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The Impact and Contribution of FDI to Saudi Economy During King Abdullah Regime

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  • Khaled Jadeaf Alanazi
  • Salawati Mat Basir

Abstract

Foreign Direct Investment resulted in the disclosure of different investment chances and opportunities through active investment promotion agencies. A country must execute various reforms capable of improving the fundamental determinants of FDI for achieving a high percentage of Foreign Direct Investment. These reforms among others include improving investment laws, reducing political risk and level of corruption, establishing a consistent legitimate and regulatory environment, freeing repatriation of funds and capital, as well as opening up to international trade. Saudi Arabia adopted generous incentive policies for attracting foreign capital and invite Foreign Direct Investment during king Abdullah regime. These policies present positive incentives while eliminating negative disincentives. Positive incentives consist free custom duties, reductions of tax and export zones, by the government of Saudi Arabia. Disincentives elimination to investments indicates the removal of overlong and rigid systems as they can delay visas issuance, restraint travel and complicate the licensing and registration of a project. This paper discusses the impact of FDI on Saudi economy during King Abdullah regime and finally, ascertains the contribution of FDI to Saudi Economy during King Abdullah regime.

Suggested Citation

  • Khaled Jadeaf Alanazi & Salawati Mat Basir, 2020. "The Impact and Contribution of FDI to Saudi Economy During King Abdullah Regime," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(6), pages 37-45, December.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:6:p:37-45
    DOI: 10.5430/ijfr.v11n6p37
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    References listed on IDEAS

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    1. Peter Egger & Mario Larch & Michael Pfaffermayr & Hannes Winner, 2006. "The impact of endogenous tax treaties on foreign direct investment: theory and evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(3), pages 901-931, August.
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