Regional Integration in the Union for the Mediterranean 2025

3. Infrastructure

Abstract

The chapter has two parts. The first part presents the overall analysis on progress of connectivity infrastructure since the 2021 Progress Report and introduces policy recommendations. The second part outlines the indicators that support the analysis and recommendations/

• I1. Cross-border projects in transport

• I2. FDI regulatory restrictiveness in the transport sector

• I3. Logistics Performance Index (LPI)

• I4. Liner Shipping Connectivity Index

• I5. Import and export dwell time

• I6. Cross-border projects in energy

• I7. FDI regulatory restrictiveness in the electricity sector

• I8. Electricity trade flows

• I9. Electricity generation

• I10. Renewables in installed electricity capacity

• I11. Fixed broadband subscriptions

• I12. Mobile broadband subscriptions

The role of infrastructure integration

Well-developed and interconnected infrastructure networks are key enablers of regional integration. By improving transport links, energy grids and digital connectivity, member countries of the Union for the Mediterranean (UfM) can reduce transaction costs, enhance supply chain efficiency, facilitate people mobility and knowledge exchange, and ultimately create more robust economic ties that contribute to overall growth and economic development.

The 2021 UfM Ministerial Declaration on Energy and 2023 Ministerial Declaration on Transport establish commitments to the development of sustainable, resilient and inclusive energy and transport infrastructure, acknowledging the benefits of infrastructure integration for the region’s prospects. Both declarations affirm the importance of adopting a regional approach to infrastructure development, underscoring the salience of regional cooperation and multistakeholder engagement for improving connectivity. Also, the declarations reflect a growing recognition of the need for clean, affordable and secure infrastructure connectivity in line with the Paris Agreement and the UN Sustainable Development Goals (SDGs), e.g. SDG 7 on ensuring access to clean and affordable energy.

Monitoring infrastructure integration in the UfM. This chapter analyses three types of infrastructure: transport, with a focus on freight transport; energy; and communication networks. It also explores regulatory issues affecting foreign direct investment (FDI) in infrastructure and network performances. Selected indicators are used to monitor progress in the development of transport infrastructure (I1-I5), energy infrastructure (I6-I10), and digital infrastructure (I11-I12) in the UfM, to identify policy priorities for improving connectivity in the region.

What we have observed since the 2021 Report

In general, the analysis found that improvements have been made since the Progress Report 2021, with continuing disparities in infrastructure development and access across the UfM region. The Southern Mediterranean countries, with a few exceptions, have been slow to develop new transport and energy infrastructure, despite strong potential in the energy sector. Also, digital infrastructure has advanced, although the introduction of broadband has been slower within the MENA and Western Balkan countries.

Infrastructure integration displays steady improvements, yet connectivity remains fragmented

Maritime transport remains the main channel for trade across the region. Although many major ports are located in the Northern Mediterranean, ports in Morocco and Egypt have also become important hubs, and there are opportunities to develop new port infrastructure across the Southern and Eastern Mediterranean. Several countries are making substantial investments to strengthen their port infrastructure. Morocco aims to expand port infrastructure to leverage its strategic geographical position as a key logistics hub and maritime hub in Africa and the Mediterranean (2030 National Port Strategy); and Egypt has already linked its industrial development plans and energy transition to the improvement of Suez Canal and accompanying port infrastructure. Development of a high-speed rail network connected to main ports is a priority in both countries as well as in Jordan. Algeria has set up an ambitious plan to improve port infrastructure and invest in high-speed railways.

Indeed, surface freight transport in the UfM is still heavily dependent on road infrastructure. This highlights the need for diversified, multimodal networks that can integrate rail and maritime routes and enhance efficiency and cost-effectiveness, thereby optimising routes and reducing transit times. Multimodal networks also promote sustainability and reliability, lowering greenhouse gas emissions and building resilience in supply chains. Overall, UfM countries account for 13.4% of global transport emissions, reflecting a 40% increase since 1990, underscoring the urgent need to cooperate to accelerate decarbonisation efforts in the transport sector.

Deploying broadband network infrastructure is needed to support diverse use cases and provide high-quality communication services. The development of new fixed and mobile broadband networks is important for the digitalisation of the transport and energy sectors, enhancing efficiency and reducing costs.

The analysis confirms that in the MENA region and Western Balkan countries, improvements in the overall performance of the logistics systems are needed, as efficient logistics (e.g. multimodality of transport, automation of custom formalities) is critical for facilitating trade and improving export competitiveness, especially for small and medium-sized enterprises seeking access to regional and global markets.

The green transformation faces challenges

The green transformation represents a compelling opportunity for deeper economic integration across the Mediterranean, connecting the abundance of renewable energy potential in the Southern Mediterranean encouraged by the energy diversification and security goals of Northern Mediterranean countries. The EU’s strategic goals on green transformation have accelerated investments in renewable energy and infrastructure, including solar, wind and green hydrogen projects.

Major initiatives such as the Elmed interconnection between Tunisia and Italy and the GREGY project between Egypt and Greece represent important milestones in accelerating pan-Mediterranean cooperation around green energy. These projects point to the role MENA countries play in the EU's target of importing 10 million megatons of renewable hydrogen per year by 2030. The European Union's broader goal of achieving climate neutrality by 2050, underpinned by its Critical Raw Materials Strategy, emphasises the importance of long-term strategic partnerships with neighbouring regions.

At the same time, the drive towards cross-border energy markets coexists with an urgent need for structural reforms within MENA economies. Long-standing energy subsidies have led to inefficient consumption patterns, undermined fiscal resilience, and delayed the transition to sustainable energy systems - in a context where domestic energy demand is projected to rise, driven by demographic, economic growth, industrialisation and climate change. Improving energy efficiency and reforming pricing frameworks will be crucial to supporting MENA's transition to green energy and boosting the region's potential to decarbonise its domestic energy consumption (and possibly turn into a net renewable energy exporter in the longer term).

Reforms to ease FDI restrictions have progressed but challenges remain, especially in MENA

The investment gap in infrastructure remains significant, particularly in Southern Mediterranean and Western Balkan countries, where infrastructure development is underfunded and concentrated in a few key areas.

Both MENA and Western Balkan countries have implemented statutory reforms to improve the investment climate for foreign investors. However, North Africa countries continue to maintain stringent FDI regulations in the transport sector. In addition, institutional or informal barriers to investment, inconsistent enforcement of statutory rules, and distortions caused by state ownership in key sectors (and special regulatory treatment received by particular firms) have been identified as sources of discrimination cutting across some sectors in MENA (OECD, 2021[1]).

The Western Balkans have made significant progress in fostering a more favourable business climate for FDI by reducing investment restrictions and aligning regulatory frameworks more closely with EU benchmarks. The region can benefit from increased FDI to bridge the infrastructure gap (OECD, 2024[2]). Cooperation with EU institutions is pivotal, through initiatives such as the Economic and Investment Plan for the Western Balkans for 2021–2027, which aims to mobilise EUR 9 billion to accelerate the green and digital transitions and enhance regional integration.

Sub-regional connectivity at a glance

The EU27 exhibits high levels of connectivity across transport, energy and communication infrastructure, supported by initiatives like TEN-T and significant investments in cross-border energy interconnectors. The war in Ukraine, by disrupting energy supply chains, highlighted the EU’s need for diversified energy sources. In this context, the EU’s robust framework for trade facilitation, digitalisation and multimodal infrastructure has helped maintain resilience.

Transport infrastructure in the MENA region is advancing, with Morocco and Egypt making significant progress. Flagship projects such as the Trans-Maghreb Highway and the expansion of maritime and rail networks are improving regional connectivity. Relatively open investment regimes have positioned both countries as emerging hubs for logistics and green energy. Notably, green hydrogen is gaining in strategic importance, with investments targeting the Suez Canal Zone for green fuel production and the Tanger Med–Hamburg port partnership to facilitate hydrogen exports (OECD, 2024[3]). To minimise costs, co-locating renewable energy generation, hydrogen production and transport infrastructure remains essential (OECD, 2022_[4]).

Green infrastructure projects in MENA can support employment, skills development and technology transfer, though power supply reliability remains a constraint in parts of the region. Broadband access also remains limited. While the Medusa submarine cable will improve connectivity, further investment in high-quality fixed and mobile networks is needed.

Transport and energy networks in the Western Balkans are expanding, with increasing integration with the EU and key rail and energy interconnections with the neighbouring countries. In the transport sector, although FDI restrictiveness is already low, infrastructure gaps persist, increasing costs for businesses and reducing trade efficiency. While financial support from EU institutions remains critical, further efforts are needed to streamline regulatory burdens and improve project implementation (OECD, 2025[4]). Energy infrastructure in the region presents high regulatory barriers and reliance on coal-based energy. Initiatives under the Green Agenda for the Western Balkans are advancing decarbonisation and green energy investments (Box ‎3.8). Digital infrastructure has improved with increased investments, though high broadband costs continue to limit uptake, particularly in rural areas.

Türkiye plays a crucial role in regional connectivity, supported by advanced multimodal transport systems linking Europe and Asia. In the energy sector, Türkiye serves a central hub, with major infrastructure projects linking the regional electricity networks. FDI restrictiveness in transport and energy is relatively low, though challenges remain in digital infrastructure expansion. Ongoing efforts to improve mobile broadband and strengthen energy interconnections are set to reinforce Türkiye’s position in the UfM. The country has also effectively leveraged public–private partnerships (PPPs) to mobilise private investment in infrastructure.

UfM and the broader MENA region. Finally, while not members of the UfM, in the broader MENA region the Gulf Cooperation Council (GCC) countries, particularly Saudi Arabia and the United Arab Emirates, are emerging as key logistics hubs, due to shifting global trade patterns and changing energy demands. As trade intensifies eastward along the New Silk Route, the Gulf is leveraging its geography and capital to invest in infrastructure across the Middle East, Africa and Asia, reflecting a strategic interest to diversify its economy beyond oil. The GCC region shows increasingly strong logistics, trade and investment capabilities, with results surpassing those of both UfM average and non-EU UfM countries across many infrastructure indicators analysed in this report.

Looking forward, what policy action is needed?

Regional and bilateral infrastructure projects require the involvement of multiple stakeholders and are often sensitive to domestic and foreign policy issues. Also, infrastructure projects have strong public good characteristics and require large-scale capital mobilisation, where the distribution of costs and benefits across borders is more complex. Limited public-private partnership in energy and transport projects, combined with strong state presence in some UfM countries (particularly in MENA), may crowd out private sector financing.

The reforms within UfM countries should aim at addressing the gaps in both hard infrastructure (e.g. ports, railways) and soft infrastructure (e.g. regulatory frameworks).

Engage in regional cooperation platforms

Governments should further engage in regional cooperation platforms to foster trust, coordination and collaboration as well as policy coherence of connectivity efforts in the region, to align standards and planning across borders and strengthen the continuity of infrastructure networks and supply chains through collaborative frameworks.

The UfM formal multilateral platforms (e.g. the UfM Regional Platform on Transport Connectivity and UfM Regional Platform on Energy) play a key role in facilitating dialogue and cooperation in the Euro-Mediterranean region, a role even more important in the current geopolitical context of ongoing conflicts.

Platforms such as the Working Group on Trade and Investment of the MENA-OECD Competitiveness Programme and the new OECD Emerging Markets Forum (EMF) (Box ‎3.5) can also be instrumental in facilitating effective dialogue for policy makers across different regions, allowing them to learn and share best practices on connectivity.

Cooperation efforts could lead to well-functioning regional economic corridors that not only facilitate efficient transport across regions but also boost trade generation and economic integration. Though still not realised to their full potential, good examples include the Trans-Caspian Transport Corridor in Central Asia, the Lobito Corridor in Africa and the Bioceanic Corridor in Latin America.

Foster cross-border projects and regional infrastructure initiatives, especially between EU and North African ports, to streamline logistics, lower transshipment costs, and improve regional competitiveness. Increasing direct shipping connections will support more efficient trade within the Mediterranean and neighbouring regions.

Encourage sharing of knowledge and good practices across regions to help countries adopt successful practices and align with international standards for connectivity infrastructure. For instance, peer learning via training programmes and collaboration in the use of advanced digital tools can enhance the skills of personnel in ports and customs in MENA, fostering operational efficiencies.

UfM and the broader MENA region. Infrastructure partnerships between the EU and the GCC that also involve other non-EU UfM countries and beyond, such as the strategic India-Middle East-Europe Economic Corridor (IMEC), are helping to fill infrastructure gaps.

UfM and GCC countries should continue collaborating, especially through the EU Global Gateway, to build sustainable and high-quality connections among them, by upgrading existing infrastructure and creating green logistics and regional transport solutions. These would benefit less advanced UfM countries still lacking the necessary infrastructure to participate in, and fully benefit from, the ongoing transformation of the region.

Improve logistics and digital connectivity

Adopt National Logistics Masterplans containing quantifiable targets aligned with national and regional long-term economic development plans and visions. A well-developed logistics master plan that incorporates multimodality and a holistic view of urban, national and regional transport networks is essential for sustainable economic growth and regional integration. Such plans should aim at ensuring last-mile connectivity across various modes of transport - road, rail, maritime, and air - allowing for efficient movement of goods and people. They should ideally include investment strategies that account for both hard and soft infrastructure (enabling an integrated logistics network) and be designed with a coordinated approach in consultation with the private sector.

Invest in multi-modality of transport. Strategic investments in multimodal hubs can reduce congestion and lower logistics costs. Linking ports with inland areas through robust infrastructure will enhance last-mile transport connectivity, stimulate local economies, and facilitate smoother trade flows across different transportation modes.

Sustained investments to modernise port infrastructure, upgrade ports technologies and expand capacity are essential to improving competitiveness. By advancing infrastructure and digital governance in key ports, UfM countries can strengthen their positions within global maritime logistics networks.

Promote digital customs platforms, automation and advanced data systems to reduce delays and increase transparency. Key investments include single-window customs systems, blockchain, AI, and Big Data infrastructure to streamline operations. Adopting the EU and World Customs Organization (WCO) standardised single-window systems can significantly improve trade facilitation for countries lagging in digital customs, as it streamlines the submission of all necessary information through one entry point. Improved trade facilitation measures will bear fruit at a faster pace compared to the development of hard infrastructure, which involves long-term planning and financing strategies.

In addition, countries should seek to harmonise their regulatory frameworks to support digital services and trade. In the Western Balkans, the Systematic Electronic Exchange of Data (SEED) system, supported by the EU and the WCO, enables the automatic exchange of customs data between customs administrations. The system allows officials to easily visualise data and perform detailed analysis of exchanged records (WCO, 2024[5]) and could serve as a good practice for other countries in the region.

Enhance broadband connectivity across the Southern Mediterranean. Expanding high-speed communication infrastructure both nationally and regionally through projects such as the Medusa Submarine Cable is crucial to strengthening connectivity between the Northern and Southern Mediterranean.

Collaborate on decarbonisation and green transition

Work together to advance infrastructure projects that support decarbonisation and improve energy efficiency. As electricity demand on both sides of the Mediterranean is projected to rise in the coming years, countries across the UfM need to accelerate power efficiency to contain the growth and discourage inefficient power consumption. They should also seek to support the deployment of additional power generation capacity (including renewables) while enhancing grid infrastructure to cope with rising demand, especially in the Southern Mediterranean. At the same time, the sub-region’s electricity integration should be promoted by supporting market harmonisation and cross-border power interconnections.

Prioritise decarbonisation of the transport sector. Key strategies include accelerating electrification across all transport modes - including expanding electric vehicle charging infrastructure and smart grids, promoting a modal shift from road to rail, expanding green logistics practices such as the EcoPorts network (successful examples are Morocco's Tangier Med and Türkiye’s Asyaport and Marport) while advancing on harmonising rules and procedures with a view to implementing shared regional practices aligned with global standards.

Align skills with the demands of the green transition. Southern Mediterranean countries require a workforce trained in the development, installation and maintenance of renewable infrastructure. To address the labour market needs of the green transition, regional governments in the region should develop tailored curricula and skills development programmes within technical and vocational schools. This will require strong collaboration between industry stakeholders, educational institutions, labour associations and governments to ensure that training programmes are aligned with labour market demands and emerging industry standards.

UfM and the broader MENA region. GCC countries should be encouraged to further invest in climate adaptation and mitigation in the Mediterranean region at large, by promoting investment projects that involve collaboration with all UfM countries in addition to cooperation with the EU.

Improve investment conditions across the Southern Mediterranean

Increasing openness to FDI and promoting fair, competitive markets remain crucial for mobilising the private capital needed to fund large-scale development projects.

In the context of its programmes and initiatives in the Mediterranean, the European Union can assist partner countries in developing and implementing regulatory frameworks and policy measures that attract investment, by offering them technical support, sharing best practices and providing financial incentives. Effective policies should focus on fostering open, transparent and predictable investment conditions, while aligning with the regional aspirations for green and digital transitions.

In the energy sector in particular, implementing policies that incentivise investments in the renewables sector can enable faster deployment of renewable technologies and reduce countries’ dependence on imported fuels in power generation, especially for net energy importers. Countries should encourage a broad range of stakeholders including the financial sector, local businesses and multinational companies looking to decarbonise their operations and supply chains. The collaboration between Southern Mediterranean countries and the EU would complement and help advance current and planned electricity interconnection projects at the sub-regional and Euro-Mediterranean levels.

Leverage innovative financing instruments. The European Union can also help countries to leverage innovative financing instruments, such as offtake agreements, equity investments, and risk-sharing frameworks that help de-risk projects, improve bankability, and enhance investor confidence, thereby catalysing capital inflows into large-scale infrastructure development. Offtake agreements, which involve long-term purchase commitments between buyers and project developers, can provide revenue certainty, reduce market risk, and improve the creditworthiness of infrastructure projects. Scaling up alternative financing approaches, including blended finance and PPPs, can crowd in private sector participation while ensuring fiscal sustainability and long-term project viability for the development of resilient, regionally integrated infrastructure networks.

Lower regulatory restrictiveness to encourage investment in the growing digital economy. An environment that encourages investment in broadband infrastructure ultimately stimulates competition, improves service availability and reduces costs for digital subscriptions for businesses and individuals. Reducing regulatory barriers to deployment, while maintaining fair competition and preserving investment incentives, will further support efficient infrastructure development, ensuring expansion of network coverage and broader access to high-quality broadband services.

Increase private participation in public infrastructure to help close the significant investment gap to improve and expand transport infrastructure. Initiatives are geographically concentrated in a few UfM countries such as Egypt and Morocco in MENA and Bulgaria and Albania in Southeast Europe. PPPs should be affordable, represent value for money and be transparently treated in the budget process. Private investment in infrastructure can bring about much-needed technological know-how, cost effectiveness, and efficient and sustainable mechanisms for the transport operations within the region.

Ensure efficiency and transparency of the state-owned enterprises (SOEs) that play a significant role in managing and operating key transport infrastructure, including ports, railways and airlines, across many UfM member countries. For instance, Morocco's National Railways Office (ONCF) oversees the country's railway network, while Egypt's National Authority for Tunnels manages metro and railway projects. Similarly, Algeria's Société Nationale des Transports Ferroviaires (SNTF) operates the national railway system. These enterprises are instrumental in implementing national transport strategies and infrastructure projects (Box ‎3.3). It would be important that no single entity is responsible for building, operating and monitoring transport projects. Countries should ensure that SOEs operate efficiently, transparently and on a level playing field with private enterprises (OECD, 2024[6]).

 

Main findings	Key recommendations
Transport
Countries that establish national transport strategies aligned with industrial and development plans register significant progress in connectivity.	Adopt National Logistics Masterplans containing quantifiable targets aligned with national and regional economic development plans and visions to improve the overall logistics performance at the national and regional levels.
Surface freight transport infrastructure remains overly reliant on road networks, especially in the Western Balkans and MENA, underscoring the need for improving multimodality, particularly through rail and maritime routes.	Improve multi-modality and hinterland connectivity by increasing investments in rail and maritime infrastructure to reduce dependence on road networks.
Maritime transport is the backbone of trade in the region, with ports in the Northern Mediterranean dominating trade flows. However, Türkiye, Morocco and Egypt are emerging as important hubs in the Southern Mediterranean.	Upgrade existing ports in line with demand from shippers and shipping companies with regard to capacity, maritime access and service level. Increase the frequency of the direct shipping lines among neighbouring Mediterranean countries.
There has been an increase in cross-border projects in all modes of transport. The EU Global Gateway continues to be an important facilitator of connectivity in the Southern Mediterranean.	Pursue the implementation and completion of cross-border infrastructure projects with a focus on regional connectivity and multimodality, such as the Trans-Mediterranean Transport Network (TMN-T).
Digital infrastructure that improves connectivity for transport and trade remains largely fragmented across the UfM region. Some countries lag in implementing digital customs systems.	Simplify and harmonise custom procedures. Implement EU and WCO-standardised single window systems to enhance trade facilitation by enabling traders to submit all required information through a single, unified platform.
Timeliness and dwell times continue to pose major challenges in the region. In some countries, instead of improving, logistics performance has deteriorated, leading to longer delays and extended dwell times, which negatively affect overall efficiency.	Target investments in infrastructure development and process optimisation, integrating sustainable and green principles, to reduce bottlenecks and enhance time efficiency in transportation, particularly in non-EU UfM countries
The investment gap in the UfM transport sector remains significant, particularly in MENA where infrastructure development is underfunded and concentrated in a few key areas; in Western Balkan countries the issue is project selection, approval and implementation. This limits the expansion of multimodal networks and hinders regional connectivity and trade integration.	Facilitate private sector participation (through both FDI and PPPs as well as blended finance) in infrastructure projects to mobilise capital, promote innovation and address financing gaps, particularly in underdeveloped transport systems. Promote adoption of good practices in project implementation.
Despite noted improvements, FDI regulatory restrictions in the UfM transport sector persist.	Draw on good practices in the region, reducing FDI regulatory restrictions through simplifying and harmonising FDI regulatory frameworks.
UfM countries account for 13.4% of global transport emissions, reflecting a 40% increase since 1990, underscoring the urgent need to accelerate decarbonization efforts in the sector.	Pursue a holistic approach to multimodality and setting quantifiable reduction targets at the national level accompanied by regional cooperation that integrates urban and non-urban systems. Explore the possibility of establishing a dedicated UfM Transport Decarbonisation Taskforce to harmonise policies, foster dialogue and collaboration, and track the implementation of decarbonisation strategies in the region.
Energy
Ongoing and proposed cross-border energy projects are aiming to create mutually beneficial partnerships between EU countries and countries across the Western Balkans and MENA. Significant potential remains for expanding renewable energy production in the Southern and Eastern Mediterranean.	Enhance efforts to attract both public and private investment in renewables through implementing financial incentives (e.g. off-take agreements), fostering public- private partnerships (PPPs), and carrying out regulatory reform.
The Mediterranean region’s geopolitical and institutional landscape has been a challenge for investment in and implementation of renewable energy projects.	Tailor infrastructure projects to the institutional realities of the UfM region, especially in the pursuit of large multilateral projects. Future projects must not only prioritise mutual economic benefits but also incorporate mechanisms for mitigating political tensions and fostering cooperation among diverse stakeholders.
In the Western Balkans, multiple countries (except for Albania) continue to rely on coal and peat fuel sources to meet their energy demands.	Reduce reliance on coal, invest in renewables, and reform energy policies to align with the EU’s decarbonisation goals and support the green transition.
Electricity imports and exports across the UfM show considerable variation among sub-regions, reflecting various levels of energy reliance and different market preferences.	Strengthen regional electricity markets and infrastructure to enhance energy security, stabilise electricity prices, and improve supply predictability and intra-regional connectivity.
In the Levant, countries exhibit high renewable energy potential; however, high dependence on energy imports has created vulnerability to supply shocks.	Develop renewable infrastructure in Jordan, Israel, and the Palestinian Authority to enhance energy security.
Broadband infrastructure
Fixed broadband subscriptions have witnessed a modest increase across UfM economies, despite challenges to broadband infrastructure deployment in some Southern Mediterranean and Western Balkan countries.	Deploy new fixed broadband infrastructure, particularly in the MENA sub-region, to improve broadband connectivity. Prioritise supporting “future-proof” technologies, such as fibre, which will be better able to support the performance and capacity demands placed on the network both now and in the future.
Across the Mediterranean, active mobile broadband subscriptions have surpassed fixed broadband subscriptions, indicating greater accessibility and lower costs. However, mobile broadband subscriptions vary across the UfM and its sub-regions.	Improve the affordability and accessibility of both fixed and mobile broadband services through policies promoting market competition and broadband expansion, including in rural and underserved communities to ensure inclusive access.

I1. Cross-border projects in transport

Why this indicator?

Cross-border projects indicate the level of transport cooperation between regional actors through concrete projects in the UfM region and help to reflect on the modes of transport targeted by infrastructure development.

The selection of projects was guided by their strategic importance in advancing regional integration and the availability of relevant documentation (Table ‎3.1). Projects that include evidence of environmental compliance and demonstrate clear socio-economic benefits, such as reductions in emissions and congestion, biodiversity protection, and improved regional connectivity, have been highlighted where such information is available.

Key facts

Cross-border transport projects are helping improve connectivity and ease travel across the Mediterranean region (Table ‎3.1). However, recently completed and planned projects underscore continued dependence on road infrastructure in Western Balkans and the need to strengthen multimodal transport across borders. Two projects mentioned in the first edition of the UfM report have now been completed: the Adriatic-Ionian Motorway Project and Central Section of the Trans-Maghreb Highway.

In the Western Balkans, two projects are part of the Trans-European Transport Network (TEN-T) Mediterranean Core Network Corridor and its extension:

• The Adriatic-Ionian Motorway project, to connect Central and Northern Europe with the Balkan Peninsula (Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, Albania and Greece).

• The Vorë-Hani i Hotit railway line will rehabilitate a 120 km railway line from Vora to Hani Hotit (on the border with Montenegro) and will link Albania to the European railway network.

Also, the Klepalo border checkpoint, which links Strumyani in Bulgaria and Berovo in North Macedonia, aims to alleviate cross-border congestion and boost regional development. The Corridor 8 railway project, part of the Global Gateway initiative, will improve the rail infrastructure along TEN-T Core Network Extension to the Western Balkans. The Eastern Section (Phase III) will link the city of Kriva Palanka to the Bulgarian border and include the electrification of 88 km of track between Kumanovo and the border.

Transport projects across North Africa seek to improve sub-regional connectivity by rail, road and sea.

• New road infrastructure projects between Morocco, Mauritania, Algeria, Tunisia aim to ease travel across North Africa. Planned and completed projects include the Trans-Maghreb Highway (Algeria-Tunisia), Morocco’s Continental Highway Project (Tindouf-Zouerate Road) and a new road linking Es-Smara to Mauritania.

• The Annaba-Tunisia Railway will connect Annaba, Algeria, to Tunisia.

• The European Commission, through the Global Gateway Africa-Europe Investment Package, identified 11 strategic corridors to connect the EU with Africa through an ambitious engineering project starting with the Cairo-Khartoum-Juba-Kampala corridor, which will link Egypt with Central and East Africa and could support minerals trade (Box ‎3.1).

The Trans-Mediterranean Transport Network (TMN-T)

• The TMN-T was developed to facilitate Euro-Mediterranean cooperation and integration in the transport sector in alignment with the TEN-T. The TMN-T includes various transport modes and multimodal transport corridors to enhance connectivity and sustainable transport systems. The final map of the TMN-T has not been finalised yet, as the process of political validation is still ongoing. Potential extension of the network to inner Africa and Asia will be discussed once the TMN-T is finalised and adopted (UfM, 2023[7])

Finally, the EU and the GCC are partnering in transport projects that involve non-EU UfM countries, notably the India–Middle East–Europe Economic Corridor (IMEC). The United Arab Emirates is the lead investor country on the GCC side (Box ‎3.2).

The decarbonisation of transport is an increasingly urgent priority for the Euro-Mediterranean region. As a major source of emissions, the sector’s transformation is essential to advancing climate objectives and sustainable connectivity. Decarbonising transport is a complex, long-term undertaking that entails a fundamental rethinking of how goods and people move, calling for sustained commitments from governments, industries and citizens to develop integrated, low-carbon transport networks that enhance regional connectivity while reducing environmental impact. The financing of sustainable infrastructure is major endeavour that requires innovative financial solutions (Box ‎3.3).

What policy action is needed?

• Strengthen regional cooperation with a focus on multimodality through frameworks like the TMN-T and the Global Gateway initiative to align priorities, pool resources, and harmonise technical standards across countries. Regional coordination mechanisms should focus on reducing project delays, addressing logistical bottlenecks, and improving institutional governance for effective execution.

Further reading

Trans-European Transport Network (TEN-T) - European Commission (europa.eu) https://transport.ec.europa.eu/transport-themes/infrastructure-and-investment/trans-european-transport-network-ten-t_en

Table ‎3.1. Cross-border projects in transport

Project	Beneficiaries	Timeframe	Description	Cost
Central Section of the Trans-Maghreb Motorway Axis	Algeria-Morocco-Tunisia	Ongoing	The Central Section of the Trans-Maghreb Motorway Axis aims to boost trade and connectivity in North Africa, fostering regional development in the Maghreb. Significant segments are operational. Algeria has completed the last section, linking Drean to the Tunisian border. Tunisia has developed the motorway from the Libyan border to Bou Salem, ensuring connectivity across its eastern region. The highway project connecting Bou Salem to the Algerian border remains under preparation, with feasibility studies ongoing but no construction yet initiated.	EUR 670 million
Adriatic-Ionian Highway*	Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, Albania and Greece	Ongoing	The Adriatic-Ionian Motorway project is part of the Trans-European Transport Network (TEN-T) Mediterranean Core Network Corridor connecting Central and Northern Europe with the Balkan Peninsula. Significant parts of the corridor are under construction in. Albania. Montenegro is developing a project for section linking Bar to the Albanian border.	EUR 255 million
Halkali-Kapikule Railway Line*	Türkiye	3rd phase of construction as July 2023 (Ongoing)	The Halkalı–Kapıkule Railway Line, spanning 229 km from Istanbul to the Bulgarian border, has made significant progress. The Çerkezköy–Kapıkule section (153 km) is 84.5% complete and is expected to be finished by 2025. The Ispartakule–Çerkezköy section (67 km) 11% complete and is planned for completion by 2028. The Halkalı–Ispartakule section (9 km) is 80% complete and is also expected to be finished by 2025.	EUR 1.26 billion
Continental Highway Project (Casablanca-Rabat) Section*	Morocco	2026 (Expected completion)	The Continental Highway project, spanning 60 km, aims to alleviate traffic issues, particularly for the 2030 World Cup in Morocco.	USD 494 million
Tindouf-Zouerate Road	Algeria-Mauritania	2024 (Under Construction)	The Tindouf-Zouerate project, launched in February 2024, involves an 840 km road connecting Algeria and Mauritania, facilitated by Algerian companies.	Not specified
Es-Smara to Mauritania Route	Morocco-Mauritania	2018 (Announced) - Under construction in 2024	Morocco has commenced building a new road from Es-Smara to Mauritania, initially announced in September 2018. Despite a six-year delay, construction is now progressing, with Royal Armed Forces engineers currently preparing the site for the next construction phase.	Not specified
Trans-Maghreb Railway	Morocco-Algeria-Tunisia	2016 (Signed) – Ongoing (African Development Bank Group)	The project includes modernisation of existing railway corridors connecting Casablanca to Tunis and construction of missing railway links from Annaba (Algeria) to Jendouba (Tunisia). The main objective is to increase connectivity and boost trade in the Maghreb region, with possible expansion to Libya and Mauritania.	USD 4 billion
Klepalo Border Checkpoint	Bulgaria-North Macedonia	2021-2027 (Ongoing)	The Klepalo border checkpoint, linking Strumyani in Bulgaria and Berovo in North Macedonia, aims to alleviate cross-border traffic and boost regional economic development. Financed by the Interreg VI-A IPA Bulgaria-North Macedonia programme, implementation began in 2024.	USD 9 million
Corridor VIII Rail - Eastern Section*	Bulgaria-North Macedonia	2023-2030 (Ongoing)	The Corridor VIII project, part of the Global Gateway initiative, involves the construction of a 24 km railway line between Kriva Palanka and the Bulgarian border, as well as the electrification of 88 km of track between Kumanovo and the border. Its goal is to improve connectivity within the region (Sofia-Skopje) and with the European Union.	EUR 569 million
Vorë-Hani i Hotit railway line*	Albania	Ongoing: 2022 (Announced); 2024 (Signed)	The Vorë-Hani i Hotit railway line project involves the rehabilitation of a 120 km railway line from Vora to Hani Hotit, on the border with Montenegro. The project rests on the indicative extension of the Core TEN-T Mediterranean Corridor and will link Albania to the European railway network.	Approx. EUR 415 million
Corridor Vc Motorway*	Bosnia and Herzegovina	2014–2030 (Expected completion)	The 330km Corridor Vc motorway will connect the Adriatic port Ploče (Croatia) with Budapest (Hungary) via BiH. Some parts of the route are operational, with the aim to open the section from Sarajevo to northern border with Croatia in 2026. The construction of the southern part (Mostar-Pocitelj) and the 11 km Prenj tunnel face significant concerns about the environmental and social consequences.	EUR 4.5 billion
Corridor VIII Railway*	Albania-North Macedonia	2023 (Ongoing)	The project will rehabilitate 136 km of railway Durrës-Rrogozhinë-Lin and construct 2.8 km of railway to the North Macedonia border as part of the Pan-European Corridor VIII, which connects southern Italy to the Black Sea in Bulgaria via Albania and North Macedonia. The 33.5 km Durrës-Rrogozhinë section is planned to be completed by the end of 2028.	EUR 356.6 million
High-speed Rail Line Madrid-Casablanca	Morocco-Spain	2024 (Project preparation), 2025 (Expected start)	The high-speed train will transport passengers on the Madrid-Algeciras-Tangier-Casablanca route, through the newly constructed Gibraltar tunnel, in 5.5 hours. The project should be completed within five years as part of preparations for the 2030 World Cup.	Not specified
Jordanian Railway Network	Jordan	2013-2030 (Expected completion of the first phase)	This project will expand the Jordanian railway system by 509 km and connect it with the Mediterranean region. In the first phase, the rail link between Aqaba Port and the Shidiya phosphate mine will be built. The second phase includes connecting the South Terminal of Aqaba Port with the Syrian border. Later stages will focus on rail connections with Türkiye, Europe and the Gulf Cooperation Council.	EUR 2.11 billion

* The projects provide publicly available and disclosed information regarding their environmental compliance and projected socio-economic impacts such as reductions in emissions and congestion, preservation of biodiversity and improved connectivity.

Source: Authors’ compilation from various sources.

Box ‎3.1. Global Gateway and infrastructure development in the UfM

The European Union Global Gateway is an ambitious initiative to support global infrastructure development, with a budget of up to EUR 300 billion for the period 2021–2027. The focus is on connectivity projects in sectors such as digital, climate and energy, transport, health, education and research. Its primary objectives are to foster economic resilience, enhance global trade flows, and offer a value-driven alternative to infrastructure financing, with an emphasis on transparency, environmental sustainability, and social inclusion.

The EUR 300 billion funding is composed of several streams: EUR 135 billion through the European Fund for Sustainable Development Plus (EFSD+), including EUR 40 billion in EU guarantees (EUR 26.7 billion via the European Investment Bank and EUR 13 billion through a dedicated EFSD+ window targeting national and development finance institutions). An additional EUR 18 billion will be provided in grants under other EU external assistance programmes, and EUR 145 billion is planned through investments by EU member states' financial and development institutions. The EU funding model combines grants, soft loans, and guarantees to attract private sector investments and amplify their impact. Partner countries are required to uphold the rule of law; maintain high standards of human, social and workers' rights; and respect international norms, including intellectual property protections.

The Global Gateway includes investments in transportation networks (railways, ports, highways) to streamline the movement of goods and people, and digital infrastructure (such as fibre optic networks and data centres) to bridge the digital divide. Furthermore, projects on renewable energy plants and interconnectors aim to accelerate the green transition and bolster energy security.

The EU Global Gateways fund and support key projects in UfM countries:

• In Morocco, Global Gateway funds include the rehabilitation of the ONCF rail network with enhanced safety and flood protection, the construction of a P2X hydrogen power plant, and the extension of 37 km of the tramway network in the Rabat-Salé-Témara region to improve urban mobility.

• In Mauritania, the initiative supports the construction of a data centre in Nouakchott and a submarine cable as part of the EU-AU Data Flagship, strengthening Africa's data economy and sovereignty with secure, green infrastructure.

• In Tunisia, the funding covers the 1.7 GW renewable energy programme, including the construction of 100 km of power transmission lines. Additionally, the Elmed electricity interconnection will build a 200 km submarine cable between Italy and Tunisia, facilitating cross-border electricity trade and reducing CO2 emissions by over 200 tonnes annually.

• In Egypt, key projects include the GREGY project, which constructs a 950 km submarine cable to connect Egypt and Greece, enabling the transfer of clean energy. The modernisation of the Alexandria Area Regional Electricity Control Centre will enhance network management, while the Tanta-El Mansoura-Damietta railway upgrade involves re-signalling and the creation of a freight link to Damietta port.

• In Jordan, the initiative supports projects such as the Aqaba Electric Bus Project, which will introduce 20 electric buses and charging infrastructure, and the rehabilitation of the As Salt Sewage Treatment Plant with the construction of a biogas plant. The West Irbid Wastewater Treatment Plant will expand the wastewater network, improving sanitation in the region.

• In Israel, the Global Gateway funds the Euro-Asia Submarine Electricity Interconnection Cable, a 1 208 km cable connecting Israel, Cyprus and Greece for the transmission of renewable energy, enhancing energy security and clean energy integration.

• In Albania, the funding supports a 12.9MW floating solar power plant in Vau i Dejës, the first hybrid floating solar and hydropower plant in the Western Balkans, as well as the construction of a 21.5 km Tirana by-pass, which connects key motorways and forms part of the Adriatic-Ionian Highway.

• Finally, in the Western Balkans and Türkiye, the initiative supports critical raw materials exploration, partnerships with private investors for co-financing climate-smart solutions, and the Trans-Balkan Electricity Corridor, which involves the construction of an 84 km double circuit transmission line from Serbia to the Bosnia and Herzegovina and Montenegro borders, part of a 488 km corridor linking several countries.

Box ‎3.2. Transport partnerships between UfM and GCC countries

The India–Middle East–Europe Economic Corridor (IMEC) project, launched during a G20 meeting in September 2023, envisions the development of an innovative ship-to-rail transit network connecting India, the United Arab Emirates, Saudi Arabia, Jordan, Israel, and Europe. The project will supplement existing maritime and road transport routes and is expected to reduce transport costs, increase the speed of cargo shipment and improve route security. The Memorandum of Understanding on the IMEC outlines also plans for participating countries to facilitate the installation of infrastructure along the railway corridor - including cables for electricity and digital connectivity as well as pipelines for the export of clean hydrogen.

Another important example of transport partnerships between the EU and the United Arab Emirates is the joint investment in in the Istanbul Canal project, which aims to create a new shipping route parallel to the Bosphorus Strait. Türkiye’s efforts to modernise its infrastructure through PPPs make it an attractive destination for GCC investments focused on leveraging Türkiye’s role as a bridge between Europe and Asia.

Lastly, the United Arab Emirates continues to play a prominent role in regional infrastructure development. In Egypt, efforts are focused on the development and management of maritime and dry ports, including a landmark 50-year concession agreement signed between the Suez Canal Economic Zone and Abu Dhabi Ports Group to establish a 20-square-kilometre logistics and industrial zone east of Port Said. In Jordan, the Abu Dhabi Developmental Holding Company (ADQ) is supporting a wide-ranging agreement to advance infrastructure across sectors such as energy, technology and tourism.

Box ‎3.3. Financing sustainable infrastructure

A recent G20/OECD report highlights that integrating resilience into infrastructure planning is both a strategic and economic necessity (OECD, 2024[8]). Resilient infrastructure extends asset lifespans, enhances investment stability, and generates net-positive economic returns over time. However, multiple obstacles continue to limit the mobilisation of capital for sustainable infrastructure projects. Regulatory and policy challenges, such as inconsistent frameworks and fragmented governance structures, create uncertainty and discourage private sector participation. Unclear government commitments to sustainability policies further heighten investment risks. High upfront capital costs, particularly in renewable energy infrastructure, pose an additional obstacle, especially for developing economies. Furthermore, investors often perceive sustainable infrastructure projects as high-risk due to long payback periods, policy uncertainties, and concerns over technological obsolescence. A lack of transparency regarding climate-related risks further complicates investment decisions, as investors struggle with the complexity of these risks and the absence of standardised data and metrics (OECD, 2024[9]).

OECD work identified priority areas for scaling up finance for climate-resilient infrastructure: promoting transparency and awareness, integrating climate resilience into public funding, strengthening regulatory frameworks for privately owned infrastructure, and improving risk financing arrangements.

Greater transparency on climate-related risks helps investors incorporate physical climate risks and potential future costs into decision-making. To this aim, infrastructure standards and labels play an important role in making climate resilience more visible.

Public funding mechanisms for infrastructure may need to be adapted to facilitate the mainstreaming of climate resilience into investment planning. Key areas for reform include budget allocations, project appraisals and procurement processes. Public-private partnerships (PPPs), which involve long-term contracts where the private sector delivers and finances public infrastructure while sharing associated risks, offer an effective model for mobilising private capital in this context.

Greater attention to responsible business conduct (RBC) can help avoid and address adverse impacts of infrastructure and attract quality investments. RBC due diligence helps infrastructure companies understand which adverse impacts they risk creating and identify priority responses based on meaningful stakeholder engagement. Governments can exemplify RBC in frameworks for PPPs and state-owned enterprises. This can help bring on board foreign and domestic private investors committed to RBC, as their investments are essential resources for sustainable infrastructure development.

For well-balanced risk-sharing mechanisms to incentivise effective risk management, de-risking instruments include public guarantees and credit enhancements to improve project creditworthiness, political risk insurance to protect investors from losses due to government intervention, and blended finance approaches that combine public and private capital. Green bonds and sustainability-linked loans are increasingly being used to tie investment returns to sustainability performance indicators.

Source: OECD Guidelines for Multinational Enterprises on Responsible Business Conduct; Recommendation on the Role of Government in Promoting Responsible Business Conduct

I2. FDI regulatory restrictiveness in the transport sector

Why this indicator?

Foreign direct investment is instrumental in supporting the transition to sustainable transport, especially in countries that may lack the financial resources needed to invest in cleaner and more resilient transport infrastructure. Through regulatory openness, these regions can harness FDI to improve mobility and economic access but also contribute to long-term sustainability goals.

Key findings

The overall FDI restrictiveness of the transport sector across the UfM displays notable regional variations (Figure ‎3.1).

In recent years, MENA countries have allocated significant resources to strengthening their legal and regulatory frameworks for investment (see Chapter 2). Reforms have focused on enhancing transparency and predictability, streamlining investment-related authorisation processes, and simplifying administrative procedures to minimise discretion in the application of rules. Despite these recent improvements, some challenges remain, including restrictions in the transport sector with regard to surface, air and water (Figure ‎3.1, Figure ‎3.2, Figure ‎3.3, Figure ‎3.4). Foreign equity limits and ownership caps are still prevalent in the region (OECD, 2024[3]).

Progress in reducing restrictiveness had been limited to a few cases. Notably, Algeria, Jordan, Lebanon and the Palestinian Authority have improved their regulatory frameworks from 2018 to 2023, with Lebanon achieving the highest decrease in transport restrictiveness across air, maritime, and surface transport. Despite progress, in Algeria the level of FDI restrictiveness in the transport sector remains high.

The Western Balkans stand out for their openness to FDI with levels comparable to the EU-27 and OECD, underscoring the potential of targeted policy reforms in fostering a more open and competitive investment environment across UfM regions (OECD, 2024[2]).

FDI in the transport sector, as in other strategic network industries such as energy and telecommunication, tends to face restrictions across all countries primarily due to national interest considerations. Even within the EU, where overall FDI restrictiveness in many sectors is near zero, the transport sector - particularly air travel - maintains higher levels of regulation and control. Indeed, the EU has a framework for FDI screening meant to ensure that, while remaining open to investment, the EU is equipped to protect its essential interests, e.g. investment of third countries into strategic transport infrastructure such as ports (Investment screening - European Commission).

Among transport subsectors, air travel demonstrates the highest average restrictiveness across all sub-regions in the UfM; by contrast, surface (excluding pipelines) and water transport tend to show slightly lower levels of regulatory barriers (Figure ‎3.2, Figure ‎3.3, Figure ‎3.4).

The region’s investment gap in infrastructure persists and requires alternative financing strategies involving the increased involvement of private sector infrastructure investment.

Public-private partnerships (PPPs) serve as a critical mechanism for financing infrastructure projects, especially in nations with limited domestic capital markets. PPPs can complement traditional FDI by providing an alternative pathway for attracting foreign investment into the transport sector, facilitating development while addressing financial constraints. The World Bank, confirming the significant correlation between PPP regulatory reforms and PPP investments in particular for transport sector, indicates that there have been an important number of PPP regulatory framework reforms since June 2019 – mostly in MENA, followed by Europe and Central Asia (ECA) and Eastern and Southern Africa (AFE) (World Bank, 2024[10]).

Connectivity infrastructure in the broader MENA region

Data on restrictiveness of FDI are available for Saudi Arabia. While the trend appears positive, with reduction over time, the value remains substantially high, placing it among the highest in the UfM countries, alongside Algeria and Tunisia.

What policy action is needed?

• Improve regulatory frameworks to attract FDI: Simplify and harmonise investment regulations to create a more transparent and predictable environment for FDI in the transport sector, particularly in MENA countries.

• Establish transparent and non-discriminatory investment approval procedures to minimise bureaucratic obstacles and ensure consistent rule application.

• Promote sub-regional alignment with international regulatory best practices, supported by technical assistance and capacity-building initiatives, which could enhance effectiveness and foster progress.

• Streamline PPP schemes to foster private investment in transport infrastructure while increasing involvement of the private sector in consultation processes during the preparation of national and regional transport master plans.

Definitions

The OECD FDI Regulatory Restrictiveness Index provides data on how open or restrictive countries are towards foreign investment. The index measures statutory restrictions across four dimensions: foreign equity limitations, screening and prior approval requirements, rules for key foreign personnel, and other operational restrictions on foreign enterprises. The scores range from 0 (completely open) to 1 (completely restrictive), allowing for a comparative analysis of different countries' investment environments.

The Index includes data on FDI restrictiveness within the transport sector, which is broken up into three categories: surface (excluding pipelines), air and water transport.

Source: https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

Further reading

OECD (2024), Towards More Sustainable Investment Frameworks: Evaluating the Feasibility of Sustainable Investment Facilitation Agreements with Southern Neighbourhood Countries, OECD Publishing, Paris, https://doi.org/10.1787/411468b9-en.

Figure ‎3.1. FDI Restrictiveness, total and in the transport sector, 2023

Total, 0 = open; 1 = closed

Note: Data for Saudi Arabia are presented in light of the increasing investment flows between GCC and UfM countries. Saudi Arabia is the only GCC country for which the FDI Restrictiveness Index is currently available.

Source: OECD FDI Regulatory Restrictiveness Index, https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

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Figure ‎3.2. FDI Restrictiveness, surface transport sector, 2023

Total, 0 = open; 1 = closed

Note: For Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Latvia, Luxembourg, Netherlands, Poland, Portugal, Romania, Slovak Republic, Sweden, Türkiye, Montenegro, and Morocco, the value is 0.

Source: OECD FDI Regulatory Restrictiveness Index, https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

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Figure ‎3.3. FDI Restrictiveness, water transport sector, 2023

Total, 0 = open; 1 = closed

Note: For Czechia, Latvia, Poland, Romania, Slovak Republic, Sweden, Montenegro, and Palestinian Authority, the value is 0.

Source: OECD FDI Regulatory Restrictiveness Index, https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

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Figure ‎3.4. FDI Restrictiveness, air transport sector, 2023

Total, 0 = open; 1 = closed

Note: For Palestinian Authority the value is 0.

Source: OECD FDI Regulatory Restrictiveness Index, https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

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I3. Logistics Performance Index (LPI)

Why this indicator?

Logistics capacity not only promotes economic integration but also stimulates economic activity and growth. Across the Mediterranean, logistics capabilities vary significantly.

The Logistics Performance Index (LPI) is an important tool for assessing logistics efficiency, which is critical for trade. Research suggests that each additional day of delay at customs can reduce trade by approximately 1% (Djankov, Freund and Pham, 2006[11]) and that improvements in logistics can stimulate trade more effectively than tariff reductions alone (Gonzalez, Guasch and Serebrisky, 2008[12]).

The effects of enhanced logistics vary based on a country’s income level. Low-income countries with improved logistics infrastructure often experience accelerated trade growth, reaping gains that can outpace those of wealthier nations (World Bank, 2018[13]). For middle- and high-income countries, logistics improvements are particularly influential in boosting import volumes, enhancing their ability to respond efficiently to consumer demand (Celebi, 2019[14]).

Key findings

The logistic performance of the UfM region improved slightly, with an average score rising from 3.3 in 2018 to 3.4 in 2023, although regional and country-specific disparities persist (Figure ‎3.5).

The EU maintained strong performance, with notable progress in Latvia, Malta and Greece. Some decline was observed in Germany, Czech Republic and Hungary, which may be attributable to global supply chain disruptions as well as the war in Ukraine.

Egypt, Türkiye and Israel made significant strides, signalling a convergence with EU countries. In contrast, Algeria and Mauritania showed stagnant performance and continue to face logistics challenges, especially regarding trade-transport infrastructure. Limited data from Morocco, Lebanon, Jordan and Tunisia hinder a comprehensive understanding of the MENA region's most recent dynamics in terms of logistics developments.

The Western Balkans and Central, Eastern and South-Eastern Europe (CESEE) regions demonstrated notable progress, particularly in Bosnia-Herzegovina and North Macedonia. Albania, however, continues to face challenges, with issues most pronounced in the quality of logistics services and tracking and tracing of consignee.

Overall, non-EU UfM countries saw improvement from 2018 to 2023, but targeted interventions to elevate logistics performance are needed, particularly in timeliness and quality infrastructure. The UfM average lags behind the OECD average in LPI scores, though they remain above the global average of 3.0 (Figure ‎3.6).

Connectivity infrastructure in the broader MENA region

In 2023, the GCC countries achieved an average LPI score of 3.5, marking a notable improvement from 3.2 in 2018. This latest regional average is slightly higher than the UfM average of 3.4 and significantly higher than the non-EU UfM sub-regional average of 2.9 (Figure ‎3.5).

The United Arab Emirates continues to lead the GCC, with consistently strong LPI scores in both 2018 (4.0) and 2023 (3.96), underscoring its stable and advanced logistics performance. In 2023, the United Arab Emirates scored above 4.0 across all LPI subcomponents, except for customs and international shipments (3.7 and 3.8, respectively).

Across the six LPI subcategories, the greatest progress was observed in Quality of Logistics Services, followed by International Shipping, Customs, and Infrastructure. Timeliness showed the least progress and was the only indicator where more countries experienced setbacks than gains. This can be partly attributed to global and regional dynamics during the survey period, which led to longer dwell times and increased uncertainty. It is worth noting that Timeliness already had the highest baseline score, making further marginal improvements more challenging compared to other indicators (Figure ‎3.7, Figure ‎3.8).

Lastly, logistics performance is significantly influenced by trade facilitation and streamlined procedures, which help align transport infrastructure, customs operations, and shipping efficiency across borders - ultimately reducing connectivity gaps. This harmonisation is particularly impactful for North–South Mediterranean integration, as progress in Southern countries increasingly reflects alignment with European Union logistics standards (Box ‎3.4).

What policy action is needed?

• Prioritise upgrading of transportation networks, including roads, ports and rail systems, to address delays and improve timeliness, particularly in non-EU UfM countries.

• Encourage private sector involvement in the development and management of infrastructure to improve logistics services, increase operational efficiency and ensure cost-effective shipping solutions.

• Strengthen regional logistics services through harmonised logistics standards accompanied by well-developed national transport systems to improve overall logistics performance and further connectivity in the region. In addition, simplifying and modernising customs procedures through digital solutions, such as electronic filing systems and AI-driven analytics, can significantly increase efficiency and reduce bottlenecks.

• Promote sustainable logistic systems in the region for long-term success. Invest in green logistic practices to reduce environmental impact and mitigate the risk of disruption of supply chains that could arise from detrimental impact of climate change.

• Strengthen workforce skills through targeted training programmes and certification standards to facilitate consistent and efficient logistics operations. Regional cooperation is essential, with initiatives such as UfM-specific forums, joint benchmarking, and cross-border programmes to harmonise practices.

Data limitation and developments

Key countries of interest, including Morocco, Jordan, Tunisia and Lebanon, are absent from the latest 2023 dataset, making it impossible to draw comparisons with 2018. Additionally, the impact of regional tensions in the Eastern Mediterranean is not reflected in the LPI. The survey period (May–October 2022 for the dwell time and September-November 2022 for the LPI survey) coincided with the aftermath of the war in Ukraine as well global supply chain disruptions. These may have affected the logistical performance of Northern UfM countries located near the conflict zone or with substantial trade ties to the region prior to the crisis.

Definitions

The World Bank Logistics Performance Index (LPI) overall score reflects perceptions of a country's logistics performance based on six dimensions: i) the efficiency of the customs clearance process, ii) quality of trade- and transport-related infrastructure, iii) ease of arranging competitively priced international shipments, iv) quality of logistics services, v) ability to track and trace consignments, and vi) frequency with which shipments reach the consignee within the scheduled time. The index ranges from 1 to 5, with a higher score representing better performance. The LPI dataset features 139 countries as of 2023; for the first time, it includes shipment speed indicators derived from big data.

Source: World Bank Logistics Performance Index Surveys. http://www.worldbank.org/lpi

Further reading

https://www.cerl.fr/en/logistics-performance-index-of-the-world-bank-europe-in-the-lead/

Figure ‎3.5. Logistics Performance Index, by country

From 1=low to 5=high

Source: World Bank Logistics Performance Index, http://www.worldbank.org/lpi

Figure ‎3.6. Logistics Performance Index, by country group

From 1=low to 5=high

Source: World Bank Logistics Performance Index, http://www.worldbank.org/lpi

Figure ‎3.7. Evolution of LPI from 2018 and 2023, UfM countries

Number of countries that registered an improvement (or a deterioration) of their LPI

Source: World Bank Logistics Performance Index, http://www.worldbank.org/lpi

Figure ‎3.8. Evolution of LPI from 2018 and 2023, non-EU UfM countries

Number of countries that registered an improvement (or deterioration) of their LPI

Source: World Bank Logistics Performance Index, http://www.worldbank.org/lpi

Box ‎3.4. . Logistics and trade facilitation measures

Trade facilitation (see Chapter 1. Trade) directly impacts the efficiency and cost of moving goods across borders. Trade facilitation policies and procedures that streamline trade processes make it easier and cheaper for businesses to engage in international trade. Among the measures they assess, the OECD Trade Facilitation Indicators (TFIs) include:

• Formalities – Automation assesses how digital tools and electronic systems streamline trade procedures. Automation reduces paperwork, speeds up processing, and lowers administrative costs while enhancing transparency and minimising corruption risks. It also ensures regulatory consistency and strengthens risk management through real-time data exchange.

• External Border Agency Cooperation measures how well border agencies collaborate internationally to ensure efficient trade, security and regulatory alignment, reducing costs and strengthening risk management.

Figure ‎3.9. Trade facilitation: automation and border agency cooperation, by country

0 to 2 (best performance)

Source: OECD Trade Facilitation Indicators database.

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EU member states consistently achieve high scores in both border cooperation and automation, setting a benchmark for effective trade facilitation. This success is largely attributed to advanced digitalisation efforts, such as the EU Customs 2020 programme, which has streamlined customs procedures and enhanced communication between border agencies through systems like the Single Window. These systems facilitate the seamless sharing of information, significantly reducing the time needed for goods to clear borders. The MENA region and the Western Balkans show lower scores on similar indicators, underscoring the need for targeted interventions and capacity-building initiatives.

While countries like Morocco, Türkiye and Israel have progressed in automation, their lower performance in cooperation highlights that technological advancements alone are insufficient and strengthening international cooperation frameworks is also needed.

In the broader MENA region, GCC countries made marked progress, and the group average for both automation in trade formalities and external agency cooperation is slightly higher than the non-EU UfM average (Figure ‎3.10). The improved performance in automation reflects regional advancements in digitalisation.

Figure ‎3.10. Trade facilitation: automation and border agency cooperation, by country group

0 to 2 (best performance)

Source: OECD Trade Facilitation Indicators database.

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I4. Liner Shipping Connectivity Index

Why this indicator?

Around 80% of the volume of international trade in goods is carried by sea, and roughly two-thirds of seaborne trade by value is containerised and transported by regular liner shipping services (UNCTAD, 2024). The Liner Shipping Connectivity Index (LSCI) is meant to capture a country's integration level into global containerised liner shipping networks. It measures the number of ship calls, deployed ship capacity, number of services, maximum ship size deployed and number of companies.

Key findings

Liner shipping connectivity improved in the UfM region from 2020 to 2024, despite ongoing regional disparities (Figure ‎3.11).

The EU continues to lead the UfM region in maritime connectivity, but there has been a noticeable shift towards the southern part of Europe. While ports in Belgium, Germany and the Netherlands (such as Rotterdam, Antwerp and Hamburg) maintain high levels of connectivity, Southern European ports, particularly in Spain, Portugal and Italy, have significantly enhanced their standing. The major Spanish ports of Valencia, Algeciras, and Barcelona now rank among the best connected in Europe. This improvement is attributed to continuous investments in port capacity, digital governance (González-Cancelas et al., 2024[15]) and higher maritime transport infrastructure spending compared to the EU average.

Türkiye, Morocco and Egypt have also made substantial strides, benefiting from sustained investments in major port infrastructure. Tanger Med (Morocco), Alexandria (Egypt), Ambarli, Aliaga, Gemlik, and Mersin (Türkiye) have emerged as among the best connected in the UfM, underscoring their growing role in global trade.

These shifts are mirrored in the route-level analysis of port connectivity (Figure ‎3.12). While the Northern Route retains dominance due to its long-established infrastructure and integration into global trade networks, ports in North Africa and the West Mediterranean have gained ground, driven by strategic investments and improved competitiveness. The Eastern Mediterranean has achieved remarkable progress, particularly through developments in Türkiye and Israel, although recent geopolitical tensions in the region have left a discernible mark on the LSCI scores of all countries of the sub-region (Figure ‎3.13).

Lithuania recorded the highest percentage increase in LSCI within the same period, driven by significant investments in the Port of Klaipeda, which included deepening port channels and integrating green technologies like green hydrogen production and onshore power supply (Port of Klaipeda, 2024[16]) (EIB, 2022[17]). Romania and Bulgaria also recorded substantial improvements, with EU-funded projects promoting the enhancement of port capacities and logistics efficiencies. Latvia's progress may be linked to strategic upgrades in its port infrastructure and improved digital systems. While the war in Ukraine has affected major Baltic ports, Estonia's drop in ranking might reflect the competitive pressures from neighbouring ports which have advanced more rapidly in infrastructure and technology.

Connectivity infrastructure in the broader MENA region

From 2010 to 2024, the GCC average in the LSCI increased and eventually surpassed the UfM average, reflecting overall improvements in maritime connectivity across the GCC region. (Figure ‎3.11).

The GCC countries are seeking to position themselves as international trade hubs by capitalizing on the region’s strategic location at the intersection of three continents. To this end, they have invested heavily in port and facility development to enhance competitiveness. Current port expansion plans demonstrate a strong commitment to increasing capacity, optimizing infrastructure use, and modernizing operations through streamlined procedures and automation (UNCTAD, 2023[18]). In 2024, the number of major gold seaports in the region surpassed 25, with key ports such as Jebel Ali Port (Dubai, UAE), King Abdulaziz Port (Dammam, Saudi Arabia), and Hamad Port (Umm Al-Houl Free Economic Zone, Qatar) standing out as regional leaders in terms of capacity and global rankings (CPPI Report 2024).

Compared to other countries in the region, Bahrain and Kuwait have lower LSCI scores, as they operate fewer seaports and have relatively lower overall port capacity (Figure ‎3.13).

This evolving landscape demonstrates a gradual rebalancing of connectivity within the UfM, driven by dynamic investments and the shifting focus of maritime trade networks.

What policy action is needed?

• Ensure sustained investments in port infrastructure, focusing on upgrading facilities in line with demand from shippers and shipping companies in terms of capacity, maritime access and service level.

• Promote cross-border initiatives for infrastructure projects to streamline logistics between EU and North African ports, leveraging the existing bilateral trade success. Increasing the frequency of direct shipping lines will reduce transshipment costs and improve regional competitiveness.

• Strengthen connectivity between the Mediterranean and neighbouring regions such as GCC and Africa, both of which present significant long-term growth potential. The UfM can play a key role in supporting strategic port linkages and logistics corridors that facilitate access to emerging markets via vital trade and transit routes.

• Facilitate the green and digital transformation of ports, ensuring that technological investments not only improve efficiency but also promote environmental sustainability. This aligns with global standards for reducing emissions and improving energy efficiency in port operations.

Data limitation and developments

In 2024, the LSCI calculation was revised to adjust the impact of vessel size on the final index measurement: 100 now refers to the average score of all ports, while previously the country or port that received the highest score in the reference year of 2006 was assigned a value of 100, to serve as benchmark to assign values to other ports and countries.

It is worth noting that in the LCSI, the weighing of the underlying indicators is dominated by the effect of container ship increases, which can make the cross-country comparisons of LSCI challenging (ITF, 2024).

Definitions

The Liner Shipping Connectivity Index (LSCI) has six components: i) the number of scheduled ship calls per week in the country; ii) deployed annual capacity in twenty-foot-equivalent units (TEU): total deployed capacity offered at the country; iii) the number or regular liner shipping services from and to the country; iv) the number of liner shipping companies that provide services from and to the country; v) the size (in TEU) of the largest ship deployed on services from and to the country; and vi) the number of other countries that are connected to the country through direct liner shipping services (defined as a regular service between two countries; it may include other stops in between, but the transport of a container does not require transshipment).

The index is generated as follows: For each component, the country’s value in Q1 2023 is divided by the average value for the component, and then the average of the six components for the country is calculated. The average across components for a given country and quarter is then multiplied by 100. This results in an average LSCI of 100 in Q1 2023.

Source: https://unctadstat.unctad.org/datacentre/reportInfo/US.LSCI

Further reading

ITF (2024), Transport System Resilience: Summary and Conclusions, ITF Roundtable Reports, No. 194, OECD Publishing, Paris, https://doi.org/10.1787/d90b86ac-en.

T. Pallis, T. Notteboom and J-P. Rodrigue (2024), Regional analysis of Liner Shipping Connectivity: What does the revised LSCI reveal? UNCTAD Transport and Trade Facilitation Newsletter N°101 – First Quarter 2024, https://unctad.org/news/regional-analysis-liner-shipping-connectivity-what-does-revised-lsci-reveal

Figure ‎3.11. Liner shipping connectivity, selected country groups

2023 Q1 = 100

Note: The index for each country group is calculated by averaging the values of the member states’ indexes available in the database.

Source: https://unctadstat.unctad.org/datacentre/dataviewer/US.LSCI

Figure ‎3.12. Port LSCI scores, selected sea routes

2023 Q1 = 100

Notes: Top 40 UfM ports with the highest port LSCI as of 2024 Q3: i) Northern Range: Netherlands, Rotterdam Belgium, Antwerp, Germany, Hamburg, Bremerhaven, Poland, Gdansk, Germany, Wilhelmshaven, Poland, Gdynia, Slovenia, Koper, Sweden, Gothenburg; ii) Eastern Mediterranean: Türkiye, Ambarli, Aliaga (Nemrut), Gemlik, Mersin; Malta, Marsaxlokk; Türkiye, Izmit Korfezi, Iskenderun, Tekirdag; Israel, Ashdod, Haifa; Lebanon, Beirut; iii) North Africa: Morocco, Tanger Med; Egypt, Alexandria, Egypt, Port Said, Morocco, Casablanca, Egypt, Damietta; iv) West Mediterranean: Spain, Valencia, Algeciras, Barcelona; France, Le Havre; Greece, Piraeus; Italy, Genoa; France, Fos; Italy, Gioia Tauro; Portugal, Sines; Italy, La Spezia; Spain, Las Palmas; Italy, Salerno; France, Dunkirk; Portugal, Leixoes, Lisbon.

Source: UNCTAD Port LSCI https://unctadstat.unctad.org/datacentre/dataviewer/US.PLSCI

Figure ‎3.13. Liner Shipping Connectivity Index (LSCI), by country

2023 Q1 = 100

Source: https://unctadstat.unctad.org/datacentre/dataviewer/US.LSCI

Table ‎3.2. Port Liner Shipping Connectivity Index (LSCI), by UfM port

Ranking of major UfM ports

	2024Q1			2020Q1
	Port LSCI	UfM Ranking	World Ranking	Port LSCI	UfM Ranking	World Ranking
Netherlands, Rotterdam	956.2	1	9	1025.4	1	7
Belgium, Antwerp	893.2	2	12	955.1	2	9
Germany, Hamburg	643.0	3	20	699.6	3	15
Spain, Valencia	585.9	4	22	498.7	4	25
Morocco, Tanger Med	574.2	5	25	449.5	9	35
Spain, Algeciras	535.3	6	32	476.0	6	31
Spain, Barcelona	498.8	7	34	448.8	10	36
Greece, Piraeus	476.6	8	37	466.8	7	32
France, Le Havre	476.3	9	38	489.9	5	27
Türkiye, Ambarli	454.8	10	42	321.4	13	49
Germany, Bremerhaven	430.1	11	44	460.4	8	33
Italy, Genoa	425.2	12	46	424.8	11	38
Egypt, Alexandria	343.4	13	53	268.9	17	70
Türkiye, Aliaga (Nemrut)	336.1	14	54	232.4	24	93
Italy, Gioia Tauro	313.9	15	58	284.2	16	63
France, Fos	296.3	16	65	309.2	14	56
Türkiye, Mersin	295.0	17	68	303.4	15	60
Türkiye, Gemlik	283.2	18	72	232.9	23	91
Portugal, Sines	282.4	19	73	197.2	29	110
Malta, Marsaxlokk	279.1	20	74	265.4	18	71
Egypt, Port Said	273.0	21	76	366.7	12	45

Source: https://unctadstat.unctad.org/datacentre/dataviewer/US.PLSCI

I5. Import and export dwell time

Why this indicator?

Import and export dwell time in port or inland terminals are key indicators of logistics performance. The import dwell time depends on factors such as goods clearance, removal and logistics services and terminal performance. Similarly, the export dwell time reflects efficiency of the domestic logistics.

Some shippers use ports as temporary storage to buffer their supply chains and ensure that goods are available despite delays. High dwell times may therefore reflect strategic decisions to stabilise operations, manage uncertainty, reduce inventory costs, or match deliveries to market demand, challenging the assumption that they indicate inefficiency. But high dwell times can also create uncertainty in exports, disrupt just-in-time supply chains, and increase costs for businesses and consumers.

Countries with high variability in dwell times might benefit from targeted improvements in specific areas of their logistics and customs processes.

Key findings

In UfM countries the average consolidated export dwell time varies from 1.8 to 15 days; in landlocked countries in particular, the time can be more than 10 days (Figure ‎3.14). The average consolidated import dwell time varies from 3.3 to 25 days (Figure ‎3.15). The variation can be caused by factors such as low port capacity, documentation and customs procedures (MAERSK, 2023[19]).

Some countries, like Malta for imports and Mauritania for exports, have unusually long delays that stretch the overall waiting times. This makes their average waiting time longer than is typical for most shipments. Also, the significant variability in import dwell times for countries like Malta and Algeria suggests that the import process is unpredictable, potentially due to logistical bottlenecks or varying customs and other requirements (ITF, 2016[20]).

Across all regional groupings, import dwell times exceed export dwell times (Figure ‎3.16), due to more complex customs procedures or additional checks for imports (IMF, 2020[21]). The non-EU UfM region exhibits the highest average dwell times for imports, although with large differences across countries reflecting specific infrastructural and logistical challenges and/or regulatory complexities.

Connectivity infrastructure in the broader MENA region

The average export dwell time in GCC countries is 4.6 days, faster than the UfM average (7.9), and even more compared to non-EU UfM countries (6.5). Import processes in the GCC average 5.1 days, which is significantly shorter than in UfM countries (and non-EU UfM countries (11.2 and 12.5 days respectively). Variability in export and import processing is relatively low in the GCC region (Figure ‎3.16).

What policy action is needed?

• Streamline customs and regulatory procedures by harmonising standards and introducing risk-based inspections to expedite low-risk cargo. Investment in infrastructure is also critical, with a focus on expanding port and terminal capacity.

• Automate port operations, adopt real-time tracking technologies, mandate e-documentation to streamline processes, and implement port single window systems. Digitalisation plays a key role in reducing the dwell times. Successful models of single window systems include Morocco's PortNet, Egypt's Nafeza, and Türkiye's Liman Tek Pencere, which enable efficient electronic document exchange among stakeholders.

Data limitation and developments

In the Progress Report 2021, the median time in port (UNCTAD) was used as indicator of a port's efficiency. As data for recent years are not available for many UfM countries, dwell time data are used in this edition; the data series is publicly available only for the period from May 1 to October 31, 2022.

Definitions

Dwell time is the time spent at the same location (as defined by UNLOCODE) from container arrival to departure from this location. Dwell time applies to both ports of export or import, or inland terminal facilities.

Import dwell time is the duration from when a cargo container or goods arrive at the port or terminal until they are cleared by customs and transported to their final destinations.

Export dwell time is the duration from when a cargo container or goods arrive at the port or terminal for export until they are loaded onto a vessel for international shipment.

Consolidated import and export dwell times are the sum of dwell times at port and at intermediate inland locations after ship’s unloading (imports) or before container’s loading on ship (exports). The consolidated time reflects the average amount of time that cargo spends in ports or terminals before it is released.

Source: LPI 2023 report (worldbank.org)

Further reading

Trade Effects of the New Silk Road (wto.org); Why Dwell Time Matters (worldbank.org)

Figure ‎3.14. Export dwell time, by country

Consolidated dwell time for export (days), from May to October 2022

Source: https://lpi.worldbank.org/sites/default/files/2023-04/LPI_2023_report.pdf; https://lpi.worldbank.org/international/tracking-data

Figure ‎3.15. Import dwell time, by country

Consolidated dwell time for import (days), from May to October 2022

Source: https://lpi.worldbank.org/sites/default/files/2023-04/LPI_2023_report.pdf; https://lpi.worldbank.org/international/tracking-data

Figure ‎3.16. Export and import dwell time (mean), selected country groups

Days, from May to October 2022

Source: https://lpi.worldbank.org/sites/default/files/2023-04/LPI_2023_report.pdf; https://lpi.worldbank.org/international/tracking-data

Box ‎3.5. Developing a scoreboard to measure economic corridors’ connectivity

Economic corridors are vital for enhancing trade connectivity, fostering economic integration, and improving supply chain resilience. As global trade evolves, well-integrated corridors help reduce costs, optimise logistics, and support regional development. Given growing interest in supply-chain resilience and efficiency, economic corridors have emerged as policy-driven initiatives that combine infrastructure investments and policy co-ordination to enhance connectivity and link production zones to global markets.

The efficiency of economic corridors can be significantly enhanced through the effective use of data. Without reliable data and robust statistics, it becomes difficult to measure progress or identify areas for improvement. In the absence of concrete facts, evaluations risk being subjective and cannot effectively support evidence-based policymaking.

To address this challenge, the OECD has developed a new tool, a Connectivity Scoreboard, designed to assess the development of economic corridors’ connectivity using a comprehensive set of indicators. This approach was presented during the inaugural Emerging Markets Forum, held on 10 April 2025 in Istanbul and co-hosted by the Ministry of Trade of Türkiye and the OECD.

The preliminary scoreboard, which features over 40 indicators, represents the first systematic attempt to measure corridor connectivity. It provides standardised metrics, drawn from a range of international sources, to help policymakers monitor progress, identify bottlenecks and refine strategic priorities.

The scoreboard evaluates economic corridors across three key dimensions: Hard connectivity (physical infrastructure), Soft connectivity (policies, regulations, border efficiency, and the investment climate), and Performance and outcomes (trade and transport flows, cost-effectiveness, timelines, and reliability).

The OECD has applied the methodology to the Trans-Caspian Transport Corridor. This corridor links Central Asia and the South Caucasus to Europe via Türkiye and integrates rail, road, and maritime transport, offering an alternative to overland routes such as the Northern Corridor through Russia.

Source: Information about the connectivity scoreboard is available at the OECD EMF website.

Box ‎3.6. Decarbonisation of transport in the UfM Region

The global transport sector is responsible for around 23% of global energy-related CO2 emissions. In the absence of immediate action, this could rise to 40% by 2030 (ITF, 2023[22]). All components of the transport sector - road, rail, shipping, air, and pipeline transport - are off-track with respect to the Net Zero Emission Scenario 2030 (IEA, 2023[23]). From 1990 to 2021, the share of greenhouse gas (GHG) emissions from UfM countries in the global total decreased from 15.3% to 9.3%, primarily due to significant reductions in emissions originating from EU member states (Figure ‎3.17). While the share of UfM countries in global transport sector emissions also declined, it still accounts for 13.4% of the global total - marking a 40% increase compared to 1990 levels. The EU has not achieved marked reductions in transport-related emissions, while UfM countries in MENA, Central and Southeast Europe, and the Western Balkans, although contributing a smaller share of global transport emissions, have consistently recorded increases. This underscores the critical need for intensified efforts in UfM countries to reduce transport related GHGs.

Decarbonising the transport sector is a large-scale and long-term endeavour that demands substantial national policy changes, policy dialogue among stakeholder groups, clear targets and a reliable tracking of progress. The complexity of this task lies in the need to transform established infrastructure, adopt new technologies, and shift societal behaviours – all while ensuring economic stability and addressing environmental challenges.

Figure ‎3.17. Total and transport-related GHG emissions,1990-2021

Source: Climate Watch, Historical GHG Emissions, https://www.climatewatchdata.org/ghg-emissions?end_year=2021&start_year=1990, 2024

I6. Cross-border projects in energy

Why this indicator?

Cross-border energy projects support the development of integrated energy markets within the UfM, enhancing supply diversification and energy security. The pooling of resources for cross-border projects helps lower the costs of developing energy infrastructure and attract public and private investments.

Cross-border energy projects play a pivotal role in enhancing energy security across the UfM and increasing the connectivity of Southern and Eastern mediterranean economies.

The selection of energy projects (Table ‎3.3) focuses on cross-border initiatives that involve countries from at least two of three sub-regions: EU, MENA, and Western Balkans.

Key findings

Several ongoing and proposed projects aim to create mutually beneficial partnerships, connecting the energy grids of EU countries to countries across the Western Balkans and MENA sub-regions. New initiatives highlight the potential for Southern Mediterranean countries to play an important role in regional energy transitions, positioning themselves as future suppliers of renewable energy to the EU. However, given North Africa’s growing electricity demand, driven by climate change, economic development, and population growth, it is unlikely that the region will be in a position to export significant amounts of renewable electricity to the EU until the medium term (Box ‎3.7).

Ongoing projects between EU and MENA countries include the Elmed Interconnector and the Euro-Africa Interconnector (Table ‎3.3). The Elmed Interconnector will connect the Tunisian and Italian electricity grids, enabling energy trade and integrating Tunisia’s renewable energy supply into the European Power Network. Meanwhile, the Euro-Africa Interconnector, stretching 1,396 km with a capacity of 2 000 MW, will become the world's largest interconnector, connecting Egypt, Cyprus and Greece. In addition, a feasibility study has been conducted for a Green Hydrogen Corridor between Morocco and Italy, as one of the projects parts of Italy’s “Mattei Plan”. The "Green Corridor" project will aim to transport green hydrogen from Morocco to Trieste, Italy. This initiative could mark a significant step forward in advancing hydrogen transportation and fostering sustainable energy connections in the region.

Montenegro, Bosnia and Herzegovina and Serbia are collaborating with Italy to develop an interconnection project that will connect the Western Balkans to the EU electricity grid. The project will export renewable energy from the Western Balkans to Italy and establish Montenegro as a key regional energy hub. Additionally, Croatia and Bosnia and Herzegovina are developing a gas interconnector to enhance Bosnia's energy security, increase access to gas, and diversify gas routes.

There is significant potential to enhance renewable energy production and energy efficiency in the Southern and Eastern Mediterranean. Also, cross-border electricity trade within the North Africa represents an ongoing challenge that reflects a lack of market reforms, notably in electricity markets. This challenge by itself limits opportunities for investments, especially in renewable energy.

What policy action is needed?

• Accelerate the transition to renewable energy in the Southern Mediterranean: Southern Mediterranean countries should collaborate with EU counterparts to increase renewable energy investments by extending funding and enhancing policy frameworks and regulatory environments. Countries should also focus on promoting knowledge-sharing and technological innovation.

• Harness the renewable energy potential of North Africa: North African countries should enhance efforts to attract both public and private investment in renewables through promoting financial incentives, fostering PPPs, carrying out regulatory reforms and increasing market openness.

• Mitigate investment risks: UfM countries should promote diverse and risk-sharing financial instruments, such as offtake agreements, equity investments and blended finance, to enhance infrastructure bankability and attract private capital. Strengthening PPPs and ensuring regulatory stability can further mitigate investment risks and support sustainable, cross-border infrastructure development.

• Learn from past projects: The Mediterranean Solar Plan (MSP) underscores the difficulties of multilateral cooperation in the region, highlighting challenges including the absence of functioning energy markets and low penetration. Future projects should prioritize economic benefits, shifting regional and domestic energy needs, as well as mechanisms for fostering cooperation among diverse stakeholders.

Table ‎3.3. Cross-border projects in energy

Project	Countries	Timeframe	Description	Costs
Gazoduc	Morocco-Nigeria	2024	The Gazoduc project aims to connect Nigeria and Morocco, facilitating regional economic integration with an estimated capacity of 30 billion m³ of natural gas per year.	USD 25 billion
Green Hydrogen Corridor	Morocco-Italy	2024 - Feasibility Study Planned	The "Green Corridor" project aims to transport green hydrogen from Morocco to Trieste, Italy, representing a milestone in European hydrogen transportation.	Not specified
SoutH2 Corridor	Algeria, Tunisia, Italy, Austria, Germany	Expected 2030	The SoutH2 Corridor project is a 3,300 km dedicated hydrogen pipeline corridor. Renewable hydrogen would be largely produced in North Africa, for which the partners have collected signed letters of support from producers intending to produce c. 2,5 million tonnes per annum (mtpa) of renewable hydrogen. It would then flow north, serving the hard-to-abate demand clusters of Italy (e.g. Augusta, Taranto and northern Italy), Austria (e.g. Styria, Vienna and Linz) and Germany (e.g. Burghausen and Ingolstadt). This corridor will have a capacity of 4 million mtpa (the equivalent of 133.2 terawatt-hours (TWh) per year), which means that the SoutH2 corridor could provide 40% of the REPowerEU import target.	USD 2.5 billion
Euro-Africa Interconnector	Egypt, Cyprus, Greece	Ongoing- 2028/2029 (Expected completion of Stage 1)	The Euro-Africa Interconnector project involves developing a 2 000 MW electricity interconnector spanning 1 396 km, making it the world's largest.	USD 3 billion
EuroAsia Interconnector	Israel, Cyprus, Greece	2026	The EuroAsia Interconnector foresees the construction of a 1 200 km undersea cable from Israel to Crete via Cyprus. The interconnector is a multi-terminal, high-voltage, direct-current scheme that will connect the transmission networks of Greece, Cyprus and Israel. It will comprise three converter stations with sea-electrodes, interconnected by cables. At full deployment, the 500 kV interconnector will allow the transfer of 2 000 MW. Its total offshore length is 1 208 km (310 km from Cyprus to Israel, 898 km from Cyprus to Crete), while its onshore length is 25 km.	USD 1.6 billion
Energy Interconnection	Italy-Montenegro-Serbia-Bosnia and Herzegovina	Ongoing	The Energy Interconnection Project involves a 455 km cable line (433 km underwater) connecting Italy and Montenegro, along with a 400 kW transmission line between Serbia and Bosnia and Herzegovina. It aims to export renewable energy from the Western Balkans to Italy and establish Montenegro as a key regional energy hub.	USD 1 billion
Elmed Interconnector	Tunisia-Italy	Ongoing	The Elmed Interconnector Project is a new, 600 MW sub-sea high-voltage direct current (HVDC) link between Tunisia and Sicily, spanning 200 km. It connects the Italian and Tunisian electricity grids, facilitating electricity trading and supporting Tunisia's renewable energy integration with the European power network.	USD 600 million
Mediterranean Solar Plan	North Africa	Ongoing	The Mediterranean Solar Plan is a planned project to build a 20-gigawatt (GW) power plant to produce solar energy in North Africa by 2020. The ultimate objective is to develop renewable energy and electricity transmission capacity in the Euro-Mediterranean region.	Not specified
Gas Interconnection	Croatia – Bosnia and Herzegovina	2024 (Under Construction)	The gas interconnection between Croatia and Bosnia and Herzegovina enhances Bosnia's energy security, diversifies gas routes, and increases gasification. It is expected to have a capacity of up to 1.5 billion m3 annually.	EUR 169 million

Source: OECD compilation.

Box ‎3.7. The quest for renewable energy in MENA region

Renewable energy has become an increasingly vital source of energy for MENA countries aiming to reduce CO₂ emissions and lessen reliance on fossil fuels, notably in the electricity sector. As one of the regions most affected by climate change, MENA faces significant challenges to its energy systems, with energy demand rising due to economic development and population growth, but also to climate-related phenomena such as extreme heat. The electricity sector reflects the region’s broader energy challenges in response to the trends just mentioned. For instance, extreme heat can impact electricity transmission efficiency and damage transmission infrastructure, causing risks to electricity supply. Similarly, extreme temperatures reduce output from open-cycle gas turbines or solar photovoltaic (PV) power cells; and other phenomena, such as dust storms and wildfires, constitute hazards affecting power and, more broadly, energy systems.

Given these considerations, MENA countries will need to adapt to changing climate conditions and develop infrastructure that is both water efficient and heat resilient to ensure sustainable transitions. In recent years, Morocco and Egypt have emerged as leaders in the development of renewable electricity infrastructure in North Africa. However, with power demand projected to rise, especially for cooling and for water desalination, these countries must also adopt climate-resilient solutions to ensure stability within their power and more generally energy sectors.

Morocco aims to increase the share of renewable power capacity from 17.6% in 2020 to 52% in 2030 (Morocco Climate Change Plans) using a mix of wind, hydropower and solar sources, such as the Noor Ouarzazate Solar Complex, one of the world’s largest solar power plants. However, changes in climate and water availability will require more efforts to adapt. Morocco’s renewable electricity output is already being affected by declining precipitation levels and more frequent droughts, which decreased hydropower output from 3,631 GWh to 1,290 GWh between 2010 and 2020 (IEA, 2023). In response, the country is shifting towards less-water-intensive technologies, such as pumped hydropower storage and natural gas combined-cycle power plants.

Egypt has developed an ambitious plan to diversify its energy mix in favour of renewable sources, presented in the National Agenda for Sustainable Development Updated Vision 2030 (2023). The Benban Solar Park, in Aswan Governorate, the fourth-largest solar power plant in the world, is an example of Egypt’s collaboration with international partners to meet its goals in terms of the share of renewable energy in total energy generation. Climate change is affecting the country’s electricity supply, 84% of which comes from natural gas, a non-renewable source: higher temperatures affect electricity output from some types of gas-fired plants, which require airflow to cool turbines. As heatwaves become more frequent and intense, output from gas-fired electricity generation could decline.

Box ‎3.8. From coal to renewables: the Green Agenda for the Western Balkans

Leaders of Western Balkan economies (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia) have committed to a 2050 target for climate neutrality and environmental sustainability. Announced at a summit in Sofia, Bulgaria, in 2020, the Green Agenda for the Western Balkans provides a framework for mainstreaming climate policy and reforming the energy and transport sectors in the region. The agenda contains five main pillars: decarbonisation and climate resilience, circular economy, depollution (air, water, soil), sustainable food systems and rural areas, biodiversity protection and restoration of eco-systems. Since 2021, the European Commission has committed EUR 1.25 billion to support the Green Agenda in the form of technical assistance and investments in energy efficiency, renewable energy, and environmental management. The renewable energy pillar aims to harness the region’s solar, wind and geothermal energy potential, while expanding existing hydropower power capacity.

A key aspect of this approach is the phasing out of coal energy sources, which will impact both direct and indirect employment in the coal sector. Implemented from December 2020 to 2023, the Initiative for Coal Regions in Transition in the Western Balkans sought to address these challenges and prepare countries and communities for the transition away from coal energy sources.

Sources: Initiative for coal regions in transition in the Western Balkans and Ukraine - European Commission (europa.eu)

Box ‎3.9. Energy diversification: a nexus between UfM and GCC countries

European companies are increasingly investing in the renewable energy sector in GCC countries, attracted by their rich solar and wind resources. These investments support the GCC's strategic goal of shifting from non-renewable to renewable energy, while also driving crucial technological transfer and human capital development in the region. For example, the NEOM Project led by Saudi Arabia aims at creating a futuristic city powered by renewable energy, combining significant investments from GCC countries and partnerships with European firms for technology and infrastructure development.

On the other side, reflecting their ambition regarding energy diversification, the GCC countries have invested in renewables energy projects across Europe and MENA. For example, Saudi Arabia's Public Investment Fund is involved in several European projects, including solar plants in Spain. Egypt and Jordan are already recipients of GCC investments to finance solar and wind farms.

Furthermore, the region aims to become the world's largest hydrogen producer and a key exporter to Europe. To achieve this, Saudi Arabia, Oman and the United Arab Emirates have initiated partnerships with European companies to develop large-scale green hydrogen projects and supply green energy to Europe.

Sources: see for example https://www.sefe.eu/en/newsroom/press-releases/sefe-and-saudi-acwa-power-partner-to-deliver-200000-tonnes-of-green-hydrogen-annually-to-germany-and-europe; https://www.europarl.europa.eu/RegData/etudes/BRIE/2022/739228/EPRS_BRI%282022%29739228_EN.pdf

I7. FDI regulatory restrictiveness in the electricity sector

Why this indicator?

Foreign direct investment in the electricity sector is essential for driving infrastructure development, enhancing energy security, and facilitating knowledge transfer between countries. In the UfM region, particularly among Southern and Eastern Mediterranean countries, openness to investment in renewable energy infrastructure can empower these countries to build and integrate into regional energy markets. FDI plays a key role in making energy transitions feasible in countries and regions that lack the financial resources to develop or modernise the infrastructure necessary for sustainable energy-transition.

Key findings

FDI restrictiveness in the electricity sector varies across the UfM (Figure ‎3.18). On average, EU countries exhibit the lowest FDI restrictiveness scores for electricity generation and distribution, with complete openness to FDI observed in several countries.

The level of FDI restrictiveness for renewable and non-renewable electricity generation are identical within countries, suggesting similar regulatory environments for both energy types (Figure ‎3.19). Restrictiveness levels are highest among MENA countries, such as Lebanon, Algeria and Egypt.

For electricity distribution, Jordan has the lowest restrictions while Algeria and Israel exhibit the highest regulatory scores, indicating potential barriers to improving and expanding electricity distribution networks as well as renewables expansion (Figure ‎3.20). More specifically, distribution networks often need to be adapted for renewables due to decentralised grid structures and variability in electricity generation. The Western Balkans maintain a highly open regime regarding FDI, with low levels of restrictiveness that closely align with EU standards.

Overall, improving the conditions for FDI investment in the electricity sector can help advance progress towards energy transitions, especially in the MENA region (Box ‎3.10). A more supportive investment climate could help enhance energy security while also achieving greater economic resilience and environmental sustainability in the long term.

Connectivity infrastructure in the broader MENA region

In Saudi Arabia, the analysis reveals relatively high levels of protection for the entire electricity sector and its distribution. However, the trend for the total electricity sector decreased by more than half between 2018 and 2023.

In terms of restrictiveness on renewable electricity generation, Saudi Arabia has the second-highest value after Lebanon compared to the UfM countries.

What policy action is needed?

• Streamline regulatory frameworks to attract FDI: Simplifying investment regulations will help foster a transparent and predictable environment for FDI in the electricity sector, especially for MENA countries. To achieve this goal, the EU can offer technical assistance, share best practices, and provide financial incentives for countries to align regulatory frameworks with international best practices. This collaboration would complement and help advance current and planned electricity interconnection projects at the sub-regional and EuroMed levels.

• Promote electricity sector-specific investment incentives: Governments should develop targeted initiative, such as feed-in tariffs (FiTs), power purchase agreements (PPAs), and green bonds to attract FDI to the electricity sector. In some cases, notably in Algeria, financial sector reforms would be required in order to facilitate investment attractiveness in renewable power.

• Reform electricity subsidies to support sustainable energy markets: Phasing out inefficient fossil fuel energy subsidies will align with market rates, attract renewable energy investment, and create competitive and sustainable markets while mitigating impacts on vulnerable populations. This is especially important in the MENA region where energy subsidies can contribute to distorted energy markets.

Definitions

The OECD FDI Regulatory Restrictiveness Index provides data on how open or restrictive countries are towards foreign investment. The index measures statutory restrictions across four dimensions: foreign equity limitations, screening and prior approval requirements, rules for key foreign personnel, and other operational restrictions on foreign enterprises. The scores range from 0 (completely open) to 1 (completely restrictive), allowing for a comparative analysis of different countries' investment environments.

The Index includes data FDI restrictiveness within the electricity sector, both for electricity generation and distribution. Electricity is broken up into two categories: renewable energy (e.g. hydroelectric, biomass and solar) and non-renewable energy (i.e. coal, gas, oil, and nuclear power).

Source: https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

Figure ‎3.18. FDI Restrictiveness, total electricity sector, 2018 and 2023

0 = open; 1 = closed

Note: For Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Latvia, Luxembourg, Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, Türkiye, Albania, Montenegro, Jordan, Morocco and Tunisia the restrictiveness score is 0. Data for Saudi Arabia are presented, in light of the increasing investment flows between GCC and UfM countries. Saudi Arabia is the only GCC country for which the FDI Restrictiveness Index is currently available.

Source: OECD FDI Regulatory Restrictiveness Index, https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

Statlink

Figure ‎3.19. FDI Restrictiveness, renewable electricity generation selected UfM economies, 2023

0 = open; 1 = closed

Note: For Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Latvia, Luxembourg, Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, Türkiye, Montenegro, Morocco, Romania, Palestinian Authority and Tunisia, the restrictiveness score is 0.

Source: OECD FDI Regulatory Restrictiveness Index, https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

Statlink

Figure ‎3.20. FDI Restrictiveness, electricity distribution, selected UfM economies, 2023

0 = open; 1 = closed

Note: For Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Latvia, Luxembourg, Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, Türkiye, Montenegro, Morocco, Romania, Palestinian Authority and Tunisia, the restrictiveness score is 0.

Source: OECD FDI Regulatory Restrictiveness Index, https://www.oecd.org/en/data/indicators/fdi-restrictiveness.html

Statlink

Box ‎3.10. FDI in the renewable sector

Foreign direct investment (FDI) plays a pivotal role in accelerating energy transitions, providing financial and technological resources necessary for green growth. As countries strive to modernize their energy and electricity sectors, understanding the factors that encourage FDI in renewable energy becomes essential, particularly for countries with limited financial means to develop or upgrade the infrastructure necessary for the energy transitions.

FDI in renewable energy comes from both industry actors and external investors. From 2012 to 2021, companies engaged primarily in sectors outside of energy accounted for about 70% of cross-border merger and acquisition (M&A) deal values and 11% of announced greenfield investment in renewables (OECD, 2022). Notably, the top contributors to greenfield investments during this period were France, Germany, Italy and Spain, representing 41% of total investments. Wind and solar power emerged as the energy sources driving investment. Significantly, greenfield investment in renewable energy has been increasing since 2012, often surpassing fossil fuel investments. In 2020, greenfield investments in OECD countries peaked at USD 82 billion, amounting to 21% of total greenfield investment projects announced in OECD countries. Russia’s war on Ukraine has accelerated the need for energy diversification in terms of mix and source.

Assessing the drivers of energy FDI, the OECD finds that, in addition to typical determinants of FDI (such as market size, growth potential, regulatory restrictions to market access), climate-related policies are key factors in attracting green investment. For instance, feed-in tariffs (FITs), which incentivise investment in low-carbon technologies by offering long-term contracts that guarantee a fixed price for the generated power, are positively associated with the number of FDI projects in renewable power. This suggests that investment incentives play an important role in supporting green investment.

On the other hand, countries with stricter FDI regulations tend to attract fewer renewable energy projects, suggesting that high regulatory restrictiveness could impact the pace of the green transitions. In fact, statutory restrictions on FDI limit market reach and increase transaction costs for investors, prompting them towards markets with fewer regulatory barriers. According to the OECD’s FDI Regulatory Restrictiveness Index (RRI), a reduction of 0.01 points in regulatory restrictiveness could lead to a 1% increase in greenfield projects and a 4% rise in the number of M&A deals.

Still, the impact of these factors on investment decisions varies depending on investor origins. Firms coming from outside the energy sector appear to have less interest in energy policies when undertaking greenfield projects in renewable power but are influenced more by other conditions, such as favourable investment environments and strategic interests. More specifically, generosity of FITs or stricter carbon prices appear to have no effect on this type of investor. Instead, some non-energy firms undertake greenfield projects in renewables to power core activities in a country where they have already established operations. For instance, in October 2021, German logistics company DHL announced plans to develop a solar energy project to support its operations in Dubai. As a result, investors interested in powering their activities abroad may be less affected by countries’ climate policies.

Source: Trends, investor types and drivers of renewable energy FDI | OECD

I8. Electricity trade flows

Why this indicator?

Analysis of electricity trade flows in the UfM region provides a picture of power interconnection and interdependence among countries. As electricity demands continue to grow, especially in the MENA sub-region, diversifying electricity trade flows can help enhance electricity security and promote economic growth. The growth of renewable energy capacity across the MENA sub-region creates opportunities for greater integration of electricity markets between the North and Southern Mediterranean.

Electricity trade flows can be influenced by several factors, including policy changes, trends in demand, and adequate infrastructure, as well as geopolitical stance/direction.

Key findings

Cross-border electricity trade across the UfM shows considerable variation among sub-regions, reflecting various levels dependence and different market preferences.

Within the Western Balkans sub-region, electricity exports remained relatively stable between 2010-2019, with a small decrease in exports observed in 2022. The sub-region continues to export electricity within itself, to the EU, and with other non-UfM countries (Figure ‎3.21).

In the Levant, electricity exports are notably low compared to other UfM countries, largely due to limited natural resources in comparison with UfM countries in North Africa. The region is heavily dependent on electricity imports, with the Palestinian Authority in particular relying on Israel for most of its electricity (Figure ‎3.22). Furthermore, the reduction in electricity imports for the Levant in 2022 can be attributed to a decrease in the Palestinian Authority’s electricity imports from Israel.

In North Africa, exports fluctuated between 2010 and 2022. In 2010, most exports served interregional demand. However, between 2019 and 2022, the region diversified its export markets, supplying electricity to the EU, the Levant, and other non-UfM countries. Significantly, the level of exports to the EU witnessed a decline during this period, most probably due to increased domestic demand (Figure ‎3.23).

For imports, trade flows witnessed a drop in 2019 but recovered to 2010 levels by 2022. Import dynamics shifted significantly: by 2022, intra-North Africa imports were higher than imports from EU countries.

What policy action is needed?

• Strengthen regional infrastructure and electricity markets to boost energy security, stabilise electricity prices, and improve supply predictability.

• Diversify electricity trade flows in the Levant: Develop renewable infrastructure in Jordan, Israel and the Palestinian Authority to enhance energy security and strengthen the export market. These countries could also explore opportunities for electricity trade, leveraging Jordan’s growing renewable energy capacity, particularly for wind and solar power. However, cooperation on electricity trade between these countries is likely contingent on the start of a political peace process.

• Facilitate the green transition in the Western Balkans: Reduce reliance on coal, invest in renewables, and reform energy policies to align with EU decarbonizations goals and support the green transition.

• Leverage North Africa’s potential as an exporter: North African countries should harness their renewable potential to meet domestic demand while positioning themselves as key exporters of clean energy to Europe. However, this will require collaborative investments to scale up electricity generation from renewables.

Definitions

The electricity trade flows indicator measures electricity imports and exports of electricity across the UfM region in terms of both value (in USD) and kilowatt-hours.

Imports and exports in kilowatt-hours specify the physical flow of electricity, highlighting the level of energy interconnection and reliance among countries.

Regional breakdowns are used to analyse trade flows, providing a deeper understanding of market dynamics and integration across the UfM.

Source: UNCOMTRADE

Figure ‎3.21. Electricity imports and exports in the Western Balkans

Kilowatt-hours

Note: Data for the Western Balkans refer to 2021.

Source: UNCOMTRADE

Figure ‎3.22. Electricity imports and exports in the Levant

Kilowatt-hours

Note: Data on imports from Israel reflect the Palestinian Authority’s high reliance on electricity imports.

Source: UNCOMTRADE

Figure ‎3.23. Electricity imports and exports in North Africa

Kilowatt-hours

Source: UNCOMTRADE

I9. Electricity generation

Why this indicator?

Electricity generation provides insight into levels of electricity self-sufficiency across the UfM region, particularly in light of rising demand, especially in the Southern Mediterranean. As demands increase in response to economic conditions, social trends, environmental factors, and technological advancements, maintaining a reliable and sustainable electricity supply is pivotal.

Also, while the energy sector currently accounts for the largest share of global CO2 emissions, it is also leading the transition to net-zero emissions, with the electricity sector playing a leading role. This is largely due to the deployment of renewable energy sources, such as wind and solar, for electricity generation.

Key findings

Electricity generation levels have remained stable across the UfM in recent years. Electricity generation per capita remains limited across North Africa and the Levant, reflecting ongoing challenges in domestic resource availability and infrastructure development (Figure ‎3.24). This is consistent with electricity import data, which highlights the sub-regions’ considerable reliance on external sources to meet demand. In absolute terms, resource-rich countries such as Algeria and Egypt continue to lead in electricity production (Figure ‎3.26). However, Egypt's growing domestic electricity demand and declining natural gas production – the primary source of its electricity – have impacted its capacity to export. Jordan and the Palestinian Authority, despite lower total generation, excel in the share of renewables in their final energy consumption.

In fact, in the MENA region, where electricity demand grew by over 200% between 2000 and 2023, this reliance poses challenges to meeting the region's rapidly increasing energy needs.

Per capita energy consumption in MENA countries remains comparatively low relative to other UfM economies (Figure ‎3.25). This pattern reflects the structural complexities of their economies, characterised by a limited industrial base and an income-constrained population. In the Western Balkans, electricity generation per capita is relatively high, particularly when considering the small population size of these economies. Across the sub-region, coal remains the dominant source of electricity generation, with the notable exception of Albania. Hydropower plays a significant role in the regional energy mix, accounting for 36.5% of total renewable energy supply and 40% of overall electricity generation (Figure ‎3.27). Albania stands out as relying primarily on hydropower for electricity generation; this makes it particularly vulnerable to hydrological variations, as the economy has had difficulty sourcing sufficient energy from other sources (OECD, 2024[24]).

Connectivity infrastructure in the broader MENA region

Electricity generation in the resource-rich GCC economies is notably elevated. This reflects both the abundance of energy resources and relatively low population levels. As a result, per capita electricity generation in these countries is several multiples higher than in most UfM member states. A similar pattern is evident in the data for per capita electricity consumption, where the GCC economies present the highest level among the countries analysed.

Overall, the current trends in energy generation in the UfM, alongside the increasing share of renewables, demonstrate that higher levels of electricity generation do not typically coincide with a greater share of renewable generation. Instead, countries with limited electricity generation capacity (due to scarce fossil-fuel sources) are now turning to renewable energy sources. This transition is often bolstered by support from development finance institutions and foreign investment (e.g. the European Clean Industrial Deal and Green Agenda for the Western Balkans)

What policy action is needed?

• Accelerate the deployment of renewable energy sources for electricity generation: Boost renewable energy generation to reduce CO2 emissions and meet rising electricity demands across UfM countries.

• Develop a unified regional energy market: Create a unified regional energy market to optimize energy distribution, reduce costs and attract investment.

• Improve regional alignment: Harmonise regulatory frameworks, energy policies, grid standards and capacity mechanisms across the UfM countries.

• Improve energy equity across the UfM: Ensure affordable and reliable electricity access, especially in rural and underserved regions, to promote social inclusion and sustainable economic development.

Definitions

Electricity generation, measured in gigawatt-hours (GWh), is defined as electricity generated from fossil fuels, nuclear power plants, hydropower plants (excluding pumped storage), geothermal systems, solar panels, biofuels, wind, etc.

Renewable energy sources include solar, wind, hydropower, geothermal, ocean energy, and biomass.

Per capita electricity generation is calculated by dividing the total electricity generation by the population of the country or region.

Source: IEA and IRENA

Further reading

IEA (2024), Renewables 2024, International Energy Agency, Paris https://www.iea.org/reports/renewables-2024

Figure ‎3.24. Per capita electricity generation, 2019 and 2023

Kilowatt hours (KWh)

Note: Data for Jordan and Palestinian Authority refer to 2022.

Source: World Data dataset

Figure ‎3.25. Per capita electricity consumption, 2019 and 2023

Megawatt hours (MWh)

Note: Data for Palestinian Authority not available. Data for the GCC countries refer to 2022.

Source: International Energy Agency (IEA)

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Figure ‎3.26. Electricity generation, 2019 and 2021

Gigawatt-hours (GWh)

Source: International Energy Agency (IEA)

Figure ‎3.27. Renewable electricity generation, 2019 and 2021

Share of renewables in electricity generation, gigawatt-hours (GWh)

Source: International Energy Agency (IEA)

I10. Renewables in installed electricity capacity

Why this indicator?

A robust installed capacity is essential for ensuring a reliable electricity supply and reducing vulnerability to power shortages. This is crucial in a region exposed to geopolitical factors that can disrupt energy supply.

The share of renewables in installed electricity capacity highlights the potential of renewable energy across the UfM region. Strong renewable installed capacity supports industrial growth and attracts FDI. Small and medium-sized enterprises can benefit from stable electricity supply and prices, including transitions to more sustainable energy sources.

Key findings

Renewable energy installed capacity varies significantly across the UfM region. From 2020 to 2023, many UfM countries experienced a rise in the share of renewable electricity in their power mix (Figure ‎3.28), driven by heightened awareness of climate change and multilateral agreements promoting energy transitions both in the EU and globally. The most significant growth was seen in Lithuania, Estonia, Hungary, Poland, Lebanon, and the Palestinian Authority. These successful experiences can help other countries in the region assess how to increase renewable power capacity.

In the EU, the average share of renewables in installed electricity capacity for 2023 reached 54%. However, the share varies between around 20% to 80% of installed capacity across the Union, reflecting the unique electricity capacity mix in each EU member state as well as the continued reliance on fossil fuels.

Across the MENA sub-region, the share of renewables in installed electricity capacity varies widely, from 0.5% to 90%. This is mainly due to substantial differences in natural resource wealth, particularly for natural gas. From 2020 and 2023, Lebanon, Mauritania and the Palestinian Authority experienced the largest growth in their respective renewable shares in installed electricity capacity. Several solar and on- and offshore wind projects are helping to diversify the region’s electricity supply. The uptake of solar power in Lebanon was largely due to the country’s electricity crisis and overwhelmingly consists of off-grid rooftop solar PV, largely led by private initiative rather than the result of government policy.

In the Western Balkan sub-region, the overall share of renewables remained stable between 2020 and 2023. Notably, North Macedonia achieved an 8 percentage-point increase (IRENA, 2024[25]). The critical challenge for the sub-region will be to continue to transition away from coal and peat towards more sustainable energy sources.

Overall, current trends in renewable capacity across the UfM highlight the challenges and opportunities inherent in sustainable energy transition. While the EU leads the region, infrastructure development and innovation in Albania, Montenegro and the Palestinian Authority demonstrate that transitions are possible, and even crucial, amidst diverse economic and conflict contexts.

Yet, key clean energy technologies, fundamental for the green transition, are increasingly vulnerable to the growing frequency and intensity of extreme heat events. For instance, solar panels and wind power systems, typically designed for optimal performance at around 25°C, experience reduced efficiency during heatwaves. In the MENA sub-region, rising temperatures are placing additional strain on energy systems already struggling to meet an increasing domestic demand. In this context, the IEA has underscored the role of climate-resilient technologies in strengthening green energy production while supporting the region’s emissions reduction targets. A climate-resilient energy transition addresses three interconnected objectives: expanding clean energy, enhancing energy security, and improving climate change adaptation. Such measures help safeguard critical services, including air conditioning and healthcare, during extreme weather events (IEA, 2023).

Some countries have taken important steps in this direction. Egypt’s National Climate Change Strategy 2050 integrates climate resilience into infrastructure projects and aims to diversify power generation technologies. Similarly, Morocco has established a sectoral plan that includes a comprehensive assessment of climate impacts, the development of specialised strategies for high-risk areas, an evaluation of diversification effects on the energy mix, and a shift towards water-efficient and heat-resilient technologies.

What policy action is needed?

• Optimise the use of existing renewable electricity installed capacity: Improve renewable integration into electricity grids and enhance energy storage for more efficient energy use, storing excess energy during periods of high renewable generation and releasing it when demand peaks.

• Facilitate investments in expanding domestic renewable electricity generation capacity to help reduce dependence on external sources and enhance energy security. This will also allow countries to assume a more active role in the regional economy and energy markets.

Definitions

Renewable energy sources include solar, wind, hydropower, geothermal, ocean energy, and biomass and fuels.

Electricity installed capacity, measured in gigawatt-hours (GW), is defined as the net maximum electrical capacity installed at the year end.

Source: IEA and IRENA

Further reading

IRENA (2024), Renewable capacity statistics 2024, Abu Dhabi, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Mar/IRENA_RE_Capacity_Statistics_2024.pdf

Figure ‎3.28. Renewables in electricity installed capacity, 2020 and 2023

Share of renewables in electricity installed capacity (GW)

Source: International Renewable Energy Agency (IRENA), Renewable capacity statistics, Data

I11. Fixed broadband subscriptions

Why this indicator?

The development of fixed broadband infrastructure is essential for digital transformation and building a competitive and inclusive regional economy within the UfM. Broadband connectivity allows for efficient communication; supports digital services, applications and e-commerce; and helps create new business opportunities for companies and entrepreneurs (Box ‎3.11). By connecting businesses, governments and individuals online, broadband can help reduce trade barriers, streamline supply chains and enhance cross-broader activity. Fixed broadband can also help promote social inclusion and reduce digital divides by enabling access online to services such as education and healthcare.

Key findings

Fixed broadband subscriptions have witnessed an increase across UfM economies, despite challenges to infrastructure deployment in some Southern Mediterranean and Western Balkan countries. The OECD Broadband statistics (OECD, 2024[26]) show that (Figure ‎3.29):

• The number of fixed broadband subscriptions varies across the UfM and within its sub-regions but has generally increased since the 2021 Report, which presented data for 2018.

• Within the EU, there was an average of 37 subscriptions per 100 inhabitants in 2023, with a range of 26.1-48.6 subscriptions.

• In the Western Balkans, variations in the number subscriptions are less pronounced across countries, with a range of 22.5-32 subscriptions per 100 habitants in 2023.

• Compared to Western Balkan and EU countries, MENA countries record a lower number of fixed broadband subscriptions per 100 inhabitants on average (7.8), with significant variation across countries (0.3-14.1).

• For OECD countries, the average fixed broadband subscriptions per 100 inhabitants is 35.8, ranging from 17.6 to 47.

The percentage of fibre connections of all fixed broadband subscriptions has risen across the UfM in recent years, with significant growth in Jordan, Estonia, Slovenia, Malta and Israel (Figure 3.27). For OECD countries, this percentage rose from 28% to 42.5% between 2019 and 2023.

This increasing share of fibre enables more robust online activities, such as streaming and video calls. Additionally, greater presence of fibre-optic cables supports enhanced mobile broadband connectivity, especially as 5G technologies expand across the region. Next generation mobile networks, such as 5G, are increasingly built on fixed network infrastructure, stressing the strong complementarity between the two. It is becoming critical to deploy fibre further into fixed networks to support increases in speed and capacity to connect small cells (“network densification”). Fixed networks can be used to more effectively take on the ‘heavy lifting’ of the increasing demands on wireless networks, especially where radio spectrum is scarce.

However, the growth of fibre has been uneven across the UfM region, with slower development in the MENA and Western Balkan sub-regions (OECD, 2024[26]). Initiatives like the Medusa submarine cable aim to improve connectivity across the MENA region (Box ‎3.12). Yet, their success also depends on the effectiveness of national policies in fostering the deployment of communication network infrastructure, such as extending fibre deeper into domestic networks.

Connectivity infrastructure in the broader MENA region.

There is substantial variation in fixed broadband subscriptions among the GCC countries. The United Arab Emirates and Saudi Arabia have numbers similar to those of EU countries, while the others GCC countries have less than half of subscriptions per 100 inhabitants. Notably, Kuwait has the lowest number of fixed broadband subscriptions of all the analysed economies, alongside Mauritania.

What policy action is needed?

• Expand high-quality fixed-broadband infrastructure: Governments should deploy new broadband infrastructure (particularly in the MENA sub-region) to address regional disparities, and implement policies that encourage investment in resilient, scalable infrastructure, expand network coverage, and enhance high-capacity networks to ensure widespread availability of broadband services.

• Prioritise “future-proof” technologies for fixed networks: Governments should encourage the deployment of “future-proof” technologies, such as fibre, to meet current and future needs in terms of speed, capacity and performance.

• Improve regulatory frameworks and policies: Governments should reduce barriers to broadband deployment through effective regulations and policies that encourage infrastructure investment, while ensuring competition and preserving investment incentives. They should also promote access for all to affordable, advanced broadband services, ensuring accessibility for all, regardless of location, gender, or socio-economic status.

• Promote competitive connectivity and expand broadband infrastructure: Governments should develop non-discriminatory policies and regulations that promote end user choice for connectivity at competitive prices, to drive lower costs of communication services and improve quality of service – particularly in North African countries, where single providers continue to dominate.

Definitions

Fixed-broadband subscriptions refer to fixed subscriptions to high-speed access to the public internet (a TCP/IP connection) at downstream speeds equal to, or greater than, 256 kilobits per second (kbit/s).

This includes cable modem, DSL, fibre-to-the-home/building, other fixed (wired)-broadband subscriptions, satellite broadband and terrestrial fixed wireless broadband. The indicator is measured in number of subscriptions per 100 inhabitants.

The total is measured irrespective of the method of payment. It excludes subscriptions that have access to data communications (including the Internet) via mobile-cellular networks. It should include fixed WiMAX and any other fixed wireless technologies. It includes both residential subscriptions and subscriptions for organisations.

Source: OECD and ITU

Further reading

OECD (forthcoming, 2025), Bridging Connectivity Divides, OECD Publishing, Paris.

OECD (2022), Broadband Networks of the Future, OECD Publishing, Paris, https://doi.org/10.1787/755e2d0c-en.

OECD (2024), Financing Broadband Networks of the Future, OECD Publishing, Paris, https://doi.org/10.1787/eafc728b-en.

OECD (2024), OECD Digital Economy Outlook 2024, Volume 2, Chapter 2, OECD Publishing, Paris, https://doi.org/10.1787/3adf705b-en.

OECD (2021), Recommendation of the Council on Broadband Connectivity, OECD Legal Instruments, OECD Publishing, Paris, https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0322.

OECD (2021), Bridging Digital Divides in G20 Countries, OECD Publishing, Paris, https://doi.org/10.1787/35c1d850-en.

OECD (2021), Promoting High-Quality Broadband Networks in G20 Countries, OECD Publishing, Paris, https://doi.org/10.1787/cf0093dc-en.

International Telecommunication Union (ITU) (2023), The State of Broadband 2023, ITU and UNESCO Broadband Commission for Sustainable Development, Geneva, https://www.itu.int/broadband/.

Figure ‎3.29. Fixed broadband subscriptions, 2023

Subscriptions per 100 inhabitants

Note: For Mauritania, Morocco, Lebanon, North Macedonia, and Luxembourg, 2023 data refer to 2022.

Source: ITU. OECD (2024[26]), “Broadband statistics”, https://www.oecd.org/en/topics/broadband-statistics.html (accessed on 8 January 2025)

Figure ‎3.30. Fibre over fixed broadband

% of fibre connections in fixed broadband subscriptions

Note: Data unavailable for Palestinian Authority, Lebanon, Libya, Mauritania and Montenegro.

Source: ITU, OECD (2024[26]), “Broadband statistics”, https://www.oecd.org/en/topics/broadband-statistics.html (accessed on 8 January 2025).

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Box ‎3.11. How broadband connectivity supports infrastructure integration and trade

Developments in the ICT sector and the rollout of new fixed and mobile broadband technologies are helping to reduce costs and increase trade efficiency - both for services, which can be delivered via digital networks, and goods, which can be ordered online and delivered as parcels. Broadband connectivity reduces trade costs by providing better access to information, lowering transaction costs, improving customs and logistics efficiency, and reducing the need for business travel.

The benefits of broadband connectivity are also reflected in both domestic and international trade across countries at different economic development levels. Overall, reaping the benefits of broadband connectivity depends on countries’ access to fixed and mobile broadband infrastructure services as well as their respective regulatory environments. Differences in the regulatory environments between lower-, middle- and high-income countries can help explain differences in the impact of broadband connectivity between these economies, particularly where infrastructure is already well developed. The benefits may be more pronounced for higher-income economies (López González, Sorescu and Kaynak, 2023[27]).

According to the World Trade Organization (WTO), a 10-percentage-point increase in the number of active mobile broadband subscriptions per capita reduces trade costs by around 2%. The WTO identifies two principal channels through which digitalisation lowers costs: reducing communication and information costs and easing differences in customs procedures and regulations. The WTO studies suggest that having an open regulatory environment (as measured by a low OECD Digital Services Trade Restrictiveness Index (DSTRI) score) amplifies the effect of broadband connectivity by reducing trade costs for services. Furthermore, economies with the lowest DSTRI scores show a 60% larger reduction in trade costs from improved broadband connectivity compared to economies with median restrictiveness scores. These results are more pronounced for digitally deliverable services (80%), which eliminate the costs associated with transport.

Source: WTO, Better Together: How Digital Connectivity and Regulation Reduce Trade Costs (wto.org);

OECD Digital Services Trade Restrictiveness Index | Market openness Indicators.

Box ‎3.12. The Medusa project: addressing disparities in broadband connectivity

The Medusa submarine cable project (estimated EUR 342 billion) aims to connect the northern and southern shores of the Mediterranean, linking Portugal, Spain, Morocco, France, Algeria, Tunisia, Italy, Libya, Greece, Cyprus and Egypt. The Medusa cable is projected to be operational between 2025 and 2027, making it one of the most extensive submarine cables in the Mediterranean (see map: https://www.submarinecablemap.com/). An extension of the cable to West Africa is already being envisioned, starting with Dakar, Senegal.

Partially funded by the EU and EIB, Medusa will operate as a “carriers’ carrier”, leasing infrastructure to telecom companies which will then deliver internet and telecom services to customers. This neutral model has been strategically chosen to allow multiple telecom operators to share the same infrastructure without direct competition. The benefits of enhanced internet capacity in the different North African countries will also depend in the degree of openness to foreign investment and business environment. High costs of fixed broadband access may persist in countries with the dominance of single telecom supplier; for instance, there is a lack of market competition for fixed internet in Morocco (Telecom Maroc), Tunisia (Tunisie Telecom), and Egypt (Telecom Egypt, which controls 80.1% of the market in Egypt).

Source: EU and EIB’s support helps accelerate the MEDUSA high-speed digital connection under the Mediterranean Sea - European Commission (europa.eu); EU-Africa: Global Gateway Investment Package - European Commission (europa.eu); New Mediterranean cable set to bring 5G internet to North African countries | Middle East Eye

I12. Mobile broadband subscriptions

Why this indicator?

Mobile broadband allows consumers and businesses to access information and engage in professional and individual activities online (e.g. education, healthcare, economic and business development, public services) regardless of geographic location, wherever there is mobile network coverage.

Mobile broadband provides access to a mobile network (3G, 4G, 5G) via a device, such as a smartphone. Importantly, mobile networks depend on fixed networks, in terms of both backbone and backhaul capacity and offloading mobile traffic via Wi-Fi networks. Therefore, upgrading to future-proof fixed technologies, such as fibre, supports future performance increases in speed and capacity across all next generation technologies, including mobile networks. Mobile networks have physical infrastructure, from basic access networks (e.g. mobile towers/base stations) to next-generation networks like 5G (network densification through “small cells”, or compact cellular base stations that can be installed on streetlights, utility poles, buildings, etc.).

The number of mobile broadband subscriptions per 100 inhabitants provides a picture of mobile broadband connectivity across the region.

Key findings

UfM countries have witnessed an increase in mobile broadband subscriptions in recent years. Across the Mediterranean, active mobile broadband subscriptions surpass fixed broadband subscriptions, indicating greater accessibility of mobile broadband technology. However, mobile broadband subscriptions vary across the UfM and within its sub-regions (Figure ‎3.31).

• In 2023, EU countries averaged 120 subscriptions per 100 inhabitants, with figures ranging from 86.2 to 202, while OECD countries averaged 134, ranging from 86 to 203.5 subscriptions per 100 inhabitants (OECD, 2024[26]).

• The Western Balkans reported an average of 84.2 subscriptions per 100 habitants in the same year.

• Within the MENA region, mobile broadband subscriptions remain lower than those in the Western Balkan and EU countries, with an average number of 76 subscriptions per 100 inhabitants in 2023. However, this average masks considerable disparities within the region, with subscription rates ranging from 21.8 to 118 subscriptions.

Overall, disparities in access to broadband (measured in terms of subscriptions per 100 inhabitants) across the UfM are less pronounced for mobile broadband than for fixed broadband.

Connectivity infrastructure in the broader MENA region. GCC economies generally display high numbers of active mobile broadband subscriptions, broadly in line with EU countries – with the exception of the United Arab Emirates, which has the highest active subscription of all the analysed countries.

What policy action is needed?

• Accelerate the rollout of 5G technologies: Expand 5G coverage in the Western Balkan and MENA sub-regions to improve mobile broadband connectivity.

• Foster multi-stakeholder dialogue on broadband expansion: Engage governments, consumers, network operators, and regulatory authorities to identify areas where mobile broadband expansion is needed most.

• Expand mobile broadband access in rural and underserved areas: Prioritise mobile broadband expansion in areas where connectivity remains limited.

• Foster market competition to lower consumer costs: Promote policies that encourage market competition and incentivise telecom operators to offer affordable, high-quality mobile data plans.

• Support digital skills training: Pair broadband expansion with digital skills training, focusing on ICT skills to boost economic growth and meet changing labour market needs. The EU can support digital skills training programmes in Mediterranean Partner Countries through the EU Digital for Development Policy.

Definitions

Mobile broadband subscriptions are mobile subscriptions that advertise data speeds of 256 kbit/s or greater. The subscription must allow access to the Internet via HTTP and must have been used to make a data connection via Internet Protocol (IP) in the previous three months. Standard SMS and MMS messaging do not count as an active Internet data connection even if they are delivered via IP. This indicator is measured in number of subscriptions per 100 inhabitants (OECD definition).

Source: OECD and ITU

Further reading

OECD (2019), The Road to 5G networks, OECD Publishing, Paris, https://www.oecd.org/en/publications/2019/07/the-road-to-5g-networks_057e02f4.html

Figure ‎3.31. Active mobile-broadband subscriptions, 2018 and 2023

Subscriptions per 100 inhabitants

Note: EU countries are displayed in blue, Western Balkans in green, MENA in purple, Israel and Türkiye in yellow. For Mauritania and Lebanon data from 2022 is shown.

Source: ITU and OECD

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Box ‎3.13. Digitalisation and transport infrastructure: SNCF digital freight

In 2017, the French rail network SNCF launched the “Digital Freight Train,” in partnership with Traxens, a French company developing shipping container tracking solutions. The Digital Freight Train is based on Internet of Things (IoT) technology. IoT smart sensing solutions, which in this case are being used to improve shipping organisation and transport services, depend on a high-quality communication network to support them.

SNCF and Traxens have deployed an on-board network of digital sensors and relay boxes that deliver remote tracking and monitoring services. The sensors send data to freight stakeholders, increasing the reliability and predictability of shipments. For example, it is possible to monitor train mileage, determine geographic location in real time, and program alerts for when shipments reach strategic locations, such as loading and unloading sites. These services also help increase the safety and quality of shipments, allowing the monitoring of transport conditions, with parameters for pressure and humidity inside tank wagons. For security, various functions such as wagon load status recognition or detection of operating incidents increase rail transport safety. Additionally, sensors optimise wagon maintenance, by allowing for monitoring of mileage, shocks, and equipment wear.

Since 2020, SNCF Gares & Connections, an SNCF subsidiary, has also worked to enhance station connectivity, deploying sensors and probes that transmit data on the status of electrical panels, boarding gates, lifts, and other station technologies. 700 stations across France were equipped with this smart technology in 2024, with plans to further expand the Smart Station project.

To implement these and related initiatives, SNCF collaborates with a variety of public and private sector partners, including start-ups, industry professionals, academic institutions and local communities.

Sources: La digitalisation du ferroviaire au service des clients | Groupe SNCF (groupe-sncf.com) ; Digitalisation accélérée des gares grâce à "Smart Station" | Gares & Connexions (garesetconnexions.sncf)

References

[14] Celebi, D. (2019), “The role of logistics performance in promoting trade”, Maritime Economics & Logistics, pp. 307-323.

[11] Djankov, S., C. Freund and C. Pham (2006), “Tranding on Time”, World Bank Policy Research Working Paper.

[17] EIB (2022), Lithuania: Supporting green maritime transport: €65 million EIB backing for Port of Klaipėda, https://www.eib.org/en/press/all/2022-549-supporting-green-maritime-transport-eur65-million-eib-backing-for-port-of-klaipeda-in-lithuania.

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[1] OECD (2021), Middle East and North Africa Investment Policy Perspectives, OECD Publishing, Paris, https://doi.org/10.1787/6d84ee94-en.

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[13] World Bank (2018), Logistics Infrastructure Along the Belt and Road, https://documents1.worldbank.org/curated/en/259561545148936579/pdf/133058-MTI-Practice-Note-5-Final.pdf.