Determination of FDI in Saudi Arabia

Determination of FDI in Saudi Arabia

Brief Background

Saudi Arabia is the biggest free-market finances in the Middle East and North Africa, accounting for 25% of total Arab whole household product. Its position presents very easy get access to trade items markets in Europe, Asia and Africa while it has a relentlessly increasing household market (annual community development of 3.5%), which is supplementing to a juvenile and consuming community with powerful buying power. (Balasubramanyam 2008)

Saudi Arabia has an outstanding record of political and financial steadiness and has a up to date, world-class infrastructure. The investment natural environment reflects customs of liberal, open market personal enterprise principles and investment regulation permits 100% foreign ownership of tasks and genuine estate. There are no limits on forex and repatriation of capital and profits. It is amidst the couple of nations to permit businesses to convey ahead deficiency indefinitely - competently reassuring enterprises of their levy problem until they become profitable. It does not enforce individual earnings tax; and work charges in nearly all localities are low. (Balasubramanyam 2008)

Saudi Arabia is furthermore pledged to expanding personal part participation in financial development and a owner of parts are being opened to the personal part, with telecommunications, electrical power, airlines, postal services, trains, dock services and water utilities all promise localities for investment. It has the world's biggest oil reserves (25%) and has other natural assets, encompassing bauxite, limestone, gypsum, and phosphate and metal ore. (Alfaro 2004)

Research Questions

Q: What are relative important of FDI factors in the Saudi industries

The main question is broken into sub-questions to clarify the purpose of the research as follow:

Q1: What are the relative important of cost factors on FDI decision in the Saudi industries?

Q2: What are relative important of Market factors on FDI decision in the Saudi industries?

Q3: What are relative important of infrastructure and technological factors on FDI decision in the Saudi industries?

Q4: What are relative important of political and legal factors on FDI decision in the Saudi industries?

Q5: What are relative important of social and cultural factors on FDI decision in the Saudi industries?

Contribution

The investigator will use review to check the hypothesis and will be dispatching to businesses enlist in FDI in the Saudi Industries to work out their position components priorities. The facts and numbers for this study will be accumulated utilising a questionnaire, from Petrochemicals FDI functioning in Saudi Arabia. Saudi Investment Authority (SAGIA) notes all foreign equity projects functioning in Saudi Arabia. SAGIA will presents the title, address and data about the Petrochemicals FDI functioning in Saudi Arabia and comprises the general community of FDI, total paid-in capital percentage of foreign equity share retaining, position of the investment, homeland of source and application date.

The titles and communicate address of head boss agents (CEOs) and General Managers of each foreign colleague will be amassed from SAGIA, the questionnaires will be hand over to the respective recognised companies. We foresee round 60% will be answered and took part ...