Boosting Foreign Investment in Arab Countries: Challenges and Reforms

Despite reform efforts, foreign direct investment in many Arab countries remains constrained by bureaucratic hurdles, policy unpredictability, weak investor protection, and transparency gaps. To become more attractive, governments must streamline procedures, enforce rule of law consistently, offer clear and stable incentives, and build institutional capacity to support investors. Targeted reforms in sectors like technology, green energy, and infrastructure—coupled with regional harmonization to reduce fragmentation—could unlock substantial capital inflows, especially if paired with credible governance and anti-corruption measures.