Structural reforms must continue, particularly in reducing state dominance in the economy and enhancing private sector competitiveness.
We project 4.5 percent average GDP growth between FY25 and FY27, driven by reforms in taxation, digital registration and trade facilitation.
AO: In what ways is the World Bank promoting greater private sector participation in development initiatives in Egypt and across the MENA region?
Dione: Egypt needs to generate more jobs, especially from the private sector.
Key barriers include regulatory complexity, limited access to finance and industrial land shortages.
We’re addressing these through programmes such as the $200 million Catalysing Entrepreneurship for Job Creation Project, which has created or maintained more than 420,000 jobs, half of them for women and youth.
The International Finance Corporation (IFC), our private sector arm, has invested $10bn in Egypt and supports SMEs, green finance, fintech and more.
Regionally, we are scaling support for entrepreneurship, SME development, financial market reforms and vocational training aligned with labour market needs.
AO: What measures can be taken to ensure that social support reaches the most vulnerable populations efficiently and transparently?
Dione: Social protection is a core part of our mission.
Our $7 billion regional portfolio supports 20 social protection projects, aiming to deliver cash assistance, support self-reliance through skills and employment, extend social insurance to informal workers and improve delivery systems for better targeting and shock responsiveness.
In Egypt, the Takaful and Karama programme supports 4.6 million households, with 74 percent of recipients being women. We are now also helping families transition to economic empowerment, including through access to microcredit.
AO: What are the World Bank’s priorities in supporting the green transition in MENA, and how can Egypt benefit from climate financing mechanisms?
Dione: We’re actively helping MENA countries address climate change through water security and climate-smart agriculture, renewable energy expansion, ecosystem restoration, waste management and low-carbon transport.
In Egypt, the green transition could create 67,000 net jobs per year by 2030. Our Generating Resilience, Opportunities and Welfare for a Thriving Egypt programme supports low-carbon development and infrastructure efficiency.
The Greater Cairo Air Pollution Project targets emission reductions, solid waste management, and clean transportation.
Egypt is also using climate finance for industrial decarbonisation, water efficiency and land restoration. With our help, it became one of the first countries to issue green bonds, attracting both public and private climate investments.
Short link: