Foreign direct investment in MENA: Impact of institutional context*

Abstract

This policy brief summarizes the findings from a study on the determinants of greenfield investment in the Middle East and North Africa region (MENA). The results point out that institutional deficiencies deter foreign direct investment in the region and in particular, for the main oil producers within this region. Improvements in the areas of democratization, institutional quality and violence reduction would undoubtedly make the region more attractive to foreign investors.