This thesis provides an empirical indication of how the objectives of official development assistance (ODA), granted by the top five donors, affects the aid policy in the MENA region during the period 1990-2012, and how these objectives have changed during the period 2005-2012. As a first result, alleviation of poverty, commercial interests and the democratic status of the recipient altogether influence aid policy in the region. Recipients’ need and commercial interest are both important objectives for the donors but they have both lost some of its impact in recent times. Historical ties with France affect the aid policy in the region and strategic interests of the donors appear to have an unexpected effect on aid allocation behavior e.g. oil rich countries receive less aid, ceteris paribus. The democratic status of the recipient has a positive significant effect on received aid for the average recipient and the impact has increased with time in the MENA region. Moreover, donors react differently to recipients’ needs, commercial interest and democracy and there are also several differences among recipients with abundant oil resources and those with insignificant oil resources.