Middle East & North Africa

Ownership of reforms by citizens is often presented as important for success. This paper explores media engagement and support for economic reforms in the Gulf Cooperation Council (GCC) countries using text analysis techniques on publicly available sources. Results show that while reform efforts have intensified in recent years in the GCC, these efforts tend to focus on stronger rather than weaker policy areas, potentially limiting the growth-enhancing effect of reforms. Social media analysis using Twitter shows that the population’s support for reforms has been declining. The analysis of traditional
news media points to more engagement by international than by local media. However, sentiment from international media is less positive about economic reforms in the GCC. Sentiment in international media and social media matters, as evidenced by its positive and strong correlation with FDI inflows into the GCC.

The Middle East Initiative is pleased to announce that Dr. Omar Razzaz, former Prime Minister of the Hashemite Kingdom of Jordan, will serve as a non-resident Emirates Leadership Initiative Senior Fellow during the Spring and Fall 2022 semesters at Harvard Kennedy School’s Middle East Initiative (MEI).

The Covid-19 pandemic has drastically disrupted people’s lives, livelihoods, and economic conditions around the world. The global shock has resulted in a tourism standstill (Djankov 2020), significant capital flight (Djankov and Panizza 2020), and a slowdown in remittances (Nonvide 2020), resulting in an urgent balance-of-payments need. Egypt responded to the crisis with a comprehensive package aimed at tackling the health emergency and supporting economic activity. The Ministry of Finance acted swiftly to allocate resources to the health sector, provide targeted support to the most severely impacted sectors, and expand social safety net programmes to protect the most vulnerable. Similarly, the Central Bank of Egypt adopted a broad set of measures, including lowering the policy rate and postponing repayments of existing credit facilities. The next section highlights the experience of firms in Egypt following these policies.

Kuwait has a long history of generosity and has been globally recognized for its humanitarian aid and philanthropic giving. The ruling family, the House of Al-Sabah, and merchant families have been prominent philanthropic leaders in Kuwait. More recently, the growth in personal wealth has allowed more individuals to engage in the charitable sector. Philanthropy in the country is becoming more organized, institutionalized, and visible. In turn, the government is increasingly engaged in regulating the sector.