A more disaggregate picture of FDI in MENA
shows some differences from the rest of the
world and over time. Although the region
attracted more FDI in the 2000s relative to the
1990s, reflecting improvements in the business
environment in many economies, the majority of
countries performed below potential. In
addition, FDI was concentrated in the resourceintensive
and services sectors, while nonoil
manufacturing FDI remained weak. Developing
oil importing countries received just 30 percent
of the region’s FDI inflows and a large amount
of it came from the GCC economies. As oil
prices rose in the 2000s, source countries shifted
investments toward the oil exporting countries
in the region. After 2010, FDI inflows declined
across the region, public investment declined in
developing MENA, while domestic private
investment remained relatively unaffected.