In March 2010, the Arab fund foreconomic and social development and the World Bank (MiddleEast and North Africa region) agreed to hold jointhigh-level development seminars around issues pertaining tothe Arab World. These will be held on a regular basis, every18 months or so, at the Arab fund premises in Kuwait. Thisnote analyzes micro, small, and medium-scale enterprises(MSMEs) in the Arab World. A regional approach to promotingSMEs will have the added benefit of enhancing regionalintegration among MENA countries - a region which is one ofthe least integrated in the world. Finally, microenterprises have an important development role as theystimulate economic inclusion, particularly among women andyouth. The main recommendations are divided into two areas:policies and institutions.