The image of a typical state-owned enterprise (SOE) in the Middle East and North Africa (MENA) is something akin to an elephant: cumbersome to maneuver and slow to adapt. This image reflects the history of SOEs in the region, established across a variety of sectors to produce everything from socks to electricity, to provide jobs to the unemployed and to furnish the society with subsidized staples. While images tend to stick, the reality appears to be gradually changing, at least in some countries of the region. Some fully or partially state-controlled enterprises in the region, particularly in the Gulf, are quite successful and this is not limited to the hydrocarbons or monopolistic sectors. What is interesting is that across the Arab world, governments are starting to pay special attention to the operation and governance of SOEs with a view to improve their productivity and competitiveness. Interest in corporate governance of
