This policy perspective examines the issue of attracting foreign direct investment (FDI) to the Arab countries. FDI enjoys a positive reputation among researchers and policymakers. It has been attributed a long list of virtues, among which being a vector of managerial and technological expertise, being a stable source of capital and being, at least under some conditions, conducive to growth. Determining why some countries attract more FDI than others has, therefore, become a major research and policy issue.
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