How and to what effect does Mahfouz employ stream of consciousness narration in the novel?

The stream of consciousness narrative technique and how it is used to characterize Said Mahran 

Stream of consciousness is a literary technique and a method of narration; it comprises of the flow of thoughts and feelings and exposes the minds and inner thoughts of the characters, and therefore it is not cohesive and does not have a fixed structure. 
The novel 'The Thief and the Dogs', is mostly narrated in a third-person limited narrative, however, at times, the reader is exposed to Said's unfiltered thoughts and feelings in a particular situation; information that can not be predicted or therefore elaborated on by a third person narrative- this allows an insight into Said's thirst and belief in vengeance against the ones that had betrayed at some point of their lives. “Your turn will come, Nabawiyya. There’s no escape from me. I’m the devil himself,” (chapter 4), this demonstrates his anger towards his ex-wife and moves the plot forward, as the reader follows through with his journey of seeking revenge, between the chapters/days. 
Moreover, the use of stream of consciousness helps to move the plot forward and assists the reader in having an in-depth understanding of certain situations and Said's true self.
Overall, it is a way Mahfouz lets the reader understand the protagonist's perspective on what is truly happening and the possible reasons/explanations as to why.

For example, in chapter 4, the stream consciousness technique characterizes Said's negative perspective on the world and how his external conflicts drive his reckless behavior. His hatred is driven by the change which has occurred in his surroundings and his the people in his old life, like Rauf.

Within chapter seven, the reader can acknowledge specific streams of consciousness that characterize Said as an in denial man who is distant from reality as he believes he “must wait until he’s arranged things, then swoop like an eagle”.

Specific elements of language and style and its effect 

Mood: A lot of revelations are made to the reader about Said's past, creating a certain [sympathetic] mood for the reader- leading them to, at times, temporarily sympathize with Said 

Characterization of Said: After it is revealed that his parents had passed away, it suggests that he had built himself on his own and the reader follows through him suffering the consequences of that event, through the days, after he is released from prison

[Internal] Conflict: he is trying to find explanations as to why all the people within his life have turned against him into ‘dogs’

Symbolism: Nur finds difficulties in how life had been treating her and hopes for a ‘bright’ day to come along and for her to not live in fear ~ Nur= light

‘The days passed like dreams’- even though negativity is conveyed, the characters are still in hopes for better days to come along// foreshadowing of future events (dreams occur during sleep- a temporary [and eventually permanent] death) (chapter 11)

Mahfouz’s context of production

The context of production is the situation or circumstances in which a text is produced with significant factors influencing the writing or speaking of a text; for the following novel, it is post-revolutionary (5 years following the Egyptain Revolution of 1952). Mahfouz’s context of production is to express his confusion and perplexities during the events during that time, into the subjective character of Said. It is seen that Said seeks answers to his complexities through the ‘stream of consciousness’ by having flashbacks of his father, the death of both parents, and the role Ilwan played during these desperate events in Said’s life. Said tries to find reason and explanation of what went wrong in the present by linking it to the past, but it doesn’t seem to make sense as he could only picture Ilwan in good light and could not find another reason encourage him to turn against Ilwan even more. This is reflective of Mahfouz’s confusion and perplexities as he was having trouble piecing together his thoughts during present events, and it is reflected by Said’s stream of consciousness. As audience members we understand that Mahfouz, or people like himself, although might have not been criminals like Said but did face similar interior turmoil. As intelects they were censored by their ruling class, and left unattended causing them to doubt and question their circumstances, and subsequently where their values lie in response to these circumstances.