Policy and Regulatory Frameworks for Foreign Direct Investment in Saudi Arabia

  • Ahmad Al Daffaa
Part of the The Political Economy of the Middle East book series (PEME)


This particular study aims to tackle the growing significance of Outward Foreign Direct Investment (OFDI) and its relationship with Foreign Direct Investment (FDI) and fill the gap in the literature by focusing on the dynamics and procedural frameworks of the OFDI from Saudi Arabia and revealing its motivations and the impact of this business activity upon the economy. Foreign investment law was the establishment of an administrative authority in Saudi Arabia which has the function of regulating, managing and controlling foreign investment. This administrative authority is called the Saudi Arabian General Investment Authority (SAGIA) (Foreign Investment Law of 2000). SAGIA has the exclusive remit to regulate only Inward Foreign Direct Investment (IFDI). OFDI, once a phenomenon connected with the developed countries, is now a growing trend in the developing countries. The Kingdom of Saudi Arabia is one of those countries where increasing OFDI is being undertaken. The diversification helps countries in attracting FDI through allowing private sector investors to invest in non-oil sectors or industries. However, the regulatory instruments of privatization are one of the important elements in Saudi Arabia. A qualitative approach is followed where case studies of regulators, policymakers and firms, with international involvement from Saudi Arabia, have been employed.


Inward FDI Outward FDI Privatization Diversification 


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Copyright information

© Gulf Research Centre Cambridge 2018

Authors and Affiliations

  • Ahmad Al Daffaa
    • 1
  1. 1.University of HullHullUK

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