The Middle East region is not only interesting from an academic perspective due to the scarcity of research in the area. The region also provides a productive ground for the development and testing of new theory due to several unique characteristics. The features that make the regional in comparison unique in this situation are the presence of large natural resource foundation in around half the countries in the region and the presence of high levels of environmental risk. These elements make the Middle East region particularly suitable for enforcing the understanding the role of oil natural resources and environmental , economic and political risk in determining Oil FDI and International Business flows. The objectives and scope for the research have been determined on the basis of the growing interest in Oil FDI in the Middle East region among policy makers and investors, the lack of academic research that has been carried out on the excitation area and the specific characteristics of the region. As a result, the research presented in the aims to contribute to the understanding of Oil FDI, International Business in the Middle East region . What are the determinants of Oil FDI and production of crude oil in the MENA region? The overall question can therefore be divided again into the following large scale and small scale level sub-questions: (i) What is the role played by different potential determinants of Oil FDI flows in the MENA region? (ii) What is the role played by different environmental , economic and political risk factors in attracting Oil FDI? (iii) Why do companies choose to invest in particular countries in the MENA region? (iv) Why do companies choose for particular entry operation modes or work processes when investing in the MENA region? It is possible to test and expand existing theory that has been developed on the topic of Oil FDI for regions in the MENA countries, as well as to develop new theory related to the role of OLI factors environmental ,economic ,political risk and energy or oil resource properties in Oil FDI flows and investment decision making. B-143 The research is defined as the period 1987 - 2008. In this way, the period is long enough to include a number of years of low and high Oil FDI flows as well as a variety of scores on the various potential determinants of Oil FDI during the period. Political Stability and Oil FDI: why is political stability needed to attract Oil FDI? FDI = Foreign Direct investment. If BP invested in Venezuela or Iraq to produce oil. This would be an example of foreign direct investment into Venezuela and Iraq. The political situation is going to be important for determining whether investing in these countries is a good idea. The political turmoil has disrupted economic activity the most in oil-importing countries such as Egypt and Tunisia, argued Ahmed. Generally, oil-importing countries are facing a number of pressures arising from sharp increases in international fuel and food prices, declines in tourism, lower Oil foreign direct investments (FDI), and higher borrowing costs. The determinants of inward Oil FDI flows include all articles identified on the determinants of Oil FDI flows that have been published since 1995, John Dunning‘s original test of Ownership, Location and Internalisation (OLI) factors of 1980. With respect to oil entry ,investment and operation mode theory, the case study research demonstrates that in the MENA region, multinational companies with significant international experience in the MENA region within their core business, don‘t see joint ventures as an effective way of managing environmental risk. In summary, the research adds to International Business theories related to the relevant oil exporting,production,OL factors, environmental and economic risk, political variables and the role of transaction costs (TC) in determining location and operation processes decisions in the MENA region. These factors in turn are reflected in a model of the determinants of Oil Investment in the MENA region.