Abstract: This paper investigates the role of competition in the Middle East and North Africa countries for the period of 2012-
2021. The bank efficiency is measured using Stochastic Frontier Analysis. Using a sample of 177 commercial banks
and a dynamic panel data approach in GMM technique, the empirical results revealed that the higher the competition
the higher bank efficiency. This finding suggests that banks in countries with low high competition tend to perform
more efficiently. Furthermore, a negative but insignificant relationship between total assets and bank efficiency reflects
the fact that larger banks in developing countries suffer from diseconomies of scale.