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The long-term economic recovery from COVID-19 offers the Middle East a unique opportunity to achieve sustainable development and the Paris agreement. Countless approaches have been proposed, but what are the best policy options for governments in region aspiring for a green long-term recovery?.

Throughout 2020, governments in the Middle East were at various stages of post-pandemic planning. As this report shows, short-term rescue measures in the region supported business-as-usual trajectories, and most countries have not actively promoted green, resilient or just longer-term recoveries which are identified as the three main objectives for better recoveries. Yet, as it also demonstrates, such policies will be imperative for achieving sustainable development in the region and for ensuring welfare for its people in the future.

This report covers the priorities for recovering better in the Middle East, and particularly its largest Arab oil producing economies, namely the Gulf Cooperation Council (GCC) member countries, Egypt and Iraq, which together account for 55% of the region’s GDP and 45% of its population. It also examines the region’s economic response to COVID-19 over a one-year period, from March 2020 through March 2021, and identifies emerging green, resilient and just recovery responses and related gaps. The report draws as well on past experience and present knowledge and policy agendas focused on green, resilient and just recoveries globally, and synthesises relevant ‘better’ practices, with an eye on the region’s sustainable development needs. Lastly, it presents policy recommendations for governments in the Middle East, building on the findings of the previous sections and inputs from consultations with regional sustainable development stakeholders. The suggested policies focus on the entire economy, and the energy sector (both the industry itself, as well as energy supply and end uses) and aviation and tourism. 

This report is focused on policies for a better recovery, whereas another complementary study titled “Financing a Green Recovery in the Middle East” identifies where related investments should be directed. Both studies depart from the conviction that research grounded in the region’s sustainable development needs and priorities is needed to help promote and inform related discussions.