This publication, is based on an empirical study and country experiences to assess how gains from natural resources in general, and FDI in particular, that have contributed in the improved economic growth, per capita income and government revenue in the MEFMI region. The natural resource curse puzzle, which focuses on why massive investment in mineral resources in some countries has not been effectively translated into wealth that gravitates to sustained economic growth and development, is empirically examined whether it exists. The potential channels and transmission mechanisms underlying this paradox of plenty are also explored. This intensive assessment is expected to inform policy makers and ensure that MEFMI resource rich countries do not fall prey to the natural resource curse, but through strong institutions, the resource rents are used to promote socio-economic development. It further provides theoretical and empirical foundation, and supportive policy recommendations for aiding MEFMI member countries with tools for effectively harnessing the developmental impact of natural resources in their countries.