Investigating the factors influencing foreign direct investment in Saudi Arabia

This study examines the factors that influence Foreign Direct Investment (FDI) in Saudi Arabia, using data from 2002 to 2022. It focuses on seven key variables, grouped into three categories: economic factors, human resources, and governance. Six different models are used to assess these factors. The results show that both economic growth and population growth positively and significantly encourage FDI. On the other hand, trade openness, exports, and strict regulations have a negative and significant impact on FDI. These findings suggest that promoting economic and population growth, while reconsidering trade and regulatory policies, is important for increasing FDI in Saudi Arabia.