Summary :

Overview

This working paper is part of the FEMISE Working Paper Series stemming from the 2024 FEMISE Annual Conference, highlighting research that addresses pressing socio-economic challenges across the Euro-Mediterranean region.

It explores the barriers to financial inclusion among youth in Middle East and North Africa (MENA) countries, with a particular focus on age, gender, and workforce participation. Drawing on a decade of data (2011–2021) across five countries—Egypt, Jordan, Lebanon, Palestine, and Tunisia—the paper provides robust empirical evidence on the structural and behavioural factors shaping access to financial services.

The study offers key insights for policymakers, financial institutions, and development actors seeking to design inclusive financial systems that better support youth empowerment, economic participation, and long-term resilience in the region.

Abstract

This paper investigates the determinants of youth financial inclusion in MENA countries, focusing on disparities related to age, gender, and labour market participation. Using pooled data from the Global Findex Database (2011, 2014, 2017, and 2021), the study applies probit regression models to assess both access to financial accounts and the use of traditional and digital financial services.

The findings reveal four key insights. First, a persistent age gap exists, with youth less likely to hold financial accounts, although their use of digital financial services increased during the COVID-19 pandemic. Second, the gender gap in financial inclusion widened during the pandemic, with young women remaining disproportionately excluded despite improvements in fintech usage. Third, financial exclusion is driven primarily by endogenous factors—such as lack of income, financial literacy, or perceived need—rather than exogenous barriers like institutional discrimination. Finally, participation in the workforce significantly enhances financial inclusion outcomes.

The paper concludes that while digital financial services offer promising pathways to inclusion, structural inequalities—particularly those affecting youth and women—remain deeply entrenched. Addressing these gaps requires integrated policy approaches combining financial inclusion strategies with labour market reforms, improved financial literacy, and targeted support for vulnerable groups.