The Middle East and North Africa (MENA) region is estimated to have grown at a modest rate of 1.9 percent in 2024 and is expected to grow moderately at 2.6 percent in 2025. This is against a backdrop of increased global uncertainty, particularly in trade policy. The region is far from the frontier in standards of living, largely due to low productivity. This issue of the MENA Economic Update sheds light on a critical engine of productivity growth: the private sector. Businesses create jobs, boost livelihoods, and serve as a bastion of innovation in the economy. The MENA private sector, however, is not dynamic and is ill prepared to absorb shocks. To boost the performance of the private sector, governments in the region may need to rethink their role in engaging with markets including improving competition, the business environment, and the availability of data. Additionally, private sector businesses in the region can increase performance through better management practices and harnessing untapped talent in the region.