THE IMPACT OF FOREGIN DIRECT INVESTMENT (FDI) IN STOCK MARKET DEVELOPMENT IN SAUDI ARABIA

Abstract

This paper expects to explore the effect of Foreign Direct Investment (FDI) on money markets improvement in Saudi Arabia. The Question to be reply: Is there a relationship amongst FDI and Stock Market capitalization esteem in Saudi Arabia? Would we be able to consider FDI as supplement of Saudi Stock Market? The significance of study being that that the outcome will decide the directional relationship moving from the Stock Market to monetary development and to adjust steps that can be taken by government to enhance FDI strategy in Saudi Arabia. The examination depends on auxiliary information for the period 1990-2012. Relapse model and connection is utilized for inspecting the relationship of Market Capitalization of Saudi Stock Market, FDI and monetary development in Saudi Arabia. The outcomes bolster the positive relationship of FDI in boosting the total securities exchange improvement, it demonstrated a critical measurable connection among FDI and total market capitalization accordingly mirroring the correlative job of FDI in the stock exchange advancement of Saudi Arabia