The primary objective of this research is to assess the significance of corporate taxation policies and SDG indicators (carbon emissions and human development) on foreign investors’ decisions to invest in MENA region. The paper also studies the differential impact of corporate tax policies on FDI in MENA compared to the GCC region. To accomplish that, the study samples 12 MENA countries (6 GCC and 6 non GCC) using a panel dataset from 2000 to 2023. The paper utilizes a sequence of econometric models that include GLS and GMM. The results indicate that corporate tax has a significant negative impact on FDI in MENA with a semi-elasticity of −3.1%. However, for GCC countries, the negative impact of corporate taxation is reduced leading to a semi-elasticity of −0.1%. In terms of SDG variables, both carbon emissions and human development index show a nonlinear significant effect on FDI in MENA. At lower carbon emissions and HDI values, increasing those indicators deters FDI. However, past a certain threshold, the relationship reverses: increasing those indicators has a positive effect on FDI. The results of this study have significant implications for MENA governments that aim to strike a balance between diversifying revenue streams beyond traditional natural resources while maintaining the country’s competitiveness for attracting investors.