This paper investigates a comparison between public, private and foreign banks efficiencies in the banks of Persian\nGulf region. In Persian Gulf Countries (PGC), financial sector had grown over the past years. Banking sector particularly\ngrew very rapidly and investor enjoyed high return. This study finds that whether banking sectors in PGC are efficient or\nnot. For this purpose, a sample of 103 commercial banks of Emirates, Oman, Qatar, Saudi, Kuwait, Iran and Bahrain is\ntaken from the period of 1996-2010. The data envelopment analysis (DEA) is applied to compute the efficiencies of the\nrespective banks. The result shows that the efficiency decreased in PGC�s banks after increasing the assets in banking\nsystem from year 2003. Therefore, although foreign banks don�t have any sensible change in efficiency but public and\nprivate banks decline. It cans show ownership of banking has important role in banking industries in PGC, therefore this\nstudy investigate that government ownership is less efficient than the other types. In PGC, the governments didn�t work\nefficient in toward private sectors as owner of banking system.
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