FDI Admission in Saudi Arabia

Abstract

FDI has been a highly regarded entity within the Saudi policy after the 2030 vision reformation plan, which gave the FDI a particular importance. Saudi Arabia aims to attract more FDI in the future in order to diversify its economy. However, its current attitude reflects a reserved and selective approach to FDI, which will not be sustainable for future developments that aim to achieve economic diversification. Thus, a serious reformation to the legal climate in the Kingdom in general, and FDI in particular is crucial. This research examined the FDI admission process in Saudi Arabia to evaluate current implications and identify places for improvement. The new companies’ law project should be put into effect as it covers most of the legal gap evident in the current companies’ law. An immense need for legal review was identified in the 100% foreign ownership limitations. Reformation is needed in the admission process due to bureaucratic procedures and efforts to coordinate MISA licensing with other relevant licensing. However, this research excluded the FDI admission process in the financial sector, due to time and space limitations.