Government engagement and political leadership have a key role to play in the development of capital markets in the southern and eastern Mediterranean region, according to a new report from the European Bank for Reconstruction and Development and the Arab Monetary Fund (AMF).

The report has been delivered under the Deauville Partnership as part of the international community’s response to the events of the 2011 Arab uprising. It covers markets in Egypt, Jordan, Morocco and Tunisia, where the EBRD has been investing since 2012.

The report outlines a series of 16 recommendations, of which 10 are seen as short-term, fast responses. In addition there are three medium-term and three-longer term proposals.

Since September 2012, the EBRD has invested close to €2.3 billion in more than 70 projects across the four countries, in addition to €82 million in technical assistance.