IMPACT OF FOREIGN DIRECT INVESTMENT (FDI) ON SAUDI ARABIA’S ECONOMY

Abstract

Foreign direct investment (FDI) is an investment by a party in one country into a business or a corporation in another country with a view to establishing a sustainable interest. Lasting interest differentiates FDI from foreign portfolio investments, where investors passively hold foreign country securities.  In addition, FDI has an impact on the economy of a country. Thus, this work was done to examine the relationship between FDI and economic growth in Saudi Arabia.  This work was carried out using quantitative research method. The sample populations for this work were owners and executives, from the finance sector and firms in Saudi Arabia. The sample size used in this work was 122. Data collection was done using survey method. The results were analyzed in terms of basic percentage statistics. The findings of this work have shown that the current financial and economic crises in Saudi Arabia indicate the importance of foreign direct investment. In addition, the results have shown that the result have shown that FDI had an effect on Saudi Arabia's gross domestic product (GDP).

CCS Concepts

• Information systems➝Database management system engines   • Computing methodologies➝Massively parallel and high-performance simulations.