The legislative and institutional reforms for FDI in Arab region: Did they work?

Investment incentive and liberalization are among the prominent features of policy measures for Arab countries in the last decade. Attracting foreign direct investment (FDI) inflows are the dominant agenda in Arab region due to the need for economic diversification and in response to the global financial crisis (GFC) in 2008. The region is moving towards fostering a regulatory framework for investments to boost growth. This study evaluates the performance of Arab region in attracting FDI inflows after the GFC and compares FDA inflows with other global regions. The study highlights the legislative and institutional incentives that have been applied in response to the GFC. By analysing the FDI inflows share over the last decade, the study finds that the Arab region is still behind other economies in attracting FDI inflows. Arab governments need to revaluate these promotions and incentive measures which are aimed at enhancing business climate in the region.