After formulating a theoretical foundation for the sociology of narrative genres based on the work of Bakhtin, Foucault, Goldmann, Jauss and Said, this work challenges the widely held assumption that Arabic culture stagnated before its contact with the West at the beginning of the 19th century. Hafez traces the revival to the mid-18th century and follows its development throughout the Arab world, showing how the emergence of a new reading public with its distinct world view induced the process of the transformation and genesis of a new literary discourse. This is followed by a study of the dynamics of this process and an outline of the various stages of the formation and transformation of the new narrative discourse until it culminates in the production of a sophisticated and mature narrative.