Search Results (250)

Morocco is facing a situation of alarming water stress, aggravated by climate change, overexploitation of resources, and unequal distribution of water, placing the country among the most vulnerable to water scarcity in the MENA region. This study aims to investigate the dynamic relationship between economic growth and water stress in Morocco while highlighting the importance of integrated water management and adaptive economic policies to enhance resilience to water scarcity. A mixed methodology, integrating both qualitative and quantitative methods, was adopted to overview the economic–environmental Moroccan context, and to empirically analyze the GDP (gross domestic product) and water stress in Morocco over the period 1975–2021 using an Autoregressive Distributed Lag (ARDL) approach. The empirical analysis is based on annual data sourced from the World Bank and FAO databases for GDP, agricultural value added, renewable internal freshwater resources, and water productivity. The results suggest that water productivity has a significant positive effect on economic growth, while the impacts of agricultural value added and renewable water resources are less significant and vary depending on the model specification. Diagnostic tests confirm the reliability of the ARDL model; however, the presence of outliers in certain years reflects the influence of exogenous shocks, such as severe droughts or policy changes, on the Moroccan economy. The key contribution of this study lies in the fact that it is the first to analyze the intrinsic link between economic growth and the environmental aspect of water in Morocco. According to our findings, it is imperative to continuously improve water productivity and adopt adaptive management, rooted in science and innovation, in order to ensure water security and support the sustainable economic development of Morocco. Full article

This study investigates the impact of cultural openness on intertemporal consumption behavior in the Middle East and North Africa (MENA) region, using panel data from 14 countries spanning 2010 to 2022. Unlike prior research that primarily focused on lifestyle shifts or product preferences, this study explores how cultural globalization influences the trade-off between present consumption and future savings, as captured by the consumption-to-savings ratio (LCESR). Cultural openness is operationalized using the Cultural Globalization General Index (LCGGI), and its effect is analyzed alongside key control variables including Internet penetration, real GDP per capita, inflation, and tourism. To address endogeneity and unobserved heterogeneity, this study employs the system Generalized Method of Moments (GMM) estimator, supported by robustness check models. The findings reveal a significant positive relationship between cultural openness and LCESR in both the short and long run, indicating that increased exposure to global cultural flows enhances consumption tendencies in the region. Internet penetration and inflation negatively affect saving behavior, while GDP per capita shows a positive effect. Tourist arrivals exhibit limited influence. This study also highlights the importance of historical consumption behavior, as the lagged dependent variable strongly predicts the current LCESR. Robustness checks confirm the consistency of the results across all models. These insights suggest that cultural openness, digital infrastructure, and macroeconomic stability are pivotal in shaping consumption/saving patterns. The results carry important implications for financial education, digital consumption governance, and cultural policy strategies in the MENA region and similar emerging markets undergoing rapid cultural integration. Full article

This study investigates the impact of digital transformation on corporate tax avoidance in the banking industry, focusing on banks in the Middle East and North Africa (MENA). This study employs regression analysis on a sample of 123 banks in the MENA region, covering the period from 2011 to 2022. The results indicate a negative relationship between digital transformation and tax avoidance, with conventional banks showing a stronger inclination to adopt these trends compared to Islamic banks. Digital transformation is identified as an effective mechanism that enhances transparency and mitigates tax avoidance activities. Full article

Amid growing environmental concerns and an increasing push for sustainable development, countries in the Middle East and North Africa (MENA) region have taken proactive steps toward green growth, energy transition, and technological innovation. As a result, this study examines the effects of green growth, energy transition, technological innovation, financial inclusion, and urbanization on environmental sustainability in the Middle East and North Africa (MENA) region. Moreover, this study breaks new ground by exposing the hidden environmental costs of financial inclusion, urbanization, and technological innovation in the MENA region’s development trajectory, thereby providing compelling evidence for rethinking sustainability through an integrated approach that aligns economic ambition with ecological responsibility. Data for the studied variables were sourced from the World Bank database covering the period 1990 to 2021. The results show that green growth and energy transition significantly reduce CO₂ emissions, supporting the idea that economic expansion aligned with environmental priorities can contribute to ecological improvement. However, the impact of technological innovation is statistically insignificant, indicating that innovation in the region has not yet translated into meaningful environmental gains, possibly due to the dominance of non-green or industrial-focused innovation. Financial inclusion is found to increase CO₂ emissions, likely by facilitating greater access to credit and financial services that fuel energy-intensive consumption and production activities. Similarly, urbanization also contributes to rising emissions, reflecting the unsustainable nature of urban growth in many MENA region. Based on this study, we advocate for a coordinated regional approach to climate and energy policy, underpinned by shared governance and collective action. Full article

The MENA region, with its high solar potential and increasing investments in renewable energy, is transitioning away from fossil fuels toward more sustainable energy systems. To fully benefit from this transition and address issues such as intermittency and energy storage, “green” hydrogen is emerging as a key parameter. When produced using simple and cost-effective technologies like linear Fresnel reflector (LFR), it offers a practical solution. Therefore, assessing the potential of hydrogen production from LFR technology is essential to support the development of the energy sector and promote local industrial growth. This study investigates “green” hydrogen production using a 50 MW concentrated solar power (CSP) system based on LFR technology, where the CSP system generates electricity to power a proton exchange membrane electrolyzer for hydrogen production for three locations, including Ain Beni Mathar in Morocco, Assiout in Egypt, and Tabuk in Saudi Arabia. The results show that Tabuk achieved the highest annual hydrogen production (45.02 kg/kWe), followed by Assiout (38.72 kg/kWe) and Ain Beni Mathar (32.42 kg/kWe), with corresponding levelized costs of hydrogen (LCOH₂) of 6.47 USD/kg, 6.84 USD/kg, and 7.35 USD/kg, respectively. In addition, several sensitivity analyses were conducted addressing the impact of thermal energy storage (TES) on the hydrogen production and costs, the effect of reduced investment costs resulting from the local manufacturing of LFR components, and the futuristic assumption of the electrolyzer cost drop. The integration of TES enhanced hydrogen output and reduced LCOH₂ by up to 9%. Additionally, a future PEM electrolyzer costs projected for 2030 showed that LCOH₂ could decrease by up to 1.3 USD/kg depending on site conditions. These findings demonstrate that combining TES with cost optimization strategies can significantly improve both technical performance and economic feasibility in the MENA region. Full article

Energy poverty, resulting from poor energy efficiency and economic and social barriers to accessing appropriate, modern, and sustainable energy services, remains a critical issue in Jordan, a country facing growing climate pressures, particularly given its history of rapid urbanization. This study examines energy poverty through a multidimensional lens, considering its spatial and socio-demographic variations across Jordan. Drawing on data from 19,475 households, we apply a novel energy poverty index and binary logistic regression to analyze key determinants of energy poverty and discuss their intersection with climate vulnerability. The energy poverty index (EPI) is structured around four pillars: housing, fuel, cooling, and wealth. The results show that 51% of households in Jordan are affected by energy poverty. Contributing factors include geographic location, gender, age, education level, dwelling type, ownership of cooling appliances, and financial stability. The results indicate that energy poverty is both a socio-economic and infrastructural issue, with the highest concentrations in the northern and southern regions of the country, areas also vulnerable to climate risks such as drought and extreme heat. Our findings emphasize the need for integrated policy approaches that simultaneously address income inequality, infrastructure deficits, and environmental stressors. Targeted strategies are needed to align social and climate policies for effective energy poverty mitigation and climate resilience planning in Jordan. Full article

This research explores the impact of ownership structure on the financial performance of Leveraged Buyout (LBO) transactions in the MENA region, a key emerging market region. Drawing on agency theory by Jensen & Meckling and the capital structure theory of Modigliani and Miller, the study investigates how different shareholder configurations, particularly managerial equity participation, influence LBO outcomes. Based on a sample of 233 transactions conducted between 2000 and 2023, the research adopts a quantitative methodology grounded in a hypothetico-deductive approach. The analysis focuses on the interactions between managerial ownership, leverage, target firm size, and operational performance. The findings support the agency theory premise that managerial ownership aligns interests and enhances performance, showing a positive relationship between managerial equity stakes and financial outcomes. Conversely, the effect of leverage, central to Modigliani and Miller’s propositions, proves more nuanced, reflecting the region’s unique financial constraints and market imperfections. Firm size, meanwhile, shows no direct correlation with performance improvement. These insights underscore the complex mechanisms behind LBO success in the MENA context and offer practical and theoretical implications, particularly regarding governance practices and institutional frameworks. The study also outlines avenues for future research, including a deeper examination of regional governance dynamics. Full article

Achieving a more inclusive financial system is crucial to unlocking economic opportunities, reducing inequality, and ensuring that no person will be excluded from access and usage of financial and banking services. Even if financial services are widely available in some areas, others, especially in developing nations, have low levels of financial inclusion and continue to confront obstacles that restrict economic growth and participation. This study examines the key factors influencing financial inclusion by analyzing 74 banks across 10 MENA countries from 2010 to 2021. It performs the System Generalized Method of Moments (SGMM) technique as an empirical approach. The results indicate that economic growth, education, infrastructure, and institutional quality have a significant impact on improving the level of financial inclusion in the MENA region. The results of the sensitivity analysis reveal that, in either GCC or non-GCC countries, key determinants include education, infrastructure, institutional quality, and GDP growth, leading to a more inclusive financial system. Full article

Background: In today’s rapidly evolving business environment, organizational agility (OA) has become increasingly critical for companies to maintain competitiveness and sustainability. Business intelligence (BI) is pivotal in enabling organizational agility by providing the necessary tools and insights to navigate uncertainties and capitalize on opportunities. This study aimed to investigate the relationship between BI and organizational agility, particularly within the pharmaceutical manufacturing sector in the Middle East and North Africa (MENA) region. The systematic literature review followed Kitchenham’s guidelines, which was supplemented with a VOS analysis to visualize the interconnectedness of BI and organizational agility. The analysis revealed a direct relationship between BI and organizational agility, with the critical variables of innovation, competitive advantage, firm performance, and dynamic capabilities influencing this connection. The MENA region shows promise in contributing to this field, but further research is needed. Leveraging BI capabilities can enhance organizational agility, positioning companies for sustained success amidst uncertainty. Addressing challenges and fostering a supportive organizational culture is essential for realizing the full potential of BI-driven agility. This study makes an original and timely contribution by examining the relationship between business intelligence (BI) and organizational agility (OA) through a systematic literature review across multiple countries. The study focuses specifically on the Middle East and North Africa (MENA) region, which has received insufficient attention in previous research. Unlike previous studies that focus on isolated cases, this work combines bibliometric analysis with a structured review methodology. It provides a clear summary of how BI supports key outcomes such as innovation, dynamic capabilities, and competitive advantage Full article

Revealing the complex system of transboundary conflicts would help to understand the behavior of states and anticipate potential actions that would collectively reflect the state doctrine. However, a specific approach to the state political doctrine (SPD) for governing transboundary water has not been formalized. The core academic contribution of this research is to formalize the structure of the SPD for transboundary water, which might assist in fostering water cooperation and peacebuilding in one of the most conflict-prone regions—the Middle East and South Africa—by examining the upstream countries’ behavior. Case studies include Turkey in the Euphrates–Tigris Basins, Israel in the Jordan River Basin, and Ethiopia in the Nile River Basin. The theoretical framework presents a new paradigm that systematically links a state’s essential drivers, political philosophy, and potential actions, employing the Hegelian dialectic of thesis–antithesis–synthesis and the three Doctrines of Being, Essence, and Concept to articulate the state’s behavior and its indispensable core principles for survival. It is integrated with Arnold Toynbee’s challenge-and-response theory to analyze upstream motives. This study reviewed 328 documents and pieces of literature alongside 105 expert discussions. The key findings include the three upstream countries embracing different SPDs to address specific challenges at the state level, where Turkey employs the Water-Bank Doctrine, Israel utilizes the Identity-Seeking Doctrine, and Ethiopia adopts the Nation Rise Power Doctrine. Besides the critical external challenges that limit water availability, such as the impact of climate change, the time factor is a crucial key to shifting the bargaining power and impacting the adopted SPD, thereby affecting water diplomacy and regional water cooperation. Full article

Using panel data spanning 2004–2023 of 21 countries in the MENA (Middle East and North Africa) region, we measure systemic risk and assess its influence on key banking sector performance indicators, including financial stability (proxied by commercial bank branches per 100,000 adults), providing evidence from the emerging market context. One of the key findings of the study is the pivotal role played by financial access in promoting banking stability. In particular, the density and outreach of commercial banking branches were shown to have a stabilizing effect on the banking system. Also, findings reveal that systemic risk significantly undermines bank stability and operational efficiency while constraining financial depth. The study contributes to the literature by offering empirical evidence on the adverse effects of systemic risk in a region characterized by financial volatility and structural vulnerabilities. These findings align with existing global evidence that links financial development with reduced systemic risk, yet they also offer new empirical insights that are contextually relevant to the MENA region. The findings provide actionable recommendations for policymakers. Regulatory authorities in the MENA region should consider strategies that not only enhance the robustness of financial institutions but also promote inclusive access to banking services. The dual focus on institutional soundness and outreach could serve as a cornerstone for sustainable financial stability. Tailored policies that encourage branch expansion in underserved areas, coupled with incentives for inclusive banking practices, may yield long-term benefits by reducing the concentration of risk and improving the responsiveness of the financial system to external shocks. Full article

This paper examines the impacts of observed versus uncertain (stochastic) institutional quality of corporate debt financing. This paper compares the impacts of two distinct levels of institutional quality in developed and developing economies. World governance indicators (WGIs) are used as proxies for institutional quality. Stochastic Geometric Brownian Motion (GBM) is used to quantify the institutional uncertainty of WGIs. The results of GLS estimates using a sample of 309 nonfinancial listed firms in G8 countries and 373 nonfinancial listed firms in MENA countries covering the years 2016–2022 show (a) positive (negative) stochastic impacts of voice and accountability (government effectiveness and political stability) on debt financing in the G8 and MENA regions; (b) although potential improvements in institutional quality are shared concerns among G8 and MENA countries, the former outperforms the latter in terms of creditors’ contract protection and enforcement, paving the way for public policy makers in the MENA region to enhance regulations that protect debt contractual obligations; (c) macroeconomic variables have sporadic impacts; GDP growth is significant in G8 but not in MENA countries; (d) the negative impacts of inflation rates are consistent in both regions; and (e) unemployment plays a negative signaling role in the G8 region only. This paper contributes to the related literature by examining the uncertain impact of institutional quality on corporate debt financing. This paper offers implications for policy makers, directing them to focus on institutional endeavors in a way that helps companies secure the debt financing required to support investment growth. Full article

The Global Health Network Middle East and North Africa (TGHN MENA) was officially launched on 21 October 2024, representing a pivotal initiative to address the region’s distinct and complex public health challenges. Building on the comprehensive global framework of the central TGHN network, the regional TGHN MENA network was founded by region-based experts with support from the TGHN team. The network was established as a pioneering initiative to bring together 18 partners from 14 countries, representing various sectors such as academia, policymakers, and governmental and non-governmental organizations, to tackle pressing issues such as chronic diseases, mental health, and climate change impacts. High-level panel discussions were held to define the goals of TGHN MENA in building resilient public health systems. This perspective outlines the network’s vision for building resilient health systems through research prioritization and capacity strengthening, amidst growing uncertainties in the regional public health landscape. The MENA region has diverse and complex public health challenges related to health systems, emergencies, chronic disease, mental health disorders, and climate change, due to cultural, social, and geographic differences. The TGHN MENA network is a community of practice and can identify commonalities and priorities and find shareable solutions. Key strategies proposed include establishing an open-access, online platform to support knowledge exchange, implementing on-the-job training and capacity-strengthening initiatives, and emphasizing the use of artificial intelligence in public health research. This perspective outlines TGHN MENA’s inaugural one-year action plan, which emphasizes regular knowledge-sharing activities, capacity-building initiatives, and sustained partners’ commitment as foundational steps towards improved public health outcomes in the region. Full article

The Middle East and North Africa (MENA) region has faced challenges like political instability and economic fluctuations, which have impacted non-performing loans (NPL) levels. At the same time, over the years, reforms and regulations have encouraged stronger board structures to enhance corporate governance and improve risk management. The purpose of this paper is to investigate how board characteristics affect non-performing in the MENA region. Board characteristics shape governance quality, which influences risk management and reduces banks’ risk-taking behaviours. Hence, effective governance can reduce non-performing loans by improving oversight and credit decisions. To this end, we used a sample of 70 banks operating in 12 countries in the MENA region from 2010 to 2022. The System Generalized Method of Moments (SGMM) was employed as an empirical technique. To benefit from a comparative analysis, we divided the entire sample into two subsamples. The first subsample covers six Gulf Cooperation Council (GCC) countries with 42 banks. The second subsample is also relative to six non-Gulf Cooperation Council (non-GCC) countries with 28 banks. The empirical findings indicate that the presence of independent board members, a higher number of female board members, board remuneration, and the board index decrease NPLs across all regions, including MENA, GCC, and non-GCC. However, we found that board size, tenure, and duality increase NPLs. The results of this paper are beneficial for both policymakers and bankers, as they provide insights into how governance through board characteristics influences credit risk. These results support better decision-making in board appointments and governance practices to improve risk management and reduce non-performing loans. Full article

This paper empirically investigates the moderating role of the firm’s board characteristics in the relationship between ESG controversies and firm performance. The collected sample includes 461 non-financial companies in 10 MENA countries from 2010 to 2023. Data were collected from Refinitiv Eikon Platform (LSEG). This empirical paper applied panel GMM regression to estimate the relationship. The paper controls for firm characteristics such as firm size and leverage while controlling for macroeconomic variables such as inflation and GDP. The results indicate that there is a negative impact of ESG controversies on the performance of firms in the MENA region. Moreover, the analysis of corporate governance’s moderating role reveals that both board independence and gender diversity substantially diminish the adverse effects of ESG controversies on firm performance, indicating that well-governed firms are more adept at mitigating risks linked to ESG-related controversies. Our results hold based on the robustness of the results. Full article