| The capital required cannot be generated in the Least Developed Countries (LDC's) themselves because of the inflexible and inexorable constant of low incomes, the vicious circle of poverty and stagnation, and the lack of profitable investment opportunities with their inherently limited local market. Besides the description study, this research synthesizes empirical evidence drawn from a model that test cross section data of fifty nine countries to provide evidence of the positive relationship between both trends, Foreign Direct Investment (FDI) and economic freedom.;Low percentage of FDI in the Middle East occurred because of many factors including chronic political instability, low economic freedom, the unbalanced law foundation and macroeconomic instability. Liberalization alone is not sufficient to attract more foreign direct investment. Therefore, decision-makers in the Middle East need to stabilize the political and the macroeconomic environment both internally and externally. |
