This research used psychological well-being data on thousands of people across several countries in the Middle East and North Africa (MENA) between the period of 2000 and 2013. It begins with data on the reported well-being levels of thousands of individuals in MENA and relates these data to the macroeconomic variables in each country. The macroeconomics variables to be analysed are the unemployment rate, GDP per capita and the inflation rate. With regards to the reported well-being levels, a random sample of people who live in some selected MENA countries were interviewed each year by the World Value Survey (WVS) and are asked many self-reported questions. Two kinds of questions are used in this thesis. The first is 'all things considered, how satisfied are you weuth your life as a whole?' where answers ranked from 1 being dissatisfied till 10 being satisfied. The second question is 'Taking all things together, would you say you are 1-not at all happy, 2-not very happy, 3-quite happy or 4-very happy'. Ordered probit equations are estimated in an attempt to relate the macroeconomics conditions with individual's happiness or satisfaction by measuring the real cost of unemployment on the population and measuring the effects of GDP changes in a country on the people living in that country. A further analysis to estimate the objective well-being situation in MENA countries and compare it or supplement it to the subjective happiness approach. Building on Sen's capability approach and taking into account factors such as life expectancy, inequality and corruption levels with the individual's happiness from self-reported surveys for the same set of countries in MENA. Two independent variables are the equality opinion question and the financial satisfaction question from the WVS. The first question is: 'Incomes should be made more equal?', where 1 means you agree completely and 10 means you don't. The other question is: 'How satisfied are you with the financial situation of your household?', where '1' means you are completely dissatisfied on this scale, and '10' means you are completely satisfied. The main goal of this thesis is to arrive with a quality of life assessment of the situation in the MENA region by combining a subjective approach presented by self-reported surveys with an objective approach that includes many social indicators.