publicationJune 30, 2026

Cities that Work: Realizing the Jobs Potential of MENA’s Cities

Cities That Work cover page MENAAP

The World Bank’s flagship report, " Cities that Work: Realizing the Jobs Potential of MENA’s Cities," examines how cities can become stronger engines of job creation and economic growth across the region. Drawing on a benchmarking exercise covering 615 cities across MENA and comparing them with 8,426 cities worldwide, the report identifies the urban factors most closely associated with stronger employment and productivity outcomes. The report finds that local urban conditions matter significantly for economic performance. It presents a practical framework organized around four pillars—productive density, market connectivity, attractiveness to investment and talent, and public-private coalitions—and provides tailored recommendations for both large metropolitan areas and smaller cities. As MENA faces the challenge of creating millions of jobs for a growing and youthful population, the report highlights how strategic investments in infrastructure, housing, connectivity, livability, and governance can help cities unlock more and better jobs while strengthening competitiveness and resilience.

OVERVIEW

Cities are central to the future of jobs in the Middle East and North Africa. Urban areas already host most of the region’s population, firms, and economic activity, yet many cities are not fully translating urbanization into productivity growth and employment opportunities.

The report finds that while MENA cities benefit from dense populations and strategic geographic locations, many face constraints related to congestion, housing affordability, weak connectivity, limited labor mobility, underdeveloped tradable sectors, and insufficient coordination between public and private actors.

To address these challenges, the report proposes a framework built around four priorities:

  • Strengthening productive density by ensuring infrastructure, services, and land use support agglomeration economies and firm growth;
  • Expanding market connectivity through trade infrastructure, digital connectivity, transit systems, and housing access that connect workers and firms to opportunities;
  • Increasing attractiveness to investment and talent through improved livability, housing, skills development, and business-friendly environments; and
  • Building effective public-private coalitions that align urban planning, investment, and job creation strategies.

The report also highlights that policy priorities differ across city types. Large and primary cities should focus on diversification, tradable sectors, metropolitan integration, and investment attraction, while smaller cities should prioritize reliable services, connectivity to larger markets, and support for local comparative advantages.

  • MENA cities are critical to addressing the region’s jobs challenge and driving long-term economic growth.
  • The report benchmarks 615 MENA cities against 8,426 cities globally to identify the urban characteristics associated with stronger economic performance.
  • Local urban factors explain a significant share of differences in city economic outcomes.
  • The report identifies four pillars for urban job creation:

            o   Productive Density

            o   Market Connectivity

            o   Attractiveness to Investment and Talent

            o   Public-Private Coalitions

  • Market connectivity extends beyond trade infrastructure and includes digital connectivity, housing accessibility, and urban transport systems.
  • Affordable and well-connected housing is essential for labor mobility, talent attraction, firm competitiveness, and women's labor force participation.
  • Improving urban transport and connectivity can expand access to jobs, strengthen worker-firm matching, and support the growth of tradable sectors.
  • Cities that attract productive firms, skilled workers, and investment create stronger pathways to higher-quality employment.
  • Public-private coalitions are essential to aligning urban planning, infrastructure investment, and private sector development.
  • Large and primary cities should prioritize economic diversification, tradable sectors, metropolitan integration, investment attraction, and private finance mobilization.
  • Small and medium-sized cities should focus on basic services, local economic strengths, stronger regional connectivity, and collaboration with neighboring cities and national governments.
  • Strategic urban policies can help transform MENA’s cities into more competitive, productive, resilient, and inclusive places to live and work.

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