Foreign direct investment (FDI) is crucial for the development of Arab economies. Economic, political, and infrastructure factors influence the attraction of FDI. Egypt, Jordan, and Yemen have varying experiences in attracting investment. The lack of stable conditions and suitable infrastructure hinders FDI. The goal of the study was to define FDI, explore its components, and analyze its determinants in Arab economies. The findings suggest that creating a conducive investment environment is essential for attracting FDI and enhancing national agendas.