Analysis reveals how economic growth and governance influence foreign direct investment in Saudi Arabia, implying important policy considerations.
This study examines the factors that influence Foreign Direct Investment (FDI) in Saudi Arabia, using data from 2002 to 2022. It focuses on seven key variables, grouped into three categories: economic factors, human resources, and governance. Six different models are used to assess these factors. The results show that both economic growth and population growth positively and significantly encourage FDI. On the other hand, trade openness, exports, and strict regulations have a negative and significant impact on FDI. These findings suggest that promoting economic and population growth, while reconsidering trade and regulatory policies, is important for increasing FDI in Saudi Arabia.
No takes yet. Share an insight, caveat, or question.
Baaboud et al. (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: