Revisão do Jornal Árabe de Negócios e Gestão

The Dynamics of Foreign Direct Investment in Economy of Saudi Arabia

Abstract

Mohammad Naquibur Rahman

The present research paper is to investigate the futuristic dynamics of resurgence of the economy of Saudi Arabia in the wake of the introduction of Foreign Direct Investment (FDI) creating high impact particularly on GCC countries and generally on the world. It is strongly believed among the economists of the world that FDI is the irreversible impact of globalization and liberalization in the 21st Century. It goes without saying that the impact of FDI can be measured through the economics tools. Rather than while dealing with this subject, other factors also affect the behavior of economic dividends in the process of implement the FDI especially infrastructure of the country, geo-political position of the country and its clout over the world’s financial institutions apart from domestic governance of the country. The very FDI plays a very significant role in ensuring the behavior of Gross Domestic Product (GDP) of the country, taking the country towards trade surplus destination and removing unemployment by creating jobs. The main conclusion of the study sheds light over the inflow of FDI and determining the GDP and taking Saudi Arabia towards balanced trade players in the world.