The purpose of this research was to understand the effect of economic sanctions on the amount of incoming FDI to a specific country. The case study chosen for this research was the case of Sudan and South Sudan. Sudan and South Sudan were one country which was under several economic sanctions applied since 1996, however and in 2011 South Sudan got separated from Sudan, and relieved from these sanctions. A difference in difference approach was used to perform a regression analysis on a set of data showing the amounts of FDI and number of FDI projects coming into the two countries during the period from 2003 and up to 2019.