Dissertation (MIR)This dissertation reports the findings of a critical assessment of the influence of Diplomatic Relations (DRs) in promoting Foreign Direct Investment (FDI) in Zanzibar, Tanzania. The findings reported in this dissertation are organized under one broad theme, namely the extent which diplomatic relations influence Foreign Direct Investment in Zanzibar. The study was guided by the Theory of Economic Internationalism, Theory of Economic Nationalism, and the Theory of Economic Diplomacy. The approach of the study is both quantitative and quantitative in that interview, questionnaires, and documentary reviews were employed to collect data from the respondents. The informants of the study were obtained through stratified random sampling drawing from different groups. 400 respondents were obtained from a group of officials from Consulate General of Oman, Consulate of the Republic of the People of China, Consulate of India, and Officials from the Government of Zanzibar, Officials from Zanzibar Investment Promotion Authority (ZIPA), retired ambassadors, private enterprises and business community members. The main findings observed that Diplomatic Relations is a sufficient network for promoting FDI in Zanzibar. This situation necessitates the Government of Zanzibar to increase the influence of diplomatic relations with international actors to increase the growth of FDI. The study also revealed that there is an absence of recognized rules of investment, legal and administrative challenges facing foreign investors, such as bureaucracy and failure for government to harmonize the East Africa law for investment. The recommendations the Government has to review all laws and policies of investment for investors to comply with the intended investment projects. The Government has to restructure ZIPA to develop a One-Stop Center of investment and ratify the law of the Common Market.