Globalization involves risks and opportunities for the Arab world. Realistic knowledge of these possibilities is essential for adaptation of governance and reform of public administration to deal more effectively with the unfolding processes of globalization. To be participants rather than mere subjects, the Arab states have to recognize opportunities and limit potential negative consequences. Success requires good governance and professional public management. Public administration in the Arab world has to transform traditional methods of command and control and nepotism into a more collaborative management that relies on institutional capabilities and practicing managerial values of accountability, performance evaluation, transparency, and ethics.