In a region rich with opportunity, companies are learning that doing good for the planet and society is now just as important as doing well in the market
By Jane Khedair. Executive Director, Institute of Entrepreneurship and Private Capital (IEPC), London Business School
In recent years, business leaders across the Middle East and North Africa have awakened to a simple yet profound truth: in tomorrow’s world, success will not be judged by profits alone. Enterprises will be measured by how deeply they reflect the needs of society and the natural world. A new research release from the World Economic Forum, in collaboration with Bain & Company, charts how MENA firms can navigate the mounting pressures of global sustainability expectations, pressures that are no longer optional, but essential.
The WEF’s report, “Prioritizing Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses”, lays out a compelling roadmap. It warns that over the next two years, some 70 per cent of the global economy will be subject to mandatory sustainability reporting. In the same breath, it spotlights acute environmental risks, from water scarcity and biodiversity loss to emissions and waste, that disproportionately affect our region. These twin dynamics mean that MENA entrepreneurs must reimagine their strategies.
MENA offering exciting opportunities for VCs and startups
The region is at a crucial juncture. On one hand, its geography gives it unparalleled renewable energy potential, vast solar and wind capacity that can power not just domestic ambitions but regional leadership. On the other hand, many local businesses, especially SMEs, remain underprepared for the sustainability transition. A 2023 survey of MENA SMEs found that nearly two-thirds had little or no knowledge of energy efficiency or renewable technology.
For founders in MENA today, sustainable entrepreneurship is not an optional add-on — it must be part of the foundation. Integrating environmental and social responsibility from the start is no longer virtue signalling; it is a strategic imperative.
What does that look like in practice? First, founders must begin with materiality: understanding what environmental or social issues genuinely matter for their sector and geography. Whether it’s water use for agri-tech ventures or emissions in logistics, the choice of focus must be relevant and credible. Next comes measurement and transparency. Even before formal regulation kicks in, smart entrepreneurs will build the systems to monitor, report, and improve their environmental and social footprints.
Financing is evolving, too. Green-linked loans, sustainability performance instruments, and impact investment are gaining traction globally, and MENA investors and banks are increasingly tuning into these tools. The WEF report highlights best practices already deployed in the region: green sukuk, sustainability-linked lending, and sector‐specific investment frameworks.
MENA offering exciting opportunities for VCs and startups
But the product or business model itself must be rethought with sustainability in mind. From supply chains and procurement to energy usage and waste management, every link offers opportunities for innovation. Circular models, regenerative agriculture, modular design, local sourcing, these are not just ideals, they are pathways to resilience and differentiation. And of course, social inclusion must go hand in hand: hiring practices, local community engagement, fair wages and skills development cannot be afterthoughts.
MENA has a few shining examples already. Large regional players like Majid Al Futtaim are pushing sustainable procurement and green bonds; Emirates Global Aluminium has launched low-carbon aluminium initiatives; and energy incumbents are partnering on renewable buildouts. These examples set a higher bar and help shift norms for smaller firms.
MENA offering exciting opportunities for VCs and startups
Yet the challenges remain real: regulatory ambiguity, lack of expertise, upfront cost barriers, and limited access to green finances are all obstacles. To overcome them, founders must lean into collaboration, with governments, universities, NGOs, and peers, to share knowledge and co-create infrastructure and standards.
Policymakers have a key role to play. Consistent regulation, transparent incentives, renewable energy rollout, carbon pricing, and support for green R&D all help strengthen the ecosystem. Entrepreneurs must not view policy as external, but as part of the system they help build. Advocacy, multi-stakeholder platforms, and coalition building will be as important as building a product.
If this moment is seized, the rewards could be transformative. We may see the rise of “impact unicorns”, high-valuation businesses whose worth is tied both to market performance and net positive environmental and social impact. MENA’s integration into global value chains could deepen as sustainability becomes a criterion for partnerships and exports. And perhaps most vitally, a generation of businesses will emerge that are resilient to climate shocks, resource disruptions, and shifting consumer expectations.
Looking ahead, it is clear that the next decade will test whether the region’s enterprises can reconcile economic ambition with ecological stewardship. For entrepreneurs in MENA, the question is no longer whether to pursue sustainability, it is how fast, how deeply, and how boldly.
The future of business in this region demands that we build enterprises that do well by market metrics and do good in the broader sense. To borrow a phrase, I’ve shared before: today’s founders see that “motivation is often equally as much about doing good for society by giving back.”
“Motivation is often equally as much about doing good for society by giving back”
That spirit must now be matched by systems, capital, and culture. The time for sustainable enterprise in MENA is now, and the opportunity is immense.
