The fierce competition among developing countries to attract foreign direct investment (FDI) has made the understanding of major FDI incentives of primary importance. The aim of this paper is to examine the main factors in foreign investment decision in Oman. Data collected from more than a hundred foreign equity ventures were used in the analysis. Political and economic stability are found to be the two most important motives. Contrary to expectations, purchasing power of customers, market size and availability of low cost inputs are the least desirable factors. It is also found that all motives do not equally appeal to all foreign investors.

The fierce competition among developing countries to attract foreign direct investment (FDI) has made the understanding of major FDI incentives of primary importance. The aim of this paper is to examine the main factors in foreign investment decision in Oman. Data collected from more than a hundre...