The paper reviews the exchange rate arrangements, both official and actual, currently in place in the Arab countries, and the economic performance of these countries under different exchange rate regimes. Based on country-specific economic circumstances, the paper also provides recommendations as to the desired choice of actual exchange rate policies and regimes

The purpose of the paper is to study the extent and potential significance of foreign direct investment (FDI) in the economic development of the Arab countries. The paper will first highlight the importance of international capital and financial flows in the developing countries, with a special emphasis on the position of such flows, especially FDI, in the Arab world.