Sound corporate governance is a means of supporting the drivers of economic growth: efficient capital markets, quality investment and a favourable business climate. Achieving the economic ambitions of Middle East-North Africa (MENA) economies can be supported by ongoing improvements in corporate governance policies and practices and an alignment with international standards.

The MENA-OECD Competitiveness Programme was launched in 2016 at the request of MENA governments. It covers the following jurisdictions: Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestinian Authority, Qatar, Saudi Arabia, Tunisia, United Arab Emirates and Yemen.

Corporate governance as a means of building competitiveness and growth is an increasing priority for policy makers and the private sector across the Middle East and North Africa (MENA) region. During the last decade, MENA economies have responded to a shifting global and regional landscape by embarking on an era of transformation characterised by economic diversification and reform. In particular, citizens have called for governance reforms and an inclusive society with social and economic opportunities for all.

A strong corporate governance framework is essential for MENA economies as they strive to promote growth and build prosperous societies. The G20/OECD Principles of Corporate Governance, the OECD Guidelines on Corporate Governance of State-Owned Enterprises and OECD Gender Recommendation are important references for building such a framework. This chapter provides an overview of the main findings and policy options in the successive chapters. It first gives a snapshot of the overall economic situation in MENA, then addresses each of the chapters on access to finance and capital markets, improving transparency and disclosure, achieving gender balance in corporate leadership and state ownership in MENA.

Access to finance and capital markets is essential for growth and economic competitiveness. This chapter investigates MENA capital markets in order to identify common priorities for achieving progress, consistent with the G20/OECD Principles of Corporate Governance. It provides an overview of MENA’s capital markets and goes on to explore factors limiting access to finance, comparing the situation in the region with global trends when possible. The chapter explores how MENA’s companies use public equity financing and corporate bond markets, reviews the structure of its stock exchanges and examines the region’s corporate ownership structure, including concentrated ownership and limits on foreign investors. It concludes with a summary of key challenges to growth in the region, followed by policy options for deepening capital markets and enabling growth companies to obtain finance from them.

Corporate transparency and disclosure is a key component of the corporate governance framework needed to promote private sector development in MENA economies. This chapter presents the current legal framework for transparency and disclosure in MENA economies. It begins by describing the corporate governance landscape in the MENA region. It then reviews international standards on transparency and disclosure, including the G20/OECD Principles of Corporate Governance, and examines transparency and disclosure practices in MENA economies. The chapter looks in particular at two areas of significance in the region: disclosure of beneficial ownership and of related party transactions. It reviews the disclosure practices of some of the region’s largest companies, investigates monitoring and enforcement of disclosure rules and presents key challenges for policy makers as they seek to strengthen disclosure policies and practices. The chapter concludes with policy options, based on international good practices.

Women’s economic empowerment supported by sound corporate governance is a critical policy area that enhances economic growth and competitiveness. This chapter assesses progress, identifies challenges and proposes policy options for MENA economies to increase gender balance in corporate life, in line with the 2013 OECD Gender Recommendation and 2015 G20/OECD Principles of Corporate Governance. It highlights why greater participation by women in corporate leadership is important for the region, including its positive impact on company performance, and shows why better data is needed in order to make informed policy decisions. The chapter then explores the challenges women in MENA face in accessing corporate leadership positions and presents examples of good practices in OECD and MENA economies. It concludes with policy options. Analysis is based on publicly available information, survey responses and input from practitioners in the region.

Transparency regarding the operations and objectives of state-owned enterprises is crucial for monitoring their performance and maximising their economic and societal contributions. This chapter examines what is known about state-owned enterprises in the MENA region and points to areas where more systematic investigation could inform policy efforts. It first discusses the policy and institutional arrangements for state ownership in the region, highlights reforms underway in some MENA economies and compares the situation in the region with international trends. It then discusses the collection and public availability of quantitative information on state-owned enterprises in individual countries and compares this with international practices. The chapter concludes by proposing policy options for improving state ownership policies and practices in the region, drawing on the standards of the OECD Guidelines on Corporate Governance of State-Owned Enterprises.