In the Arab States region, the COVID-19 pandemic has exposed many of the fragilities of the governance systems and their constrained capacities for responding to public needs, which is worsening already pre-existing negative trends such as deteriorating public trust and falling levels of institutional legitimacy and accountability. This policy brief presents key trends on SDG 16 on peace, justice and inclusive institutions in the region and assesses how a lack of responsiveness of government institutions is weakening the social contract and public trust; how uneven effects of COVID-19 measures have tightened restrictions on women, youth and persons with disabilities; and how concern about the increasing centralization of decision-making is growing. The brief highlights that there is a need to improve state responsiveness for a stronger social contract, to build more transparent and accountable institutions, and to better ensure inclusiveness in the governance system so as to leave no one behind and to build forward better from the pandemic.