Most Low Developed Countries (LDC) need foreign capital to finance economic development and sound economic development requires the application of appropriate technology. In order to advance economic and social development, most LDCs are trying to attract both foreign capital and technology by actively encouraging foreign investment within their borders. This article focuses on the efforts of the Arab Republic of Egypt, to attract foreign capital and technology. It concludes that the risks of doing business in Egypt in the 1960s were quite high, but changes which have taken place since the beginning of the 1970s have been very favorable. Egypt's foreign investment code and its government's policies and actions have demonstrated a positive attitude towards private foreign investment. But in spite of the favorable change in the investment climate, private foreign investment has been very limited. There are some hurdles still to overcome, like inadequate communications and other infrastructure mechanisms, and the everpresent and exasperating bureaucracy.