Prioritizing Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses

The report argues that MENA companies face increasing pressure from global regulators and investors to adopt transparent sustainability practices. It proposes a three-stage 'materiality assessment' framework tailored to key regional sectors—including oil and gas, retail, and financial institutions—to help companies move from 'quick wins' to 'full transparency'. The document also categorizes regional governments into four archetypes based on their policy ambition and enabling environments, identifying Saudi Arabia and the UAE as 'pioneering leaders'.

• MENA companies are facing significant pressure to improve sustainability transparency due to global trends, such as the EU's Carbon Border Adjustment Mechanism (CBAM) starting in 2026, which will impact key exports like aluminium, fertilizers, and cement from Egypt, Algeria, UAE, and Morocco.
• There is a significant gap in regional regulatory clarity; 73% of C-suite executives surveyed in 2024 identified the lack of clear sustainability-related regulations as a key barrier, an increase from 64% in 2023.
• Financial constraints hinder the transition, with nearly two-thirds of companies reporting difficulties in securing adequate funding for low-carbon transition initiatives, despite over $29 billion being issued in sustainable bonds in MENA in 2023.
• Small and medium enterprises (SMEs) in the region struggle with sustainability due to a lack of awareness, limited capabilities, and insufficient finance, leading 60% of surveyed executives to agree on the importance of supporting them in their decarbonization journeys.
• The report recommends a three-stage materiality assessment process for companies: 'Mastering the quick wins' (basic GHG and energy reporting), 'Bridging the gaps' (air emissions and waste management), and 'Embracing full transparency' (biodiversity, R&D, and advanced water metrics).
• MENA countries are classified into four policy archetypes: 'Pioneering leaders' (Saudi Arabia and UAE), 'Ambitious developers', 'Progressive builders', and 'Emerging starters'.
• GCC countries generally exhibit higher per capita CO2 emissions and higher carbon intensity per unit of GDP compared to non-GCC countries like Egypt, Morocco, and Jordan, necessitating more robust regulatory landscapes.
• Specific regional initiatives demonstrate scalable success, such as Saudi Arabia's 'Sustainability Champions' programme launched in April 2024 and Egypt's National Initiative for Smart Green Projects (NISGP), which has seen over 12,000 project submissions.

APA

World Economic Forum (2024). Prioritizing Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses. https://www3.weforum.org/docs/WEF_Prioritizing_Sustainability_in_MENA_2024.pdf

Chicago

World Economic Forum. Prioritizing Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses. 2024. https://www3.weforum.org/docs/WEF_Prioritizing_Sustainability_in_MENA_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Prioritizing Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses |date=November 2024 |url=https://www3.weforum.org/docs/WEF_Prioritizing_Sustainability_in_MENA_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024prioritizing, author = {{World Economic Forum}}, title = {{Prioritizing Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses}}, institution = {World Economic Forum}, year = {2024}, month = nov, url = {https://www3.weforum.org/docs/WEF_Prioritizing_Sustainability_in_MENA_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }