This study, which examines the development of the institutional and regulatory framework for electricity trade in the Arab world, is one of three currently being carried out by the League of Arab States on the development of regional electricity markets. It focuses on the institutional and regulatory aspects of cross-border trade and electricity market integration among the 22 League of Arab States member countries, and between the Arab countries and potential neighboring markets. The study comprises two phases. Phase one (the main report, Volume 1) examines regional market structure and design. Phase two (Volume 2) examine principles of market regulations and legal arrangements, including a draft roadmap for a transition path towards market integration and governance documentation including drafts memorandum of understanding, general agreement, general pan Arab electricity market agreement, and regional grid code.