The research presents a comparative study of Libya and Egypt. Both are developing economies in North Africa, and both have adopted FDI and TT as ways to affect economic development and economic structure in the countries. The purpose of this study is to investigate the key success factors impacting foreign direct investment (FDI) and technology transfer (TT) from the perspective of governments of host countries . The investigation applies a questionnaire survey method for primary data collection from firm managers in the two countries. Data were collected from representatives of firms with FDI and TT in Libya and Egypt. The matched samples comprise 149 firms in both Libya and Egypt, so that key economic sectors could be covered in the two countries. This research also uses data collected from secondary sources such as government reports, documents and government websites. These collected data were processed and analyzed.