Economic Liberalization: Globalization, Privatization and Foreign Direct Investment

Abstract

In the new millennium, the Kingdom of Saudi Arabia has set itself the objective of reducing the economy’s vulnerability and heavy dependence on oil market fortunes, and has opted for decentralized, private market-based economic activities (Auty, 2001). The Kingdom aims to achieve this through a three-pronged approach. First, Saudi Arabia will join the World Trade Organization (WTO) to enable a bigger Saudi world market share. Second, it will initiate a domestic programme of the privatization of core Government services. Finally, Saudi Arabia will use Foreign Direct Investment (FDI) to foster technology transfer and domestic economic stimulus (Najem, 2003).