The changing international/external economic environment, which is characterized by rapid globalization, expansion of foreign direct investment (FDI), trade liberalization, and technological developments, is creating both opportunities for and risks in achieving development objectives in Sudan.

This paper is an attempt to contribute to the debate regarding the importance of FDI in the Sudanese development path and the related issues of strategy and policies towards FDI. It tries to examine and understand the locational-specific characteristics (of the country) and ownership-specific characteristics (of the investing firms), which shaped the current FDI situation in Sudan.