The impact of governance on foreign investment in the Kingdom of Saudi Arabia and achievement of Vision 2030

Abstract

This study examines the possible contributions of governance on foreign direct investment (FDI) development in Saudi Arabia. The premise is that a positive governance climate in the region will increase FDI due to regulatory and ease of business factors, among others. The findings of the study demonstrate that a significant, robust model between the two indicators can be achieved; especially with the inclusion of Public Investment Fund (PIF), oil resources and trade. There is evidence that the model has meaningful implications for building confidence in the process of achieving economic diversification in Saudi Arabia, as envisioned in Vision 2030. In support this study, further policy evaluations should be sought, engaging with experts and direct influencers to examine which additional environmental factors must be considered to create a favourable governance framework that can enhance FDI development. Keywords: governance-led FDI, PIF, KSA, Vision 2030, economic diversification.