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Volume 1 Issue 5 Paper 1
A review of the factors affecting FDI inflow in Saudi Arabia: A focus on the non-oil sector
Marwan Mahfoodh Kadi
University of Newcastle, Australia
Abstract
The aim of this review was to gain insights into the factors affecting FDI inflow in Saudi Arabia, especially, in the non-oil sector. The literature relevant to the aims of this study was searched using the keywords, “Saudi Arabia”, “FDI”, “Factors”, and “Non-Oil”. A total of 5 papers were reviewed to address the aims of this research. A review of the relevant literature came up with the following findings and recommendations:One of the factors affecting the FDI inflow in Saudi Arabia is the attitudes of the managers and enterprises towards FDI. Encouraging a more positive attitude towards FDI can be beneficial for the Saudi government.; The size of the source country, the distance of the source country from Saudi Arabia, and high per capita income of the source country were found to be important determinants of the FDI inflow in Saudi Arabia. Saudi Arabia can strategically target such countries to encourage more FDI inflows.; Government expenditure is another driver of FDI in Saudi Arabia. Higher levels of government expenditure will translate to more FDI inflows in the country.

Keywords: Saudi Arabia, FDI, Factors, Non-Oil

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