Kosovo, rich in resources and strategically located, seeks economic transformation. Attracting Foreign Direct Investment (FDI) is crucial for sustainable development. This study examines FDI determinants, including incentives, capacities, and obstacles. Structural reforms and policies are vital for a favorable business environment. Analyzing best practices and case studies, we highlight FDI's transformative potential. Integrating environmental, social, and governance (ESG) factors into FDI is vital for sustainability. Strategic policies and implementation are crucial for Kosovo's economic progress. This book offers practical insights for Kosovo's investment landscape. With the right policies and commitment to growth, Kosovo can realize its economic potential. Strategic FDI can pave the way for a prosperous future, fostering private sector growth and economic development.