As the world transitions towards sustainability, the MENA region is increasingly  adopting green and circular economy (GCE) principles to mitigate environmental challenges, drive sustainable growth, and diversify economies. The green economy focuses on economic development while minimising environmental harm, whereas the circular economy builds on this by promoting resource efficiency, waste reduction, and recycling. Together, these approaches aim to decouple economic growth from resource depletion.

With vast solar and wind resources, the MENA region has the potential to become a global leader in renewable energy, particularly solar power, which could meet nearly half of the world’s electricity demand. Countries such as  Saudi Arabia, the UAE, Morocco, and Egypt are making substantial investments in green hydrogen and renewable energy projects to position  themselves at the forefront of the clean energy sector. At the same time, a transition to a circular economy – emphasising resource efficiency and waste reduction – presents an opportunity to enhance sustainability while generating economic benefits.

By adopting circular approaches, the GCC countries could save up to $138 billion by 2030 and cut CO2 emissions by 150 million tonnes annually. Decarbonisation efforts across the region could create up to 10 million green jobs by 2050 through investments in renewable energy, reforestation, and waste management. However, realising this potential requires comprehensive policy reforms that redirect fossil fuel subsidies towards green investments, a workforce equipped with skills relevant to emerging green industries, and strengthened international collaboration to drive innovation and financing. 

Despite ongoing efforts, significant challenges persist. Currently, only 5% of waste in the MENA region is recycled, with the majority ending up in landfills. Insufficient infrastructure, limited funding, a lack of awareness of circular economy practices, and weak legislative frameworks continue to hinder the widespread adoption of sustainable economic models. Overcoming these barriers requires a coordinated approach between governments, the private sector, and international organisations. By improving access to finance, enhancing technical expertise, and encouraging regional partnerships, the MENA region can accelerate its transition towards sustainable economic development while mitigating climate risks.

Green Entrepreneurship: A Path to Sustainable Growth

Entrepreneurship is a significant driver of economic growth in the MENA region, with Micro, Small, and Medium Enterprises (MSMEs) accounting for 70% of total employment. These businesses are central  to  the transition towards a green economy but often face challenges that hinder their ability to scale. Many enterprises remain reliant on traditional industries, struggle with outdated technologies, face high operational costs, and receive limited investment in research and development. These obstacles stifle  innovation and as a result, many small businesses fail within a few years.

Green MSMEs encounter additional  barriers, including inadequate  support structures, restricted  access to finance, and low  public awareness about sustainable practices. Addressing these challenges requires a holistic approach, including the expansion of financing mechanisms to support green startups, the introduction of inclusive policies that promote the growth of environmentally friendly businesses, and stronger business support organisations that provide guidance and resources for entrepreneurs. 

Although progress is being made, further reforms are necessary to eliminate regulatory roadblocks, improve infrastructure for green enterprises, and raise awareness about the long-term benefits of the sustainable business models. Strengthening business ecosystems and encouraging innovation are crucial to ensuring the long-term success of green entrepreneurship across the MENA region.

Women in the Green and Circular Economy

Women remain significantly underrepresented in the renewable energy and sustainability sectors, holding only 32% of jobs in the global renewable energy industry. In the MENA region, societal and structural barriers further restrict their participation. Many women entrepreneurs face cultural norms that limit their access to education and employment in green industries. Gender biases in lending and investment also pose additional challenges, making it difficult for women-led businesses to secure the financial resources needed for sustainable projects.

Cultural expectations often discourage women from pursuing careers in male-dominated fields such as renewable energy or waste management. Leadership roles in environmental policymaking and green ventures remain largely inaccessible to women. Financial exclusion continues to be a major challenge, with research indicating that 66% of women founders believe investors are less likely to fund women-led startups. These barriers limit the ability of women to scale their businesses and contribute effectively to the region’s green transition 1 2 3. 

Despite these challenges, women are already driving sustainability by developing innovative solutions that align with global environmental goals. Expanding mentorship programmes can strengthen their access to industry leaders, providing critical networks that support success in green sectors.

Increasing women’s participation in the green and circular economy requires targeted interventions. Business support organisations must introduce gender-sensitive financial products such as microloans and grants designed specifically for female entrepreneurs. Partnerships with venture capital firms can provide women-led businesses with access to larger funding pools. Training programmes focused on circular economy practices, investment pitching, and green technologies can help equip women with the skills necessary to thrive. Establishing networking platforms where women can engage with investors, policymakers, and industry experts is also essential for fostering collaboration and knowledge sharing. Policy advocacy remains critical in addressing systemic barriers, ensuring equal financial access, and promoting the economic benefits of women’s involvement in sustainability.

Voices of change: Women entrepreneurs driving the green transition

Despite obstacles, women entrepreneurs are demonstrating their capacity to lead the green transition in MENA. Aseel Jaafar, a Lebanon-based entrepreneur previously supported by SPARK programmes, sees immense potential for women-led green businesses. She believes that long-term, sustainable initiatives designed with input from women entrepreneurs can create real impact.

“Women understand the challenges firsthand and can help shape solutions that create real change,” she says.

Through her agribusiness, Cultiva, Aseel is pioneering the transformation of biowaste into high-value bioresources, such as organic growing mediums and biofertilisers. By upcycling agricultural waste, Cultiva reduces environmental impact, supports local farmers, and promotes regenerative agricultural practices, contributing to a greener, more sustainable future. 

Aseel also emphasises the importance of investment in women-led green businesses:

“Support to women-led green businesses must go beyond short-term initiatives and focus on long-term, sustainable impact. We need more tailored financial support, stronger market access opportunities, and policies that incentivize green innovation.,” she says.

Despite these challenges, Aseel is growing Cultiva, turning agricultural waste into valuable bioresources and proving that change is possible. Her story is just one example of the growing movement of women entrepreneurs in MENA’s green economy, each contributing in their own way to sustainability and economic transformation.

In Morocco, Nouhaila El Batal, is bringing sustainability to the world of herbal teas with her Marrakesh-based, rural business, INFUFLAV, also known as K’ammoussa. Using organic farming, sustainable irrigation, and soil regeneration techniques, she ensures each blend preserves its natural aromas and medicinal properties. Nouhaila envisions business support programmes offering more flexible financing, mentorship, and policy support to help women entrepreneurs thrive. Committed to empowering rural women’s employment, she believes in the power of accessible support to drive growth.

“We need accessible, inclusive, and action-oriented support to scale our sustainable businesses,” she shares.

She believes that breaking down barriers and amplifying women’s voices in sustainability is key to creating lasting change.

“Empowering women in sustainability isn’t just about equality, it is about driving systemic change for a better future,” she says.

The MENA region has the potential to leverage the contributions of women entrepreneurs in driving the green transition. Business support organisations can play a critical role in addressing cultural barriers, expanding financial access, encouraging inclusive business ecosystems, and bridging knowledge gaps in technical and leadership roles.

Expanding tailored financial products, strengthening capacity-building initiatives, creating networking platforms, and implementing strategic policy advocacy will be essential in empowering women entrepreneurs in sustainability. Programmes like Green Forward demonstrate how collaborative efforts between BSOs, MSMEs, governments, and international organisations can drive progress toward a more inclusive and sustainable future, through which SPARK plays a key role at the Meso level by strengthening business support organisations. Empowering women is not only a social imperative but also a critical step toward achieving climate resilience and economic growth across MENA.