Role of foreign direct investment – As a strategic move towards growth, economic integration and development

Kingdom of Saudi Arabia with its developed economy and advanced technological infrastructure has shown a major progress in business opportunities for overseas investors. Saudi Arabia’s education sector is one of the most attractive investment opportunities for the foreign investors Earlier in 2019, 9 new foreign education enterprises were granted investor licenses, amounting to a total of $141mn of investment deals. The Saudi government introduced Saudi Vision 2030, an aspiring development plan that foresees vital prospects for foreign investors in the regions of education, housing, health and energy, amongst others. In 2016, Saudi Arabia permitted the procurement of 100% of assets by foreign investors in retail and wholesale trade. A privatisation program has also been introduced. The government also attempts to attract FDI in the regions of renewable energy and entertainment. A foreign direct investment (FDI) plays a vital role in local and international economy. Several opportunities and ventures are encouraged by Saudi Arabia to improve the standard of business and economical environments. To accomplish the finances for the projects SAGIA, the lawful authority is there to smooth the progress of investments, which encourages Saudi FDI prospective to grow simultaneously. FDI has a greater scope for diverse businesses and investing in to underdeveloped industrial sectors. FDI plays an important role in boosting the economy of Saudi Arabia by managing international investors who shares the huge portion of 34% in General GDP (Gross domestic product) of Saudi Arabia. This paper aims to review the literature to shed light on the steps taken by the government to increase FDI in the country and what are the current trends that are helping to fulfil VISION 2030.