The Implications of FDI and BITs in Saudi Arabia

Abstract

Oil has been the basis of the Saudi Arabian economy, but as time has passed this dependence has created issues for the nation such as the instability of oil prices, hence it has become necessary for an alternative income. In 1970, the Government launched a development law system that aimed to improve and develop its economy. The post-globalization would prove a better foundation for the Government’s ambitions as international interest in Foreign Direct 1 investors(FDI)development. Makingwayforthis,considerablechangesweremadetoSaudi Arabia’s existing legal framework, with the Foreign Capital Investment Law of 1979 (1979 Law) which recorded huge failure to attract foreign investors being replaced by the Foreign 2 Investment Law of 2000 (FIL). The new law of 2000 FIL solves most of the previous law issues. Nevertheless, the creation of new law did not solve the whole previous law issues and many new issues were raised which will be discussed in the chapter three.