Trade, investment and industrial policies are at the heart of economic transformation and of job-rich strategies in developing countries. In the Southern Mediterranean Countries, despite the many reforms adopted over the past decades, structural transformation remains slow and the impact of these policies on job creation remains low, especially for women and youth. This thematic report examines the evolution of these policies and their impact on economic transformation, diversification of exports and the labour market, with a focus on youth and women, and on small and medium-sized enterprises in the region. The report also provides an analysis of future trends that are expected to impact the labour market in the region.