A Shift Toward Smarter Regulation in the Middle East and Africa

As global competition intensifies and regulatory landscapes evolve, governments across the Middle East and Africa (‘MEA’) are increasingly embracing reform to enhance ease of doing business. According to the World Economic Forum’s 2024 executive survey, a growing number of MEA countries are perceived to be making meaningful strides in streamlining government regulation and compliance.

The latest data reveals that standout performers such as Rwanda, Saudi Arabia, and the United Arab Emirates have carved out leadership positions in regulatory efficiency. These economies occupy the coveted top-right quadrant of the 2024 Global Ease of Compliance chart, signifying not only relatively simple regulatory environments but also consistent improvement since 2018. Their approach underscores how policy innovation and administrative modernization can translate into real competitive advantages.

Saudi Arabia’s upward shift reflects broader national ambitions under Vision 2030, which includes reducing bureaucratic friction to stimulate private sector growth. Rwanda, often cited as a model for reform in Sub-Saharan Africa, continues to push digital transformation and investor-friendly frameworks. The UAE, long a regional benchmark, maintains its trajectory by continuously refining its business environment to attract global capital and talent.

While these success stories shine brightly, the picture is more mixed elsewhere in the region. Nigeria and South Africa, for instance, remain mired in regulatory complexity, with limited perceived improvement since 2018. For many African and Middle Eastern economies, inconsistent enforcement, bureaucratic hurdles, and legacy systems still hinder productivity and investor confidence.

Nonetheless, the broader regional momentum is promising. Several MEA governments are leveraging industrial policy—notably through national manufacturing missions, green economy plans, and startup incentives—as tools to reshape their regulatory environments. Nearly half of global executives believe such policies are essential for future competitiveness, especially in industries like energy, digital infrastructure, and critical supply chains.

The challenge ahead lies in ensuring that these reforms go beyond headline initiatives and deliver tangible, inclusive outcomes. Regulatory modernization must avoid becoming an instrument of rent-seeking or favoritism. Instead, it must foster competition, attract long-term investment, and empower local entrepreneurship.

For MEA economies aiming to lead in the industries of tomorrow, regulation is a real strategic lever for sustainable growth.