Saudi Arabia new investments model under the vision 2030 and its role in attracting direct foreign investment

Abstract

Foreign direct investment is of global importance from an economic point of view. It works to increase the flow of capital in the host country, transfer the necessary expertise to revitalize a specific investment or industrial sector, and helps countries, especially developing countries, develop areas in which they need global expertise and external support. The Kingdom of Saudi Arabia realises the importance of foreign direct investment to support its national economy and achieve one of the most important goals of its Vision 2030 to achieve an economy that is not dependent on oil imports. Therefore, the Kingdom has begun to develop its investment systems. This is to amend the old laws that did not prove their actual effectiveness in attracting foreign investment and the fact that foreign investment varies with oil prices, which poses a dilemma for the Saudi national economy. Nevertheless, the Kingdom of Saudi Arabia has put forward the new draft foreign investment law to encourage foreign investment. However, the major problem facing the new Saudi investment system project lies in evaluating its ability to achieve the highest standards of attracting foreign liquidity and providing an attractive climate for foreign direct investment (FDI) in a way that repels fears. Foreign investors, in the face of the necessity of controlling foreign investment in the interest of the public interest. Accordingly, some investment principles approved by the investment system project must be analysed, such as equality and non-discrimination between investors, freedom to conduct private business, financial incentives, investors' responsibility, confiscation of funds, and resolution of investment disputes by arbitration. comparison of the regulatory vision of investment in the Kingdom by analysing the World Bank's guide to foreign direct investment to clarify the legislative objectives and the fundamental differences to arrive at a result and an evaluation vision for the investment system project in the Kingdom and then provide organizational solutions to the problem of conflict between attracting and disciplined foreign investment in order to keep pace with Kingdom vision 2030.