Globalization of financial markets helps companies to borrow funds from cross border financial markets. Investors are seeking returns on their investments with lower risks. Diversification is an effective way to reduce risk of investment not only in local but international portfolio management as well. Investors invest their funds in financial markets with feasible market conditions, particularly lower systematic risk. Factors such as political stability, stable economy, lower interest rate and low rate of inflation attract investors to invest in international financial markets. The fall in oil and gas prices, the revenue and economic growth of Arab countries that are rich in oil deposits and heavily rely on their hydrocarbon industry have been affected adversely. Moreover, the international political conflicts between Arab states such as blockade of Qatar and boycott of diplomatic relations with Qatar by Saudi Arabia, United Arab Emirates, Libya, Egypt, Bahrain and Yemen is affecting the political outlook of whole region negatively. It is one of the main reasons why MENA countries have lost their charm and attraction of investors due to political instability and heavy reliance on oil and gas industry that is highly correlated with economic fluctuations in international markets.