Abstract: The purpose of the paper is to illustrate the role of Foreign Direct Investment (FDI) in promoting the non-oil exports of Egypt with emphasis on the role played by the Arab investments in Egyptian economic activities. The paper uses econometrics analysis to shed light on Egypt’s main exporting sectors and sub-sectors that benefitted most from FDI flows in boosting their exports. The paper is sought to measure the impact of non-oil FDI on non-oil Egyptian exports to know whether the increase of FDI is associated with an increase in exports or not. To answer this question, the paper employs the integrated time series analysis through the use of Vector Autoregressive (VAR), Vector Error Correction Model (VECM) and Panel data models for annual time series data for the period 1975-2015. Before doing so, the paper addressed the literature reviews, both theoretical and empirical reviews of the effects of FDI on host country’s export performance and the causal links between Foreign direct investment and trade. There is a positive long-run equilibrium relationship between two variables; foreign direct investment flows to non-oil sectors and Egyptian non-oil exports. The econometric analysis showed that the process of correcting deviations (error equilibrium correction) in the short run which takes place in the movement of the two variables over time, is slow. And that means the impact of foreign direct investment flow to non-oil sectors on Egyptian non-oil exports is limited in the very short run; The impact takes some time which means that opportunities to stimulate non-oil exports by attracting more FDI are rather promising in the long-run. Therefore, there is a necessity for the economic policy to be planned to focus on trade and industry in long-run to attract more FDI to drive exports. The econometric analysis adopted by the paper also shows that changes in output, Foreign direct investment flows to non-oil sectors, private investment and exchange rate explain about 52% of non-oil export changes and the remaining 44% is explained by other variables that are mostly qualitative variables not included in the model such as the efficiency of export’s process management, technology levels, tariff and non-tariff restrictions imposed by some countries on their imports, quality standards and environmental requirements for some markets, the extent to which preferential agreements exist with some countries, etc. As for panel data analysis, Foreign direct investment flows to non-oil sectors has an influential role in stimulating manufacturing and tourism services exports but it does not affect exports of the agriculture sector, the ICT sector, while the agricultural exports, industrial exports, tourism boom, the thriving of ICT exports help attracting foreign direct investment to non-oil sectors. Furthermore, the panel data analysis found that FDI flows to manufacturing play an influential role in exports from some sub-industrial sectors-namely, textile sector, the pharmaceutical sector and the food sector, while it did not have a significant role in the exports of the chemical, engineering, mining, metallurgical industries, building materials and wood industries. Finally, the study recommends investment targeted promotion which is the use of various promotional resources to attract a particular type or category of FDI; it is export-oriented FDI rather than a focus on attracting FDI in general. The study also recommends Egypt to take advantage of the experiences of countries that have succeeded in promoting export-oriented foreign direct investment by equipping special export zones and turning them into industrial complexes and focusing through legislation on targeting certain investments to create industrial zones dedicated to a single activity in which Egypt enjoys competitive advantages such as the food industry and the wood furniture industry. In addition, Egypt is advised to formulate a national program to invest in high-value-added export sectors and to give preferential advantages to FDI flows to these sectors to encourage service exports, so as to transform these resources into exportable value added. The issuance of the new investment law (Law No. 72 of 2017) is a remarkable step towards this, however, the government must guarantee the proper implementation of this law and trying to make the business environment more attractive for foreign investors. Most of the previous studies conducted FDI flows to Egypt focused on measuring its overall impact on economic growth, or on variables such as productivity, employment, or its role in certain sectors, or its determinants. The value of this paper lies not only in its focus on measuring the impact of FDI flows to non-oil sectors on Egyptian non-oil exports but also in examining the impact of FDI flows to the major export sectors on exports of these sectors, as well as the impact of FDI inflows into the industrial sector on the exports of each of Egypt’s sub-industrial sectors which contributes to guiding FDI policies in Egypt to achieve a positive impact on exports and then on Egypt’s foreign trade. The paper is very important for scholars, institutes, universities, research centers, organizations and governments which concern to know and study the appropriate policies which are to be pursued to attract foreign direct investment and promote exports.