This study is substantial because it highlighted role and significance of the FDI in the Arab World, and for the first time to analyze the empirical data of the 22 Arab countries in particular the Gulf Cooperation Council (GCC) Economy. In addition, the business environment in the Arab World was evaluated through six dimensions of the Worldwide Governance Indicators, and the eleventh topics Doing Business reports. The business environment, economic performance, and the new policy and regulation that have been implemented in Arab Countries increased the attractiveness level of the FDI. Arab world countries have witnessed major increase in the level of FDI inflows over the past decade. FDI inflows to Arab countries were fluctuated from 2006 till 2010. The GCC countries are the highest receiver of FDI in the Arab World during the last five years; it increased from 54% to 60%. This showed the economic stability and development in the GCC region. The FDI and stocks is concentrated in few countries for instance about 80% of the FDI in 2010 is concentrated in six countries: Saudi Arabia 42%, Egypt 10%, Qatar 8%, Lebanon 7%, United Arab Emirates 6% and Libya 6%.