Most countries in the Middle East and North Africa (MENA) are struggling to reduce poverty and vulnerability—COVID-19 and now Russia's invasion of Ukraine are making the task even harder. Labor market exclusion is at the root of poverty and vulnerability in MENA, as work opportunities are limited, particularly for women and youth, and most workers are engaged in low productivity informal jobs. Although creating more and better jobs in MENA is mainly about revitalizing the private sector, social protection policies can play a crucial role in addressing labor market exclusion by facilitating access to productive employment, protecting workers, and providing a safety net for people who are left behind and are at risk of poverty. Social protection systems should be built to include people, but not at any cost. Protection should be provided in a financially responsible way while avoiding perverse incentives affecting work, retirement, and hiring decisions that can exacerbate labor market exclusion. Social protection policies in MENA are falling short of that benchmark. Most poor people do not receive income support, while inefficient energy and food subsidies loom large in the region. Also, most workers are not covered by pension or unemployment insurance (UI), and pension systems are unsustainable and encourage early retirement. Labor policies provide limited effective protection to workers and do little to facilitate employment. Population aging, technological change, and climate change will shape tomorrow’s economies and increase demand for social protection—social protection systems in MENA are ill-prepared to meet these challenges. Social protection systems in MENA are overdue for an upgrade to expand support to those excluded from the labor market in an efficient manner, and the ongoing crisis context is creating a unique opportunity for this. This requires investing in shock-responsive delivery systems, expanding the coverage and efficiency of social protection instruments— including income support and opportunities for the poor and social insurance and productivity-enhancing support for informal workers—and mobilizing additional resources to finance reform in a progressive manner. All of this requires political support to make the upgraded social protection system part of a renewed social contract. Although there is no single reform path, this report provides guidance on sequencing of reforms to move toward an inclusive social protection system.