• Luluwa Juma School of Business, Skyline University College, Sharjah, UAE
  • Hannan Alkharoossi School of Business, Skyline University College, Sharjah, UAE
  • Manuel Fernandez School of Business, Skyline University College, Sharjah, UAE



FDI, Investment Decision, Saudi Arabia, Investor-Friendly Destination


This study aims to identify the status of Saudi Arabia as a destination for FDI, the factors that attract FDI into Saudi Arabia, and the factors that hinder the flow of FDI into Saudi Arabia. The study covers a period of five years from 2015 to 2019. The study analysis various determinants of FDI: market size, infrastructure, technology adoption, innovation friendliness, productive and diversified labor force, financial infrastructure, taxation, political risk, corruption, and ease of doing business.  The study finds that several factors like market size, well-developed infrastructure, a higher degree of technology adoption, innovation-friendliness, the banking system that is well-capitalized and liquid, low corporate taxes, political stability, low transfer risk, low expropriation risk, low levels of corruption, and a stable currency make Saudi Arabia an attractive destination for FDI. At the same time, the low labor market efficiency and the low ranking in ease of doing business makes it less attractive to FDI.


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How to Cite

Juma, L., Alkharoossi, H., & Fernandez, M. (2021). FOREIGN DIRECT INVESTMENT IN THE KINGDOM OF SAUDI ARABIA: A DIAGNOSTIC ANALYSIS. International Journal of Research -GRANTHAALAYAH, 9(8), 355–367.