Determinants of Foreign Direct Investment in the Industrial Sector: An Analytical and Applied Study on Saudi Arabia.

Document Type : Original Article

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Faculty of Law - Mansoura University

Abstract

This study examines the determinants of FDI in the industrial sector in Saudi Arabia, an economy that is rapidly diversifying away from oil dependence. The research analyzes the key factors influencing FDI inflows, including economic stability, regulatory frameworks, and quality of infrastructure. Data were obtained from a survey as well as interviews with industry experts. The results revealed that while economic stability and a favorable regulatory environment are the primary drivers of FDI, other factors such as availability of skilled labor and strong infrastructure significantly enhance the attractiveness of the industrial sector. This study contributes to the existing literature by providing a comprehensive analysis specific to the Saudi context, and offering insights to policymakers and stakeholders to promote FDI as a means of achieving sustainable economic growth.

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