Purpose. This research aims to investigate and determine the factors influencing the formation of an inclusive economy in the Middle East countries and analyze the socio-economic consequences of this process, including its impact on social development, employment levels, and poverty in the region. Methodology of research. The research is based on the scientific works of scholars in the field of inclusive economy in the Middle East. General and specialized research methods, including analysis and synthesis, induction and deduction, and graphical methods, were utilized to analyze the key components of economic development, determinants of inclusive economy, and to present the research results effectively. Findings. The research identified key determinants of inclusive economy formation in the Middle East countries and analyzed its socio-economic consequences. Effective institutions, including the legal system, political structures, and regulatory mechanisms, were found to play a vital role in shaping an inclusive economy. Countries with strong and stable institutions have a better chance of developing an inclusive economy. Education and access to quality education were identified as critical factors for ensuring economic inclusiveness. A high level of education contributes to the development of a skilled workforce and increased employment. The study emphasizes the importance of developing sectors of the economy that create a high number of jobs and involve various social groups in the production processes, such as the development of small and medium-sized businesses. Effective social policies were highlighted for reducing inequality and combating poverty, as social programs and support mechanisms can contribute to inclusive economic development. The geopolitical situation, international relations, international trade, and foreign investments also significantly influence the formation of an inclusive economy and its impact on the socio-economic development of countries. Originality. This research focuses on the study of inclusive economy in the Middle East, which is a relevant and important area of research in modern economic and political science. Many studies in this field concentrate on Western countries, while this article focuses on a region with a unique socio-cultural and economic environment. A comprehensive approach to the study of inclusive economy was applied, taking into account various factors such as institutions, education, economic sectors, social policies, and external influences. This provides a more complete understanding of how inclusiveness in the economy is formed. The research also considers the impact of geopolitical factors on the development of an inclusive economy in the studied region, which is crucial for understanding the specific challenges and opportunities. Practical value. The research findings provide a basis for developing specific recommendations for Middle East countries in forming policies for an inclusive economy. These recommendations can serve as a foundation for the development and implementation of measures aimed at increasing economic inclusiveness and improving the quality of life for the population. The research results can be used by governing bodies to make informed strategic decisions regarding economic development and social policies to enhance economic inclusiveness, identify priority tasks for forming a more inclusive economy. Taking into account geopolitical aspects in the research has a significant impact on international relations and cooperation between Middle East countries and other nations, contributing to attracting investments and entrepreneurship development in the region. This creates new opportunities for economic growth and reduces unemployment through the implementation of programs and measures aimed at reducing social inequality and poverty in Middle East countries.