WEF – Closing the Climate Action Gap, 2023

The World Economic Forum (WEF) has identified the Middle East and North Africa (MENA) as a region that is particularly vulnerable to the effects of climate change. Rising temperatures, droughts, and water scarcity have led to extreme weather events such as heatwaves, sandstorms, and floods, which could worsen socioeconomic disparities and migrant crises. However, MENA also has the potential to lead in addressing these challenges as a major global energy supplier. To capitalize on this opportunity, the WEF, along with Bain & Company, has formed the Leaders for a Sustainable Middle East and North Africa (LSM) coalition, consisting of policy-makers, business leaders, banks, and industry experts from the region. The LSM coalition recognizes the unique opportunity presented by Egypt hosting COP27 in 2022 and the United Arab Emirates hosting COP28 in 2023. The coalition aims to shape a regional sustainability agenda and promote public-private cooperation for climate action in MENA. This report specifically focuses on nine major MENA economies, including Saudi Arabia, UAE, Egypt, Qatar, Kuwait, Morocco, Oman, Tunisia, and Bahrain, due to data availability challenges. The report assesses the current state of corporate climate action in the region and provides strategies to turn risks into competitive advantages across sectors. While MENA countries have shown a growing commitment to climate action through net-zero targets, the business community's action lags behind global peers, and consumers underestimate the region's vulnerabilities. Nevertheless, MENA has the potential to leapfrog others on the sustainability journey by leveraging its conventional and renewable energy resources. Successfully transitioning to a sustainable future requires bold measures from policy-makers and companies, increased awareness, and more multistakeholder partnerships. Regional collaboration is essential for fully realizing the opportunities presented by decarbonization and the energy transition. The time for climate ambition is now, and collective action can ensure a prosperous and equitable future for the MENA region and the planet.