The Impact of Country Risk on Foreign Direct Investments in the MENA Region

This paper attempts to study the impact of country risk on foreign direct investment in the MENA region. FDI operations, in the rest of the world have increased after 2010, while flows to the MENA region continued their downward trend as is exacerbating the economic, political and social conditions. In the wake of the "Arab Spring", the level and composition of FDI flows had been severely affected. In the current international context, especially in MENA region, the understanding of country risk by international investors is extremely important. This paper will firstly present the literature review related to different aspects of FDI and country risk. Secondly, principal concepts on traditional and non- traditional FDI determinants will be presented. Thirdly, an in-depth analysis on FDI in the MENA region will be carried out. Finally, a set of suggestions and recommendations will be presented in order to develop potential strategies attracting and enhancing FDI in the MENA region