The Arab region is not on track to eliminate poverty in all its forms by 2030. The number of poor and vulnerable people has grown over the last decade. Although rising poverty has been most pronounced in the least developed countries, political instability, conflict and economic crises have contributed to an increase across the region. Long-standing structural challenges in the region’s economies, poor performance in growth and job creation, high levels of inequality and insufficiently redistributive fiscal policies pose significant obstacles to realizing inclusive growth that leaves no one behind and makes lasting progress towards ending poverty.
Addressing poverty is complex and deeply interlinked with progress on the 2030 Agenda for Sustainable Development as a whole. To sustainably end poverty, Arab countries must achieve inclusive economic growth characterized by decent employment opportunities for all (SDG 8). They must reverse accelerating trends towards wealth concentration that have made the region the most unequal in the world (SDG 10), break down gender barriers that contribute to the feminization of poverty (SDG 5), and ensure stable, inclusive institutional environments that enable peace and prosperity (SDG 16). Further, sustainable poverty reduction will require countries to address non-monetary contributors to poverty, including through reforms to ensure access to quality education (SDG 4), policies to promote food security and good health (SDGs 2 and 3) and investments to expand access to basic services, including clean water and sanitation (SDG 6), clean and affordable energy (SDG 7) and quality housing (SDG 11).
Recent crises have underscored the imperative of adopting far-sighted policies that address the needs of those left behind. Universal, robust, shock-responsive social protection systems must be established to alleviate and prevent poverty and ensure a dignified life for all.
Contingency | Status | |
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Medical insurance coverage | All Gulf Cooperation Council countries require expatriates to be covered by mandatory private health insurance coverage, with employers responsible for financing coverage. | |
Sickness leave and pay | Across Gulf Cooperation Council countries, migrant worker sickness coverage is an employer liability rather than a programme covered by social insurance. Once sick leave periods mandated by law are exhausted, employment can be terminated. Oman recently broke from this model by establishing social insurance sickness benefits for national and migrant workers. | |
Unemployment insurance | Although all Gulf Cooperation Council countries have introduced unemployment insurance schemes for national workers, few have provisions for migrant workers. Bahrain includes migrant workers in the national unemployment insurance scheme, while the United Arab Emirates has recently introduced an employee-funded private unemployment insurance scheme covering national and non-national workers. | |
Employment injury | Across the Gulf Cooperation Council, employment law accords migrant workers the right to medical treatment at the employer’s expense in the event of a workplace injury. Injured employees are entitled to continued salary payments for a defined period of time, which varies according to national legislation. In Bahrain and Saudi Arabia, employers must contribute to social insurance systems to ensure benefits for injured expatriate workers, with Oman also planning to extend such coverage to migrant employees. | |
Old-age, disability, death and survivors’ benefits | While Gulf Cooperation Council nationals are eligible for national pension schemes, non-national workers instead can receive an end-of-service indemnity financed by their employer. Irregularities in payment of the indemnity are relatively common, prompting efforts in Qatar, Saudi Arabia and the United Arab Emirates to manage contributions or otherwise hold employers accountable. Such solutions remain short of minimum social security standards, however. Bahrain and Oman have launched systemic reforms to replace the end-of-service indemnity with national provident funds.a | |
Maternity benefits | Gulf Cooperation Council nationals and migrant workers alike are entitled to statutory maternity leave, with applicable pay financed as an employer liability. Ongoing reforms in Oman may soon make it the only country in the Gulf Cooperation Council to break from this model, with new legislation establishing a nationalized social insurance scheme for maternity and paternity benefits. | |
Child and family benefits | Migrant workers are not entitled to family benefits in any Gulf Cooperation Council country, and in most cases, low-paid migrant workers are not able to bring their families to the country of destination. |
Women in the region face structural cultural and legal barriers to their access to economic opportunities. Compared to men, they are more likely to be unemployed and lack social insurance coverage.. | Jordan launched the Reaya programme in 2020, a social protection programme seeking to empower and retain working mothers in the labour force. It offers financial support for childcare to facilitate a return to work at the end of maternity leave through direct payments from the Social Security Corporation to approved childcare centres or via subsidy payments for mothers to arrange childcare at home. Reaya also supports registered nurseries to cover a range of operational costs.a,b
In 2021, the Sudan launched its Women’s Land Rights Agenda 2021–2030 to address inequalities in land ownership policies, administration and customs. The plan aims to reform land and agriculture policies through legal and social measures to counteract discriminatory traditional norms that limit women’s land ownership and inheritance rights.c |
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Children are significantly more likely to live in poverty than adults,d but only 20.5 per cent of households in the region are covered by family cash benefits.e Child poverty is associated with lower school completion rates and risks of lasting consequences in terms of generational mobility. | Cash transfer programmes benefiting families with children are valuable tools to reduce child poverty. They are increasingly employed in the region, with the Takaful programme in Egypt being the largest example.The Wives and Children’s Grant in Libya is currently the most universal child benefit, providing a monthly stipend to more than 1 million households. The benefit generally excludes children who do not hold Libyan nationality, however, except those with a Libyan mother.f | |
Older persons face elevated risks of financial insecurity and additional vulnerabilities as their health declines. The region has considerable inequality among older persons as many do not receive pensions, particularly those who have not contributed to a pension scheme, a disproportionate share of whom are women.g Of those beyond the statutory retirement age, only 37.2 per cent receive a pension, less than half the global average coverage rate.hFurther, while inflation has eroded the value of cash transfers and pensions, most Arab countries lack indexing mechanisms to compensate for decreased purchasing power. | Oman is among the minority of Arab countries with noncontributory social pensions for older people provided through an old-age benefit programme. Such measures make significant contributions to income security in old age, especially for women, as they provide income regardless of previous family or employment status.i As part of the social protection reform in Oman, a new universal old-age pension financed by the State budget provides a payment of around $300/month to all Omanis over age 60. Further reforms have unified social insurance oldage, disability and survivors’ pensions to streamline contributory pension schemes and harmonize eligibility conditions and benefit formulas.j | |
Informal workers lack labour protections, generally receive lower wages than workers in the formal sector, and are frequently excluded from social protection systems. |
Tunisia has launched a variety of programmes to extend social protection coverage to new categories of beneficiaries, including self-employed people, agricultural workers and low-revenue workers and artists. These programmes were elaborated through consultative processes with targeted stakeholders to tailor contribution systems and benefits to the needs of specific occupational groups. As a result, Tunisia has achieved relatively high rates of coverage for informal workers, with 81 per cent of the population covered by contributory health insurance and 61 per cent of workers contributing to a pension scheme, despite high levels of informality.k
Jordan launched the Estidama++ Fund in 2022 to address structural gaps in social protection coverage and facilitate informal workers’ registration in the social security system. The Fund offers coverage rewards for those signing up for the programme and short-term income support and contribution subsidies for informal workers. It has targeted a variety of groups with high levels of informality, including agricultural workers, tour guides, taxi drivers and self-employed workers. Notably, Estidama++ benefits are open to non-Jordanian workers, and outreach campaigns have sought to encourage women and refugees to join the programme.l |
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Persons with disabilities face physical, social and institutional barriers contributing to exclusion and high poverty rates, including discrimination, insufficient social support, and more limited access to education and employment opportunities than people without disabilities. | Lebanon recently began rolling out its National Disability Allowance, a social grant providing monthly income support to persons with disabilities to help address elevated rates of poverty and higher costs of living compared to persons without disabilities. The programme initially targets youth aged 18 to 28 to support them in transitioning to higher education or joining the labour market. It is slated to gradually extend to cover all persons with disabilities.m | |
Residents of rural and remote regions generally have fewer quality employment opportunities than urbanites, are less connected to basic infrastructure such as electricity and water, and must often travel long distances to attend school or obtain health-care services. In some countries, multidimensional poverty rates are as much as four times higher in rural areas than in urban ones.n | Morocco has several initiatives dedicated to reducing urbanrural disparities. These are largely guided by the Programme de Réduction des Disparités Territoriales et Sociales, which targets 12 regions with a total public investment of nearly 50 billion Moroccan dirhams. The programme aims to expand access to education and health services through the construction or renovation of facilities, and includes infrastructure investments to improve access to potable water, electricity and paved roads in rural areas.o | |
Internally displaced persons and refugees are often among the poorest people in the region. Many have lost savings and assets, and face discrimination in their new communities, including formal exclusion from public services. | Iraq has suffered decades of conflict, which has left an estimated 1.2 million people internally displaced.p Internally displaced persons are underserved by social protection schemes, face a range of barriers to services and have higher rates of unemployment than non-displaced populations. In 2023, Iraq took steps to assess the eligibility of internally displaced persons to rejoin the social safety net programme, including by conducting household visits in camps to identify and enrol beneficiaries in monthly cash transfer programmes.q | |
Migrant workers typically confront multiple challenges leaving them at a higher risk of poverty, including legal discrimination in terms of labour rights and minimum wages, vulnerability to exploitation and abuse by employers, and exclusion from social protection systems. | Algeria, as a signatory of the International Labour Organization (ILO) Migration for Employment Convention (1949), has integrated the principle of non-discrimination into many labour policies. The national minimum salary applies to all workers regardless of nationality, and the social insurance law extends coverage to expatriate workers (including domestic workers) on an equal basis as for Algerian employees.r
Sweeping social protection reforms adopted by Oman in 2023 restructured existing programmes and introduced new benefits, with non-Omanis gaining access to several forms of coverage. The reform gradually replaces existing systems reliant on weak employer liability provisions with coverage in national social insurance programmes for maternity and paternity, sickness and injury. It replaces the end-of-service indemnities system with a new provident fund for retirement, death and disability benefits.s |
1. ESCWA, forthcoming.
2. ILO, UNICEF and IPC-IG, 2020.
3. ESCWA, UNDP and UNICEF, 2022b.
4. ESCWA and ILO, 2021.
5. ESCWA, 2023b.
6. See the Gulf Research Centre, Percentage of nationals and non-nationals in Gulf populations (2020).
7. Zakat is an obligatory 2.5 per cent almsgiving for Muslims with savings and wealth above a minimum amount to finance aid for specified categories of beneficiaries.
8. ILO, 2023c.
9. Ibid.
10. ILO, 2023d.
11. Clements, 2022.
12. Webster, Moharram and Rosseau, 2019.
13. Gulf Center for Economics and Business Research, 2021.
14. See the Gulf Labour Markets, Migration and Population Programme, GCC: Number of employed workers and percentage of non-nationals in employed population in GCC countries (2015-2021, private sector). Accessed on 1 December 2023.
15. ILO, 2023h and 2023i.
16 . ESCWA, 2021b.
17. ILO, 2023h.
18. In this analysis, middle-income countries include Algeria, Egypt, Iraq, Jordan, Lebanon, Libya, Morocco, the State of Palestine and Tunisia.
19. ESCWA and others, 2023.
20. ILO, 2023e.
21. ILO, 2020.
22. See ILO, Social Protection, Palestinian Territory, Occupied.
23. See the ESCWA Arab SDG Monitor, accessed on 11 July 2023.
24. In this analysis, countries experiencing conflict or fragility include Iraq, Lebanon, Libya, the State of Palestine, Somalia, the Sudan, the Syrian Arab Republic and Yemen.
25. ESCWA, 2021b.
26. CALP Network, 2021.
27. ESCWA, UNDP and UNICEF, 2022b.
28. Ibid.
29. See Iraq Reconstruction and Investment (2018-2030).
30. See The National Durable Solutions Strategy (2020–2024) of Somalia.
31. See The National Development Programme for Post-War Syria, Syria Strategic Plan 2030.
32. UNDP, 2018.
33. ESCWA, UNDP and UNICEF, 2022b.
34. ESCWA, 2020.
35. ESCWA, UNHCR and IOM, 2021.
36 . See the Global Compact for Safe, Orderly and Regular Migration, United Nations General Assembly resolution 73/195.
37. See ILO, International Legal Framework for Migrants’ Social Protection.
38. ILO, 2023b.
39 . ESCWA, 2019.
CALP Network (2021). Humanitarian Cash and Social Protection in Yemen.
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__________ (2023b). Poverty in the GCC Countries: 2010–2021 Technical Report.
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International Labour Organization (ILO) (2020). Jordan’s maternity protection regulation key step forward. 23 October.
__________ (2021). World Social Protection Report 2020 2022: Regional Companion Report for the Middle East and North Africa (MENA) Region.
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__________ (2023e). Iraq Invests in building a social security system that protects workers. 17 May.
__________ (2023f). Ministry of Labour and Social Affairs to begin assessing Iraqi internally displaced persons and returnees in need of social protection assistance with UN support. 1 February.
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