Featured Article From Global Newsletter - August-September 2025
By Bachir Tamer President of MENA Region of CIAS & Driss Guerraoui, Member of the Executive Committee of CIAS
Social protection transcends the mere notion of a safety net; it serves as a pivotal instrument for forging a more equitable society, mitigating disparities, and fostering sustainable economic development. In the Middle East and North Africa (MENA) region, it manifests in diverse forms, encompassing social security programs, informal assistance, and governmental initiatives such as cash transfers, health insurance, pensions, family allowances, and compensations for occupational illnesses and unemployment. Yet, amidst economic crises, conflicts, and rapid demographic transitions, these systems frequently struggle to meet the population’s needs. This article offers a nuanced and humane perspective on the realities of social protection in the MENA region, examines the challenges impeding its progress, and envisions pathways toward a more just future, drawing upon recent data and concrete examples.
I - The Realities of Social Protection: A Fragmented Mosaic
1 - Diversity Shaped by Contexts
The MENA region is far from monolithic; each nation has crafted its social protection system according to its resources, culture, and priorities. In Gulf monarchies, such as Saudi Arabia and the United Arab Emirates, oil revenues enable generous subsidies—for fuel, electricity, and water—and programs like Saudi Arabia’s Citizen’s Account, which provides financial aid to households to offset rising energy costs. These countries also offer substantial pensions to public sector employees, though such benefits are typically reserved for citizens. Migrant workers, who constitute up to 80% of the workforce in some Gulf states, are largely excluded, often lacking access to health insurance or basic protections.
In contrast, countries like Morocco, Tunisia, and Egypt rely on more traditional social security frameworks, primarily covering formal sector workers. In Egypt, for instance, only 30% of the workforce benefits from health insurance, according to the International Labour Organization (ILO, 2021). In Morocco, the National Social Security Fund (CNSS) provides family allowances, yet these reach only about 20% of eligible families in certain regions. Compensation for occupational illnesses exists in theory but is often underfunded, particularly in high-risk sectors like construction, where accidents are common but rarely officially recognized.
In conflict-afflicted countries such as Syria and Yemen, social protection systems have collapsed. Prior to the war, 40% of Syrians had access to public health insurance; today, this figure has plummeted to below 10% (World Bank, 2023). In such contexts, international humanitarian aid— cash transfers or food rations—often fills the void. In Yemen, approximately 5 million people depend on these programs, while in Jordan, the National Aid Fund supports 200,000 households—a commendable effort, yet insufficient given the scale of needs, particularly for refugees.
2 - A Coverage Still Severely Limited
Despite these initiatives, social protection remains a privilege for many in the region. According to the World Bank (2023), 60% of the MENA population lacks access to formal social protection, whether health insurance, pensions, or unemployment benefits. Informal workers, who account for up to 70% of the labor force in countries like Egypt and Morocco, are largely overlooked. Women, youth, and rural populations are particularly vulnerable. In Tunisia, for example, only 15% of women in the informal sector benefit from health insurance, compared to 50% of men in the formal sector (ILO, 2022).
Persons with disabilities fare no better. In Morocco, the Allowance for the Support of Persons with Disabilities reaches approximately 100,000 beneficiaries, less than 10% of those eligible (Ministry of Solidarity, 2023). Unemployment benefits are nearly nonexistent, except in limited cases, such as in Tunisia, where fewer than 5% of the unemployed receive them (ILO, 2021). In Egypt, the Takaful and Karama program aids 3.6 million households—a significant effort, but a mere drop in the bucket for a country of over 100 million people.
3 - The Pivotal Role of Social Transfers
Subsidies for essential goods, such as bread and fuel, remain a cornerstone of social protection in several countries. In Egypt, 70 million people benefit from the ration card system, but these programs are costly—1.5% of GDP in 2022 (World Bank, 2023)—and often disproportionately benefit the affluent. In Jordan, prior to the 2018 reforms, 80% of energy subsidies went to the wealthiest 20%. Countries like Tunisia, through the Amen Social program supporting 900,000 households, are shifting toward more targeted cash transfers, though budgetary constraints hinder their expansion.
II- Challenges: Structural and Conjunctural Obstacles
1 - Heavy Economic Constraints
In Gulf countries, reliance on oil revenues renders social protection systems vulnerable to market fluctuations. In 2020, the drop in oil prices forced Saudi Arabia to scale back its Citizen’s Account program. In non-oil-producing countries like Tunisia, where public debt reaches 90% of GDP (IMF, 2023), governments struggle to fund ambitious social programs. Compensation for occupational illnesses, for instance, is often nominal: in Algeria, less than 1% of injured workers receive adequate compensation.
2 - The Burden of Informality and Unemployment
With high unemployment rates, particularly among youth (up to 40% in Tunisia and Egypt), and a dominant informal sector (70% of employment in some countries), social protection systems designed for formal workers exclude millions. In Algeria, only 20% of informal workers have access to health insurance. Women, predominant in this sector, are especially affected: in Morocco, fewer than 10% of them benefit from pensions (ILO, 2022).
3 - Crises and Instability
Conflicts in Syria and Yemen have devastated social infrastructure, rendering protection systems nearly inoperative. In Syria, the public pension system, which once covered 1.5 million people, has ground to a halt. In Lebanon, political instability hampers reforms, while refugee inflows—1.3 million Syrians in Jordan and 1.5 million in Lebanon—strain local resources. Programs like Lebanon’s Emergency Social Safety Net cover only 30% of refugees’ needs (UNHCR, 2023).
4 - A Complex Demographic Transition
The MENA region grapples with a dual demographic challenge: a youthful population in Egypt (60% under 30) and rapid aging in Lebanon (12% over 65). This demands versatile systems addressing diverse needs, from education and employment for youth to pensions for the elderly. Yet, pension systems, often in deficit, pose problems: in Tunisia, their shortfall reaches 2% of GDP (IMF, 2023). Disability allowances, though critical, remain marginal, as in Iraq, where only 5% of eligible individuals are covered.
III - Toward a More Inclusive Social Protection: Concrete Pathways
1 - Reforming Subsidies for Better Targeting
Universal subsidies, costly and inequitably distributed, must give way to targeted cash transfers. Jordan has led the way with its National Aid Fund, which reduced energy subsidies by 2% of GDP while supporting 200,000 households. In Egypt, biometric databases for the Takaful program have cut leakages by 20% through better beneficiary targeting.
2 - Integrating the Informal Sector
To include informal workers, innovative solutions are essential. In Morocco, the CNSS’s microinsurance programs could cover 500,000 workers by 2026, while universal health insurance has already reached 10 million people since 2021. Such models could inspire countries like Egypt, where informality prevails.
3 - Strengthening Institutions
Robust institutions are the cornerstone of effective social protection. This requires training civil servants, building reliable data systems, and enhancing coordination with NGOs and international partners. In Jordan, collaboration with the World Food Programme enabled aid distribution to 500,000 refugees in 2023. Public-private partnerships, as in Tunisia for health insurance, could further expand coverage.
4 - Investing in the Future: Health and Education
Sustainable social protection hinges on investments in education and health. In Egypt, the Takaful program has boosted school enrollment by 15% in rural areas since 2015. In Morocco, mandatory health insurance now covers 70% of the population, up from 30% in 2010 (Ministry of Health, 2023). These efforts reduce long-term vulnerabilities.
5 - Responding to Crises
Faced with recurrent crises, MENA countries must develop adaptive systems. Emergency cash transfers in Lebanon supported 1.2 million people between 2019 and 2023. Such mechanisms could be bolstered by international funding, such as the $1 billion allocated by the World Bank to MENA social programs in 2023.
Conclusion
Social protection in the MENA region stands at a crossroads. Progress is evident, with the rise of cash transfers and expanded health coverage, but challenges remain formidable: rampant informality, political crises, budgetary constraints, and demographic shifts. The figures speak volumes: 60% of the population lacks formal protection, pension systems teeter on collapse, and unemployment or occupational illness compensations are virtually absent. Yet, hope endures. Through bold reforms, strengthened governance, and digital technologies, MENA countries can build more inclusive and resilient systems, capable of reducing poverty and promoting shared prosperity.
