New report calls for better urban investment and land-use planning, stronger links to markets, and closer public-private collaboration in urban governance
WASHINGTON, June 30, 2026 - Cities across the Middle East and North Africa can play a much stronger role in creating more jobs and higher quality jobs if urban policies are better aligned with infrastructure and housing needs for private sector and labor market growth, according to a new World Bank report: Cities that Work: Realizing the Jobs Potential of MENA's Cities.
The report comes at a critical time for the region. By 2050, nearly 300 million young people in MENA will be seeking employment, while youth unemployment remains among the highest in the world. With more than 60 percent of the region's population living in cities, the report argues that urban areas are central to tackling the jobs challenge and supporting long-term growth.
Drawing on new analysis of 615 MENA cities benchmarked against more than 8,000 cities worldwide, the report finds that MENA cities are relatively productive by global standards but still have significant room to improve. The median MENA city operates 17.6 percent below the productivity level of the world's best-performing cities of similar size.
"Cities are where MENA's jobs challenge will be won or lost," said Almud Weitz, Regional Practice Director for Infrastructure, World Bank. "Urban policy is not only about buildings, roads, or land use. It is also about creating the conditions for firms to grow and innovate, and for women and young people to access jobs. When cities are well planned, well connected, and supported by reliable and affordable services, they can expand opportunities for workers and become engines of growth and resilience."
The report points to several constraints holding cities in the region back. Many urban firms struggle to access land, electricity, water, and transport. Women's participation in the labor market remains limited and well below global average, with transport, childcare, and safety affecting access to jobs. Housing constraints also affect labor mobility, particularly for youth and lower-skilled workers seeking access to job opportunities. The region also has low shares of large private firms and foreign-owned firms, despite evidence that these firms can support job creation and productivity growth.
The report highlights four areas for improvement to help cities turn urban growth into job creation: productive density, which means ensuring that people and firms are supported by the infrastructure and services they need to work efficiently; market connectivity, linking cities to domestic and international markets; attractiveness to investment and talent, by improving the business environment and quality of life; and public-private coalitions, bringing firms, investors, and public authorities together around practical planning and reforms.
The report also stresses that there is no one-size-fits-all approach. Large and primary cities should focus on managing congestion, regenerating underutilized urban land, improving livability, attracting diversified investment and innovation, and competing in global markets. Small and medium cities need more realistic and targeted strategies, including better basic services, stronger links to nearby markets, digital connectivity, and support for local economic strengths such as tourism, agro-processing, logistics, or light manufacturing.
City transformation takes time, but the payoff can be significant. With the right mix of urban planning, reliable services, market connectivity, and private sector engagement, MENA cities can turn today's jobs challenge into a pathway for more inclusive growth and wider economic opportunity.
