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In spite of many reforms have been taken to attract more FDI in the Arab countries, This countries still compare poorly with other developing countries, like Mexico, Brazil, Hong Kong and Singapore. This countries attracted US $ 10.78, 10.1, 13.56 and 11.41 billion respectively in year 2003.Meanwhile the Arab countries as a whole attracted US $ 8.6 billion or 5.01% of the total FDI in the developing countries and 1.54% of the total world FDI in 2003. Furthermore the total FDI flows in the Arab countries during 1992-2003 were smaller than the FDI flows in China (US $ 53.5 billion) in year 2003 only. On the other hand the investments between the Arab countries in the same period were very small since it reached US $ 20.7 billion or 44% of the total FDI flows in the Arab countries during (1995-2003).So the purpose of this paper is to review and analysis the Mechanisms for FDI Flows Motivation in The Arab Countries.

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Researcher in an international economy, holds a master´s degree in economics. Currently manager of support programs, organizational and institutional in the sector of developing exports of small and medium enterprises of the Ministry of trade and Industry of Egypt.

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