The Middle East and North Africa (MENA) is an extremely important region in the world and draws significant attention from the international community, primarily due to regional politics. Although there is no standard definition of what comprises MENA, for purposes of this paper it includes most countries of the Arab League. MENA states share characteristics with Eastern European countries and the former Soviet Union states in that they are in “transition,” which essentially means they have limited integration with the world economy, large public sectors, and limited private investment. MENA is also an important region for other reasons including its geographic location and its vast natural resources. The region consists of traditionally closed economies with substantial state intervention. In the 1980s, MENA states began a process of reform to cope with economic pressures and to deal with future challenges. While still facing significant hurdles in the path to economic reform this process of reform must carry on into the future if the region hopes to address future economic demands, which include increasing the labor force, diversifying from the hydrocarbon sector, and competing in the global economy.