In the pursuit of economic development, third-world countries are increasingly vying to attract foreign investments. This endeavor is contingent upon several critical factors, including the establishment of stable economic and political environments, robust infrastructure, open trade competition, and assurance of investment protection. Additionally, the availability of skilled manpower, abundant natural resources, and stringent regulations safeguarding intellectual property rights and incentives for investors are imperative. Despite its limited potential, Jordan, as a third-world nation, has been striving to enhance its economic landscape. In the late eighties, Jordan encountered numerous economic crises triggered by dwindling external aid and reduced remittances from Jordanians abroad. This paper explores the multifaceted dynamics surrounding the incentivization of foreign investment in third-world countries, with a focus on the case of Jordan, shedding light on the challenges and opportunities inherent in this endeavor.