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8 - Regulatory Reform to Unlock the Potential of the Arab Third Sector

Bab Amal and Poverty Alleviation in Egypt

from Part II - Capacity Building

Published online by Cambridge University Press:  27 November 2025

Clare Woodcraft
Affiliation:
University of Cambridge
Nitya Mohan Khemka
Affiliation:
PATH
Elizabeth Yee
Affiliation:
The Rockefeller Foundation
Deepali Khanna
Affiliation:
The Rockefeller Foundation

Summary

Despite the Arab world’s growing development needs, its third sector remains constrained by outdated regulatory frameworks that limit its potential. This chapter explores how effective policy reforms can unlock catalytic capital, empower civil society organizations (CSOs), and drive systemic change across the region.

Through the case study of Bab Amal in Egypt, an evidence-based poverty alleviation initiative, this chapter illustrates how regulatory inefficiencies increase costs, delay impact, and hinder large-scale social transformation. It highlights five key policy areas – streamlining registration, financial sustainability, data access, multi-sector collaboration, and evidence-based policymaking – offering a pathway for unlocking billions in untapped development capital.

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