SOEs have a substantial global footprint, though their scale, sectoral presence and importance vary across economies. Based on the OECD Global SOE Dataset, this chapter maps the global SOE landscape and shows recent trends among non-financial SOEs. It examines their performance, financing structures and investment patterns, while also comparing SOEs with private companies to assess their relative market position, financial performance and contribution to economic activity.
Ownership and Governance of State‑Owned Enterprises 2026
Abstract
State‑owned enterprises (SOEs) play a key role in many economies, with their global footprint expanding significantly over the past decade. Between 2013 and 2024, both the number of SOEs and the value of their total assets roughly doubled in real terms, underscoring the growing scale and importance of the sector and the need to better understand the evolving role of SOEs in the global economy. This chapter reviews the global SOE landscape, examining trends in the size and sector composition, performance, financing structure and investment of SOEs, and their economic significance across regions and over time. The chapter also benchmarks SOEs against privately held companies along several dimensions which can give important insights into SOEs’ broader implications for productivity, competitiveness and growth. Drawing on the OECD Global State‑Owned Enterprises Dataset, the analysis highlights several key findings:
SOEs represent a significant and growing component of the global economy. The Global SOE Dataset covers 33 834 financial and non-financial SOEs worldwide, with combined assets of USD 141 trillion, equivalent to 126% of global GDP, and total employment of 43 million people in 2024. Between 2013 and 2024, the number of large non-financial SOEs increased from 9 584 to 26 068, while their assets nearly doubled in real terms.
Emerging markets account for the majority of SOEs and an even larger share of their economic footprint. In 2024, 62% of financial SOEs and 72% of non-financial SOEs were domiciled in emerging markets, accounting for more than 80% of SOE employment and assets. The People’s Republic of China (hereafter “China”) has the largest SOE sector, accounting for 56% of non-financial SOEs globally, 61% of their employment and 62% of their assets. Across most regions, mining, utilities and manufacturing account for the largest share of SOE sales.
SOE profitability has improved in Africa and Latin America and the Caribbean (LAC) but weakened in China. SOEs in Africa and LAC recorded the strongest improvements in performance, accompanied by declines in the share of loss-making firms, although much of this was driven by mining companies. By contrast, profitability weakened in China, alongside a rise in loss-making firms, while Asia excluding China showed mixed trends. Compared with non-SOEs across six industries (construction, manufacturing, mining, real estate, services and wholesale trade), SOEs remain less profitable overall, with median ROE averaging 4.7% between 2013 and 2024, compared with 6.4% for non-SOEs. Mining is a notable exception, with SOEs consistently outperforming non-SOEs.
SOEs have become more leveraged and rely heavily on non-debt liabilities. Leverage increased across all regions except China, with particularly strong increases in Africa and LAC, while more than a third of SOEs in Asia excluding China and other jurisdictions recorded leverage ratios above 75% of assets. Non-debt liabilities remained the largest component of SOE balance sheets in most regions, pointing to differences in financing structures and access to formal debt markets. Compared with non-SOEs across six industries (see earlier bullet), SOEs are also more leveraged overall, with median leverage averaging around 62% of assets compared with 58% for non-SOEs. They rely more heavily on non-debt liabilities, while Europe is the only region where financial debt accounts for a larger share of SOE liabilities than for non-SOEs.
Chinese SOEs lead in research and development (R&D) intensity, though SOEs generally invest less compared to non-SOEs. Chinese SOEs recorded the highest R&D intensity between 2013 and 2023, while manufacturing remained the largest contributor to global SOE R&D spending. Many SOEs, however, continue to invest less than the depreciation of their existing assets, potentially eroding productive capacity. China broadly maintained its capital base even among lower-investment SOEs, while Europe recorded the highest net investment levels. Compared with non-SOEs across the six industries observed (see earlier bullet), SOEs generally invest less in R&D and fixed assets. China is the main exception, with Chinese SOEs’ R&D intensity twice that of non-SOEs, while SOEs also outperform in construction and mining. In most other industries, non-SOEs invest more and exhibit stronger capital accumulation, with the largest investment gap observed in Europe.
State‑owned enterprises (SOEs) are important actors in the global economy, with a significant presence across countries and sectors. They operate in strategically important sectors, including energy, transport, finance, telecommunications and infrastructure, where their activities can have far-reaching implications for economic development, productivity and the delivery of essential goods and services. Given the prominent role they play in many markets, the governance, performance and investment decisions of SOEs can influence public finances, competition and broader economic outcomes. This chapter provides an overview of the scale, sectoral composition and geographical distribution of SOEs worldwide to help assess their role in the global economy and inform effective ownership and corporate governance policies.
Based on the OECD Global State‑Owned Enterprises Dataset, in 2024 there were 33 834 large SOEs worldwide, employing around 43 million people and holding combined assets of nearly USD 141 trillion.1 Non-financial SOEs accounted for 77% of all SOEs by number, compared with 23% for financial SOEs, but their relative importance differs considerably in terms of employment and assets. Non-financial SOEs employ 33.7 million people, compared with 9.7 million in financial SOEs. By contrast, financial SOEs hold USD 102 trillion in assets, compared with USD 38.9 trillion for non-financial SOEs. As a result, financial SOEs account for less than one‑third of the employment of non-financial SOEs, while holding 2.6 times as many assets (Figure 1.1) (Arikan, Medina and Ruiz Casas, 2026[1]).
The geographical distribution of SOEs is uneven, with China accounting for a particularly large share. In 2024, China had 17 588 SOEs, more than the combined number in Europe, Asia excluding China, Latin America and the Caribbean (LAC) and Africa. Europe had the second-largest number, with 9 290 SOEs, followed by Asia excluding China (3 279), other jurisdictions (2 795), LAC (490) and Africa (392). Overall, emerging markets account for around 70% of SOEs worldwide by number and an even larger share of SOE employment (83%) and assets (80%).
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
In terms of concentration, the top three countries in Europe and LAC account for roughly similar shares of SOEs, employment and assets. By contrast, there is more divergence between the concentration of SOEs and their economic weight in other regions (Figure 1.2). In Africa, the top three countries, Libya, Morocco and South Africa, account for 54% of SOEs and 70% of employment, but only 42% of assets, indicating that SOEs in these economies are comparatively more labour-intensive, while a relatively larger share of assets is held elsewhere in the region. A similar pattern is observed in the “Others” category, where the top three countries account for a larger share of employment than of either SOEs or assets. In “Others”, the top three countries account for 61% of firms but 79% of employment and 59% of assets. Europe is the least concentrated region by number of SOEs and employment, with Germany, France and Italy constituting 43% of SOEs, 47% of employment and 48% of assets. In LAC, Argentina, Brazil and Colombia, the three countries with the largest number of SOEs represent 72% of all SOEs in the region, a similar 73% of regional SOE employment and a slightly lower 69% of assets.
Note: The concentration ratio measures the share of the regional total held by the top three countries by number of SOEs.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
Given the distinct nature of financial institutions and the limited comparability of their balance sheets and financial indicators with those of non-financial firms, this section focusses on non-financial SOEs.
The number and total assets of non-financial SOEs have increased substantially (Figure 1.3). Globally, the number of large non-financial SOEs increased from 9 584 in 2013 to 26 068 in 2024, while their assets almost doubled in real terms. The growth in the total number of SOEs has been more pronounced than that of large non-financial companies globally. SOEs’ share in the total number of large, non-financial companies has more than doubled over the same period, while their share in total assets remained broadly unchanged. The growth of SOEs has been driven predominantly by China – while it already accounted for the largest share of non-financial SOE assets in 2013 (34%), its share increased by nearly 30 percentage points (p.p.), reaching 62% in 2024. Europe, by contrast, has seen a decline in its share of total assets from 32% to 17%. The shares of Asia excluding China, LAC, Africa and other regions have remained comparatively small. These changes may partly reflect the expansion of sample coverage over time and variation in regional coverage, rather than solely changes in the composition of the SOE sector (Arikan, Medina and Ruiz Casas, 2026[1]).
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
SOEs’ sectoral contribution has also evolved over time. Across regions, mining, utilities and manufacturing continue to account for a large share of SOE sales, but their relative importance has changed (Figure 1.4).
In Africa, mining’s share of SOE sales fell sharply from 83% in 2013 to 41% in 2024, reflecting the absence of some large mining companies from the 2024 sample and a sales contraction due to disruptions to oil production in North Africa (U.S. Energy Information Administration (EIA), 2024[2]). At the same time, the shares of utilities and manufacturing increased from 8% to 24% and from 5% to 16%, respectively.
In Asia excluding China, the sectoral composition remained comparatively stable. Utilities increased their share of sales from 31% to 38%, while manufacturing and mining declined from 37% to 29% and from 25% to 18%, respectively. The rise in utilities stems largely from the inclusion of long-established infrastructure operators not previously captured, state‑linked groups expanding internationally and firms whose inclusion reflects changes in ownership (PSA International, 2026[3]; Kim, 2022[4]). Wholesale trade also contributed to the increase in the “Other industries” category, from 8% to 15%.
China shows a distinct pattern. Manufacturing remained the largest industry by SOE sales, although its share declined from 40% to 34%, while construction reached 14% in 2024. The latter is consistent with the prominent role of Chinese SOEs in infrastructure and construction, supported by public investment and activity related to the Belt and Road Initiative (BRI) (Mordor Intelligence, 2025[5]). BRI-related projects are often executed by Chinese SOEs (Patel, 2025[6]). Mining dropped out of China’s top three industries and is now included within the "Other industries" category, which, together with wholesale trade, helps explain the rise of "Other industries".
In Europe, utilities further increased their dominant share of SOE sales, from 55% to 65%, while manufacturing rose from 16% to 21%. Mining, which accounted for 21% in 2013, dropped out of the top three, although this largely reflects changes in the classification of major firms in the sample. In LAC, mining remained the largest industry despite its share declining from 73% to 55%, while utilities increased from 11% to 23% and manufacturing from 9% to 13%.
Overall, these shifts reflect a combination of changes in SOE activity, sample composition, database coverage and state ownership, and should therefore not be interpreted solely as changes in sectoral economic performance.
Note: The figure shows non-financial SOEs. Data for “Others” should be interpreted with caution due to low data coverage for sales.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
In addition to measuring the commercial scale of the SOE sector, analysing SOE employment provides insights into its broader economic and social footprint, including the importance of SOEs as employers and their contribution to national labour markets. SOEs’ contribution to employment varies significantly across countries (Figure 1.5). Non-financial SOE employment accounts for over 16% of total domestic employment in the highest-ranked country, compared with around 3% at the lower end of the top 20. Singapore and Qatar stand out, with shares of 16% and 12%, respectively. In Singapore, this partly reflects a relatively small domestic workforce and the presence in Temasek’s portfolio of large state‑linked companies in aviation, port operations and utilities (U.S. Department of State, 2024[7]). In Qatar, the high share is driven by a small number of large, labour-intensive SOEs, notably Qatar Airways, which employs staff globally (Qatar Airways, 2026[8]). SOE employment may include employees of foreign subsidiaries, while total employment in the denominator is measured domestically based on formal employment.
Employment contribution by SOEs is more uniform in the remaining top 20 countries. In the next five countries (Luxembourg, France, Norway, China and the United Arab Emirates), SOEs account for 6‑7% of domestic employment each, before declining to approximately 3% among the rest. China presents a contrasting scenario. Although Chinese SOEs account for 61% of global SOE employment, SOE employment constitutes only 6% of total employment in China.
Note: The numbers in the figure should be interpreted with caution since the share of total employment by SOEs in each jurisdiction could also include employment generated abroad through their foreign subsidiaries or direct operations.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details; ILO (2025[9]), https://ilostat.ilo.org/data/bulk/; World Bank (2025[10]), https://databank.worldbank.org/metadataglossary/world-development-indicators/series/SL.EMP.WORK.ZS.
Across regions, unlisted SOEs far outnumber listed SOEs, with 23 844 non-financial unlisted SOEs compared with 2 224 listed SOEs globally (Figure 1.6). Listed SOEs are generally larger, except in Africa, where median assets are similar. The share of listed SOEs varies from 3% in Europe to 31% in Africa, with LAC at 22%, “Others” at 23%, Asia excluding China at 16% and China at 8%. China has the largest number of listed SOEs (1 133) and the highest median assets (USD 1.77 billion). Size differences tend to be greater where listing is less common, with listed SOEs nearly eight times larger than unlisted SOEs in Europe, compared with 1.2 times in Africa. However, it is worth noting that, in Africa, coverage is highly concentrated among larger firms, which explains both the higher share of listed firms and the relatively small size gap between listed and unlisted SOEs.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
Listed non-financial SOEs represent the majority of employment in Africa, Asia excl. China, China and LAC. Listed SOEs in Africa account for 88% of SOE employment, followed by Asia excluding China (81%) and LAC (69%). Europe sits at the opposite end, with only 31% of employment in listed SOEs (Figure 1.7).
In absolute terms, China accounts for by far the largest SOE employment, with 10.7 million people employed by listed SOEs and 10 million by unlisted SOEs, exceeding the combined total of the other five regions. Europe follows, with 2 million employees in listed SOEs and 4.2 million in unlisted SOEs. Employment in Africa, Asia excluding China and LAC is considerably lower, ranging from around 60 000 to 2 million.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
This section focusses on analysing how profitable SOEs are and how performance varies across regions and industries; how they finance their operations; and how much they invest. Together, these dimensions provide a more comprehensive picture of the SOE sector beyond its size.
1.3.1. Performance of SOEs
Assessing performance may be challenging when SOEs are expected to pursue broader public policy objectives, such as ensuring service provision, safeguarding employment or securing strategic supply, which may not always align with efficiency or profitability. Financial performance may also be shaped by differences in market structures, regulatory environments and exposure to economic conditions.
Given the different regional industry composition of SOEs, performance varies across regions and over time. African SOEs show the most pronounced improvement in performance. This includes an increase in the median return on equity (ROE) and a decline in the share of loss-making SOEs (Panel A, Figure 1.8). This trend is reinforced by an increase in asset turnover between 2013 and 2024, a measure of how much revenue SOEs generate relative to their asset base (Panel B). A similar trend is observed in LAC, where the share of SOEs reporting negative earnings declined from 25% in 2013 to around 21% in 2024, while median ROE doubled from 5% to around 10%. Asset turnover shows a similar positive trend. Strong SOE performance in LAC and Africa is heavily influenced by mining companies (Arikan, Medina and Ruiz Casas, 2026[1]), while reforms in LAC have sought to strengthen governance, oversight and state ownership arrangements to improve financial and economic performance (OECD, 2021[11]; Inter-American Development Bank, 2015[12]).
In contrast, Chinese SOEs exhibit a deterioration in performance and in their asset turnover ratios. The share of loss-making SOEs went from 17% in 2013 to 27% in 2024, while median ROE declined from 6% to 4% and asset turnover went from 67% to 43%. This is consistent with broader evidence of declining corporate profitability in China and persistent financial vulnerabilities among SOEs, partly reflecting weaker sales relative to assets and intensifying market competition (International Monetary Fund, 2024[13]). Asia excluding China shows a more mixed pattern, with the share of loss-making SOEs slightly improving while return on equity and asset turnover have deteriorated. SOEs in Europe and in the “Others” region have shown a more stable performance but a low asset turnover in both years, consistent with the capital-intensive nature of their SOE base. The differences in SOE performance become more pronounced when looking across industries and regions (for details see (Arikan, Medina and Ruiz Casas, 2026[1])).
Note: Performance is measured by median return on equity (dots, right axis), calculated as net income divided by total equity. Bars (left axis) show the share of SOEs reporting negative net income.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
1.3.2. Financing structure of SOEs
SOE financing structure reflects the share of assets financed through liabilities rather than equity. Higher leverage can support investment but also increases financial vulnerability, particularly when earnings or cash flows weaken.
Broadly, leverage (liabilities over assets) has slightly increased across regions between 2013 and 2024. Aggregate leverage in African and Latin American SOEs has increased by 16 and 18 p.p. respectively (Figure 1.9). In Asia excluding China, Europe and in Other jurisdictions the aggregate leverage increased between 3‑6 p.p. By contrast, in China aggregate SOE leverage decreased by 1 p.p. over the analysed period, indicating that leverage levels remained broadly stable.
Note: The figure shows the aggregate leverage ratio, calculated as total liabilities divided by total assets.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
While leverage increased across most regions between 2013 and 2024, this was generally driven by growth in non-debt liabilities (such as accounts payable, tax liabilities and deferred revenue) rather than financial borrowing. In LAC, for example, the increase in leverage was driven almost entirely by rising non-debt liabilities, which increased from 33% to 47% of assets. Africa presents a different pattern, with the increase in leverage resulting primarily from higher long-term debt, which expanded from 2% to 14% of assets. Asia excluding China stands out as the only region where financial debt became the largest liability category, reaching 31.7% of assets in 2024, though it only slightly exceeded non-debt liabilities (30% of assets).
At the company level, leverage also shows great variation. In Other jurisdictions and Asia excluding China, SOEs show great dispersion in their leverage levels. Thirty-six per cent of firms record leverage above 75% of their assets and 15% have low leverage. SOEs in China and LAC show distributions with a higher share in the 50‑75% leverage range, while Africa has the lowest share of highly leveraged firms (20%). In Europe, 62% of firms have leverage above 50% (Figure 1.10).
Note: Leverage ratio is calculated as total liabilities over total assets.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
1.3.3. Investment by SOEs
Investment shapes SOEs’ capacity to provide essential services, enhance productivity and support broader innovation objectives. They invest in intangible assets, such as research and development (R&D) in new technologies and knowledge accumulation, as well as in long-term physical assets, such as equipment and infrastructure.
Overall, R&D spending by SOEs increased over the 2013-2024 period, particularly in China and, to a lesser extent, in Africa, Europe and Others. In 2024, Chinese SOEs recorded the highest level of R&D investment, accounting for 0.34% of their total assets, followed by SOEs from LAC and Europe at 0.23% and 0.17%, respectively (Panel A, Figure 1.11). African SOEs showed the lowest level of R&D investment, at around 0.03% of their assets. SOEs’ R&D investment declined substantially in LAC and Asia excluding China, which were the two regions with the highest levels in 2013.
The rapid increase in Chinese SOEs’ R&D is partially attributable to ongoing efforts by the State‑owned Assets Supervision and Administration Commission of the State Council (SASAC) to promote R&D expenditures through its performance assessment framework for SOE managers. Since 2019, new measures allow R&D spending to be treated as realised profit within the performance evaluation metrics (SASAC, 2019[14]). Further efforts include the “One Profit and Five Ratios” system that introduced a more holistic approach in SOE performance evaluation, recognising the value of R&D spending as one of the key indicators to be evaluated (Ashare Insights, 2026[15]).
In terms of the sectoral composition, manufacturing SOEs account for the largest share of R&D investment between 2013 and 2024, steadily increasing their share from 48% in 2013 to 53% in 2024. This reflects the R&D-intensive nature of manufacturing industries, including sectors such as automotive, aerospace, semiconductors, pharmaceuticals and chemicals. SOEs in the construction sector recorded the sharpest expansion, more than doubling their share of R&D spending, from 13% in 2013 to 29% in 2024. R&D expenditure in the construction sector may include the development and testing of new materials, construction methods, digital and automation technologies, energy-efficient and low-carbon solutions, structural and infrastructure innovations, and technologies to improve safety, resilience and circularity.
Note: Panel A shows R&D spending by regions. Panel B shows non-financial SOEs’ total R&D spending by sectors.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
SOEs in Europe and in Other jurisdictions show greater investment, but with volatility over time. Overall, investment in fixed capital shows that many SOEs have low levels of investment. SOEs at the lower end of the investment distribution (25th percentile) invest less than the depreciation of their existing assets, meaning that the new fixed assets added are insufficient to fully replace the capital being depreciated, potentially implying a gradual deterioration in the quality or productive capacity of their asset base. It is worth highlighting that the quality of information on capital expenditure – the usual proxy for investment – is poor; therefore, investment is calculated as the annual variation in fixed assets over total assets at the end of the period (Figure 1.12).
Note: Investment is proxied as the year-on-year change in fixed assets, expressed as a share of total assets at the end of the period. The figure shows median net investment, with the shaded band showing the 25th and 75th percentiles.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
SOEs often operate alongside privately held companies in the same markets, but differences in their objectives, governance and financing structures can affect how they make corporate decisions. Given their significant presence across economies and industries, differences in how SOEs operate and perform relative to private firms can also have broader implications for competition, market outcomes and the allocation of capital in the economy.
Beyond commercial objectives, SOEs may be expected to pursue non-commercial objectives, including provision of strategic goods and services, operating in capital intensive or commercially less attractive sectors, providing employment and mitigating market failures. These broader mandates can be accompanied by specific advantages, including government guarantees, preferential access to finance or other forms of state support (OECD, 2024[16]). At the same time, state ownership may also expose SOEs to political influence or weaker managerial incentives, potentially affecting their efficiency and financial performance (OECD, 2024[17]).
The following analysis uses a sample of companies from the OECD Global SOE Dataset and a corresponding sample of non-SOEs operating in broadly comparable market settings. The analysis focusses on non-financial firms operating in six non-regulated industries, including construction, manufacturing, mining, real estate, services and wholesale trade, where sufficient cross-country coverage is available, allowing for meaningful comparisons between SOEs and non-SOEs. Consistent data cleaning and selection criteria are applied across both groups, including adjustments for inflation and exchange‑rate differences, the exclusion of non-profit entities, and the application of a minimum asset threshold (following (Arikan, Medina and Ruiz Casas, 2026[1])). The resulting panel dataset comprises 17 441 SOEs and 64 807 non-SOEs and spans between 2013 and 2024. Overall, the SOE and non-SOE groups are broadly comparable in terms of firm size, sales and employment (Figure 1.13).
Note: The figure shows median values in each sector for assets, sales and employment. Comparisons between SOEs and non-SOEs are made across six industries: construction, manufacturing, mining, real estate, services and wholesale trade. Countries with fewer than 30 SOEs or 50 non-SOEs are excluded due to small sample size.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
Differences in SOE presence across industries and regions can affect market concentration and competition. Evidence from Europe suggests that greater SOE presence within an industry is generally associated with lower productivity levels among privately owned companies, but in utility sectors, such as electricity, gas and transportation, they can benefit from positive spillovers stemming from more affordable or reliable services (Merlevede and Muylle, 2026[18]). A high concentration of SOEs may also create barriers to entry for non-SOEs, particularly where the preferential access to finance or other forms of state support gives SOEs an advantage over non-SOEs (World Bank, 2023[19]; OECD, 2024[16]).
Note: Africa and LAC are excluded from the analysis due to low data coverage.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
SOEs represent a significant share of total sales across most sectors in China, while in other regions, their presence is particularly pronounced in mining (Figure 1.14). In 2023, SOEs accounted for 81% of total mining sector sales in China, compared with 52% in Asia excluding China and 52% in Other jurisdictions. This reflects the strategic importance of the mining sector and the historically prominent role of the state in natural resource ownership and exploitation. Europe is the exception, with SOEs accounting for only 20% of mining sector sales and no industry showing a high degree of SOE presence. Outside mining, SOE presence is also relatively limited in Asia excluding China, while other jurisdictions show a more substantial SOE share in manufacturing (37%) and construction (33%).
1.4.1. Performance of SOEs and non-SOEs
State ownership can shape firm performance through managerial incentives, corporate governance and mandates to pursue broader policy objectives. Evidence from European SOEs shows that SOEs tend to employ more workers than their privately owned counterparts, while incurring higher labour costs (Merlevede and Muylle, 2026[18]). Political influence and weaker market discipline may further affect SOEs’ efficiency and profitability.
OECD evidence shows that SOEs were less profitable than non-SOEs between 2013-2024 (Figure 1.15). During this period, the median return on equity of SOEs was on average around 4.7%, compared with approximately 6.4% for non-SOEs, with the profitability gap varying between 1‑3 p.p. throughout the period. Other profitability indicators show a similar pattern. In 2024, the median net profit margin was 2.7% for SOEs, compared with 4.5% for non-SOEs, while the median net profit of non-SOEs (USD 6.8 million) was more than twice that of SOEs (USD 2.8 million).
Note: Comparison between SOEs and non-SOEs is made across six industries: construction, manufacturing, mining, real estate, services and wholesale trade. Countries with fewer than 30 SOEs or 50 non-SOEs are excluded due to small sample size.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
Across most industries, SOEs also record lower return on equity than non-SOEs. The largest profitability gaps are observed in services and construction, where the median ROE of non-SOEs exceeds that of SOEs by around 3 p.p. on average (Figure 1.16). SOEs operating in the real estate sector exhibit the lowest profitability for both groups, with median ROE remaining at around 2.4% for SOEs and 3.8% for non-SOEs over time.
Note: Comparison between SOEs and non-SOEs is made across six industries: construction, manufacturing, mining, real estate, services and wholesale trade. Countries with fewer than 30 SOEs or 50 non-SOEs are excluded due to small sample size.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
By contrast, in mining, SOEs consistently outperform their private sector counterparts, with median ROE reaching 10% in 2024, compared with 7% for non-SOEs. This is partially attributable to the strategic nature of the mining sector, where government ownership and SOE concentration within the industry remain significant (see Figure 1.14), allowing SOEs to operate at greater scale and to benefit from privileged access to reserves and licences. Wholesale trade SOEs also show higher ROE than non-SOEs, although this reversed in 2024. SOEs operating in the wholesale trade sector may benefit from preferential trading arrangements, including exclusive rights over the import or export of certain products (WTO, 2026[20]). This might, in turn, strengthen SOEs’ market position relative to private competitors and support higher profitability.
Non-SOEs record generally higher profitability than SOEs in Europe and in Other jurisdictions (Figure 1.17). In these regions, non-SOEs outperform SOEs by around 4 and 3 p.p. on average, respectively. In Asia the performance gap is small, and in some years SOEs outperform their privately held counterparts. In Africa and LAC the difference in performance is greater and more volatile, owing to the large exposure to the mining sector in these regions as well as greater exposure to macroeconomic and political cycles. It is also worth highlighting that a relatively small number of SOEs and non-SOEs in the sample for these regions may also contribute to greater volatility in the observed profitability trends.
Note: The figure shows the difference between median ROEs. Comparisons between SOEs and non-SOEs are made across six industries: construction, manufacturing, mining, real estate, services and wholesale trade. Countries with fewer than 30 SOEs are excluded due to small sample size.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
1.4.2. Financing structures of SOEs and non-SOEs
The financing structure of SOEs often differs from that of privately owned firms, reflecting differences in their objectives and access to funding. In general, SOEs tend to be more leveraged than non-SOEs, partly due to implicit – and sometimes explicit – government guarantees that can facilitate their access to debt financing. Limited reliance on equity further reinforces this pattern. The median leverage of SOEs stands at around 62% of total assets, compared to 58% for non-SOEs, with 2024 figures at 61% versus 52%, respectively (Panel A, Figure 1.18).
SOEs generally rely more on “other liabilities” than on financial debt (short- or long-term) compared to non-SOEs. Other liabilities arise from operational activities, as opposed to traditional market-based borrowing, and include deferred payments, trade credits, tax payables or intra-group borrowing. While these forms of financing may provide SOEs with greater flexibility and access to funding, a high reliance on other liabilities may also reflect limited access to market-based sources of finance or an accumulation of obligations to other parties.
SOEs’ greater reliance on other liabilities is most pronounced in Africa, where they derive 82% of their leverage from other liabilities and only 18% from financial debt, whereas non-SOEs have 45% other liabilities and 55% financial debt (Panel B). Europe is the only region where the share of financial debt in total liabilities for SOEs (49%) is higher compared to non-SOEs (45%). This partly reflects Europe’s deeper debt markets and utilities’ greater access to debt financing.
Note: Leverage is calculated as total liabilities divided by total assets. Comparison between SOEs and non-SOEs is made across six industries: construction, manufacturing, mining, real estate, services and wholesale trade. Countries with fewer than 30 SOEs are excluded due to small sample size. Companies with negative equity are excluded in the analysis.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
SOEs show more leverage than non-SOEs in most years, with the exception of Other jurisdictions. Between 2013 and 2024, China and Europe recorded the highest median SOE leverage levels, averaging around 64% and 62% of total assets, respectively (Figure 1.19). SOEs in Other jurisdictions are the least leveraged, at roughly 53% of total assets, whereas non-SOEs are, on average, 9 p.p. more leveraged than SOEs.
Note: Africa is excluded due to small sample size. Leverage is calculated as total liabilities divided by total assets. Comparison between SOEs and non-SOEs is made across six industries: construction, manufacturing, mining, real estate, services and wholesale trade. Countries with fewer than 30 SOEs are excluded due to small sample size. Companies with negative equity are excluded in the analysis.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
1.4.3. Investment by SOEs and non-SOEs
Investment by SOEs can differ from non-SOEs in size, cost, time horizon and underlying drivers, as SOEs may undertake investment to support strategic or broader public policy objectives. Their link to the state can also provide them with easier access to financing for investments, as they can often benefit from public support, preferential financing or special regulatory treatment (Bortolotti et al., 2019[21]; OECD, 2024[16]). Non-SOEs, on the other hand, have stronger incentives to undertake commercially attractive investment opportunities and generally respond more directly to expected profitability and market conditions, but may be affected more by financing constraints.
According to the Global SOE Dataset, SOEs invest less in R&D than their private counterparts in most regions, except in China (Figure 1.20). In 2023, the largest investment gap between non-SOEs and SOEs was observed in Asia excluding China. European SOEs also invest less in R&D than non-SOEs, although their overall investment level is the highest across regions, at 0.5% of total assets in 2023. In other jurisdictions, SOEs and non-SOEs exhibit broadly similar investment patterns, with non-SOEs investing slightly more. China is the exception. In 2023, Chinese SOEs’ total R&D investment amounted to 0.4% of total assets, twice the corresponding share for non-SOEs.
Note: The figure shows aggregate R&D spending over aggregate assets in each region. Africa and LAC are excluded due to low data coverage. Comparison between SOEs and non-SOEs is made across six industries: construction, manufacturing, mining, real estate, services and wholesale trade. Countries with fewer than 30 SOEs are excluded due to small sample size.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
The investment behaviour of SOEs and non-SOEs also varies substantially across sectors and over time, reflecting differences in their respective roles within the economy and sectoral investment needs. In construction, SOEs have significantly higher R&D investment as a share of total assets than non-SOEs, with an average gap of 0.5 p.p. between 2013 and 2024 (Figure 1.21). This gap potentially reflects SOEs’ involvement in large‑scale infrastructure projects and related engineering and technological activities. Similarly, mining SOEs also consistently invest a higher share of their total assets in R&D than non-SOEs, although the gap is considerably narrower.
By contrast, non-SOEs invest a higher share of their total assets in R&D across all other sectors, with the highest levels observed in manufacturing. Between 2013 and 2024, non-SOEs in manufacturing invested on average 1.3% of their assets in R&D, compared with 0.6% for SOEs. This is primarily driven by differences in the types of manufacturing activities undertaken by the two groups, with non-SOEs being more concentrated in R&D-intensive segments, while SOEs are concentrated in mature, process-based industries where technological upgrading is largely driven by capital expenditures rather than R&D. For example, petroleum refining accounts for 24% of total SOE sales in manufacturing, compared with just 5% for non-SOEs. Petroleum refining is classified as a low-to-medium R&D-intensity sector (Galindo-Rueda and Verger, 2016[22]). Conversely, SOEs have a considerably smaller presence in pharmaceuticals, a high R&D-intensity sector, with SOE sales amounting to around half the share observed for non-SOEs.
Note: The figure shows aggregate R&D investment over aggregate assets in each sector.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
Patterns are similar in the service sector, as non-SOEs invest more in R&D compared to SOEs, with the difference widening especially after 2021. R&D investment is lowest for both SOEs and non-SOEs in real estate and wholesale trade. These sectors are categorised as low R&D intensive, as companies generally have less need for research and innovation activities (Galindo-Rueda and Verger, 2016[22]).
As discussed in Section 1.3, investment in fixed assets is calculated as the annual variation in fixed assets over total assets. SOEs generally tend to invest less than non-SOEs. In other words, SOEs are investing less than their private counterparts to maintain their asset base. The largest gap is between SOEs and non-SOEs in Europe. At the bottom quartile, where net investment is not sufficient to offset depreciation, European SOEs’ investment is 5.4 p.p. lower than that of non-SOEs (Figure 1.22). A similar, albeit narrower, gap is observed in Asia excluding China. At the top quartile, non-SOEs across all regions record positive net capital accumulation, with Chinese non-SOEs showing the highest net investment at 1.6% of total assets.
Note: Comparison between SOEs and non-SOEs is made across six industries: construction, manufacturing, mining, real estate, services and wholesale trade. Countries with fewer than 30 SOEs are excluded due to small sample size. P denotes percentile.
Source: OECD Global State‑Owned Enterprises Dataset, ORBIS, see Annex for details.
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← 1. The OECD Global SOE Dataset identifies large SOEs using ORBIS ownership data and OECD ownership classifications, capturing economically significant enterprises with direct or indirect state ownership across commercial sectors. Detailed definitions, ownership thresholds, sectoral coverage and the jurisdiction-level list of large SOEs are presented in Annex A of the report. For more information, please also see Arikan, G., A. Medina and A. Ruiz Casas (2026[1]), “Building a global dataset on state-owned enterprises”, OECD Corporate Governance Working Papers, No. 29.