How Saudi Arabia attracts added value investment under the volatile global economic conditions and the COVID-19 pandemic?

Dr. Nasser Alshareef

Dr. Nasser Alshareef College of Business Administration in Majmaah, Majmaah University 11952, Kingdom of Saudi Arabia

Keywords: Foreign Direct Investment (FDI); Covid-19 Pandemic; Kingdom Of Saudi Arabia; Capital Investment.

Abstract

International capital flows are primarily facilitated by foreign direct investment (FDI). The study employs display research to investigate how to draw value-added FDI in the face of turbulence along with the global economy and the COVID-19 pandemic to the Saudi Market. These findings have led to an important mode of foreign direct investment, so they are extremely important as compared to previous studies. The findings reveal that trade openness, infrastructure availability, and market size all play a role in attracting foreign direct investment into a region. Foreign direct investment can be beneficial to both investment companies and host governments. Furthermore, the COVID-19 shock will amplify the current worldwide trend of shortening supply chains and reducing FDI growth. This is a critical juncture that the Saudi government should be encouraged to develop strategies that would lessen the economic impact of such changes on the host country.

It also aids the country's economic development and socio-economic transition. Several factors influence Saudi Arabia's ability to attract foreign direct investment, including growth rates, GDP, exports, and imports. During the Covid-19 pandemic, the government must ensure that the nation remains attractive in order to retain maximum foreign direct investment flows, as this encourages long-term economic growth by rising human capital investment. Therefore, in the face of tumultuous global economic conditions and the COVID-19 pandemic, attracting foreign direct investment can become a source of economic dependency and technology transfer diversification within the Kingdom.

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