The problem statement explains the positive impacts of "foreign direct investments" in the KSA thereby analysing the impacts of foreign investment on Saudi Arabia. It has critically focused to examine various political, economical and socio-cultural factors which have influenced the financial growth of Saudi Arabia. This describes the issues which this research seeks to address. Due to a significant advancement in modern technology, direct investments have undergone playing key roles to fill the resource gap between the "targeted and desired investment" thereby locally mobilising the savings. FDI has therefore contributed enough in filling the gap between the requirements of "targeted foreign exchanges" along with those serving from "net export earnings added with net foreign aid".
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The key term used in this paper is "foreign direct investment" FDI is the category concerning "cross-border investment" where the investor residing in an economy establishes a "significant degree of influence" over another economy. The determinants of "foreign direct investment" refer to factors which outline the "rate of controlling the business ownership" by an organisation in one economy other than its home economy. KSA refers to "The Kingdom of Saudi Arabia" (Saudiembassy 1). Other terms like economic growth explain an increase in "quantity and quality" concerning "economic goods and services" which is produced and consumed by society. Economic growth can be projected at the time when people start to realise and use the available resources as they arrange them in a significant manner thereby making them more valuable.
Chapter 2: Background
Current issues and historical issues
The FDI in Saudi Arabia is approximately 3725.40 million USD from "2006 until 2022" and in 2022 alone the FDI in KSA increased by 1.9 billion USD compared to the previous quarters (Tradingeconomics 1). This is greatly affected by factors like GDP, exports, imports and growth rate. Along with this, the injunction of subsequent levels of FDI has resulted in being a major player to stimulate the growth potential as well as providing stability to the KSA economy. The requirement of achieving FDI in Saudi Arabia had been made to meet various internal and external factors where internal factors mark business expansion, increasing "economies of scale" and risk diversification. The external factors are achieving recess resources and increasing the economic GDP thereby facilitating the country's capabilities.
Expected outcomes
The expected outcomes from this research will help in achieving the aim of this paper that assesses the impacts of FDI in Saudi Arabia depicting how the country derived benefits from such actions. It also evaluates a detailed study of FDI benefits and significance for prospering economic growth. The research findings had been expected to project a positive correlation between the type of foreign investments made and the impacts of foreign investment on society to highlight the benefits derived by KSA.
Chapter 3: Literature review
Globalization and foreign investment
Foreign investment (FI) can be identified as the investments made within domestic companies as well as assets of an international country by any foreign investor. Large-scale multinational companies generally seek new opportunities for promoting economic growth by establishing branches along with the expansion of investments in international countries. Foreign investment can get broadly segregated into two distinctive categories namely "Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII)". "Foreign direct investment" refers to a category concerning cross-border investment where the investor residing in one country thereby establishes lasting interests within and projects significant degrees of influence over a company established in another country. As per the suggestions of Contractor et al. (3), "foreign direct investment" helps to create new job opportunities and improves the technology of an economy by improving the economic infrastructure.
A "Foreign Institutional Investor (FII)" is identified to be an investor within the financial market investing outside its home country officially. They can involve pension funds, mutual funds and hedge funds. Foreign investment projects advantages by stimulating significant economic development which can be proclaimed as the "primary source of external capital" and helps increase revenues for an economy. Foreign investment is different from capital investment which includes provisions of technology, equipment and management. As mentioned by Udemba and Yalç?nta? (16), the key characteristic of FI is that this establishes "effective control of the foreign business" having a minimum substantial influence over the decision-making. The factors which affect foreign investment are lower wages, "special investment privileges" like tax exemptions, a fast-growing customer base and the "conductive business environment" thereby attracting foreign companies.
Figure 1: Factors of “foreign direct investments”
Globalisation refers to the process with help by which goods and people can implement easy transfer across economic borders. On the economic concept, globalisation refers to an integration of trade, investment and markets project few barriers generating a slower flow of "products and services" between countries. In a world of rising competition, globalisation helps drive the prices down thereby creating a greater variety of choices for global customers. These lower costs benefit the people in maintaining a "high standard of living" in both developed and developing countries. As per the viewpoint of Yende (2), globalisation increases the quantum of international investing as this process compels connections between economies for the continuation of investment in each other.
This initiative, therefore, helps in protecting economic health as well as acquiring new percentages of profit generation and companies benefit from the projected pricing differences, known as arbitrage, within the diverse labour and goods supplies market. Increased globalisation opens a country to the "eager foreign companies" which seek to invest along with operate within the potential countries. The bosted "foreign capital inflows" are both projected from "portfolio investment and foreign direct investment", greatly affecting a country and its citizens. Globalisation can get characterized by the growth projected in the internationalisation of local "goods and services" thereby facilitating the growth of foreign investment. In the context of globalisation, foreign investment denotes that all foreign investors project their active roles in management as a portion of their capital-funded or equity stakes is big enough to enable the investors in influencing the business strategy.
Figure 2: Globalisation and international trading
Role of foreign investment plays in the local economies
Foreign investment plays a significant role in an economy as its concept is inclusive of multiple advantages which impact a country and its people. FDI helps in bringing financial resources to promote economic development. At times, in developing countries, the sectors are incapable of allocating subsequent resources which are essential for the froth of the economy which is why FDI becomes a major popular option to generate economic development. However, foreign investors conduct thorough research before selecting the potential economy in which they wish to invest in and can gain subjected profits in future. "Foreign direct investment" brings in the countries, new technologies along with significant skills and subjected knowledge to literate the local economies.
The injection of new technological advancements promotes successful attainment which also gets enhanced with the generation of better skills and allocation of the knowledge base for the people of the countries invested. This in return helps in the generation of better and more successful job opportunities for the citizens of the countries as the human capital is enhanced. The people come to learn with better skills which make them efficient for the labour market and eligible to compete in the global market or better situation within their own country thereby facilitating the technological sectors and progress others as well. Based on the opinions of El-Awady, Al-Mushayqih and Al-Oudah (14), FDI advantages in bringing a more "competitive business environment" within a country enabling it to compete with other potential organisations in the world market and generate facilities from the global business environment. This helps the companies in achieving better resources to result overall successfully by involving greater capital bases that are essential for projected benefits.
Figure 3: Pros and cons of FDI
The context of foreign investment benefits the local economies by influencing employment for projecting economic boost where "foreign direct investment" creates better job opportunities as the investors construct new corporations in the foreign lands. This can probably lead towards increasing the income along with more "purchasing power" for the locals that in return leads to the overall boost within the targeted economies. "Foreign direct investment" in the KSA has critically contributed to oil exploration along with refining for the establishment of the petrochemical and oil conglomerates ARAMCO and "Saudi Arabian Basic Industries Company (SABIC)" recently.
In the KSA, FDI contributed to developing the infrastructure and the banking industry as this became an essential cornerstone for supporting the "economic diversification in Saudi Arabia". As mentioned by Aljehani and Shaheen (1185), the flow of "foreign investment in Saudi Arabia" has been critically affected by multiple factors which involve "gross domestic product", growth rate and "exports and imports". Furthermore, it can be highlighted that foreign investors can experience the advantage to set up a business in KSA (Saudi Arabia) with tax benefits, a pleasant environment, a broad economy, innovations, high "standards of living", safety and security. The "Saudi government" has worked towards encouraging foreign investors for investing in KSA thereby putting the regulations in place along with controls for the "foreign investor" to ensure that their projected desired goals can be achieved by preserving investors' rights.
Figure 4: FDI values in Saudi Arabia in the last 10 years
Impact of foreign firms on local investors
The impact of foreign firms on local investors has been analysed based on the required valuation of foreign direct investment (FDI). Foreign direct investment has been the crucial part that has implicated analysing the required effect on foreign firms in an appropriate way. Foreign firms have generally wanted to explore their business in the local area and it can be implied with the major changes in the work that is completely related to the local investors in an appropriate way. Based on the research work of Al-Gamrh et al. (209), the foreign firm brings the FDI that makes implication reducing the overall capacity of the local investor in terms of exploration and creating a major effect on the entire work development into the market. On the other hand, FDI has plates a required and crucial role in terms of changing the economic growth in the Saudi Arabia market. Saudi Arabia has main;y used both “favourable and unfavourable factors” at the time of taking consideration of the FDI in the market.
Major changes in the market of Saudi Arabia have been analysed due to the development of the Foreign firm by using FDI as it has executed major code for foreign investment with the similar benefit for the guaranteed offer, benefit and incentives as well. The use of those changes for the foreign firm has critically affected the work potential of the local investor. Local investors in the country do not have the required benefit in terms of the guaranteed offer on the investment and creating reflect over instability in the profitability in an appropriate way.
Figure 5: Impact of FDI on employment
The local investors, in this case, critically focus on the investors in KSA or Saudi Arabia, to discuss for projection of the impact of the foreign firms on the local investors. Based on the previous discussion it can be projected that foreign investment causes serious negative effects on domestic companies. This takes place if these foreign investors try to squeeze the domestic producers from the local marketplace and focus on becoming monopolists. The damages presented can be outlined for the "payment balance of the host country" due to higher outflows of profits generated by the investors conducting larger import of required inputs. Investments taking place by foreign firms enter the local marketplace with newer products and technologies thereby having multiple disadvantages of FDI concerning local businesses.
The cons of FDI include situations where new products arrive at much lower prices than the local market and therefore force the local businesses in lowering the prices. This also forces in recognising the operations "in terms of cost". Therefore, FDI can be identified as a threat to local investors by disrupting local industries as there are concerns. FDI might disrupt the local industries as well as the economies to attract the best human capital to create income disparity. In this case, the local investors help to start and expand businesses to create jobs and increase properties within the communities.
Social and cultural impact of foreign firms on local communities
The Social and cultural conditions in the community of Saudi Arabia has influenced by "foreign direct investment". Cultural diversity and ethical guidelines have been different in various countries which have influenced the society of Saudi Arabia. The “engagement and participation” of “customers and stakeholders” of the local community have been influenced by inflows of FDI inflows in the market. The economic and marketing growth of the local community of Saudi Arabia has been stimulated by direct and indirect FDI from foreign firms. As per the reference of AlQahtany (15), the culture in Saudi Arabia has been conservative and traditional that has different from foreign firms, this has created cultural barriers to the growth and development of the foreign economy. As per the argument of Al-Tit et al. (12), the “local community” of Saudi Arabia has focused on sharing cultural values, loyalty and a “strong moral code,” this has avoided the cultural barriers in front of foreign firms to operate. The approach of foreign firms to profit maximisation has created disinterest among society to engage with the companies.
Stability in the employment rate has been created in the community after the effective engagement and participation of foreign firms in financial affairs. The engagement of foreign firms has influenced the rules, costumes, beliefs, employment and language of the local community. The social tradition, manners, practices and obligations of Saudi Arabia has affected by the entrance of foreign firms from different societies and cultural backgrounds. The commercial disputes between the employees, customers and management with cultural differences have negatively impacted the existence and survivability of the foreign firms in the community.
The existence of nepotism in the country has constrained or restricted foreign investment in a negative way. As per the reference of Chandran and Abdullah (1565), the opportunity of the getting employment and improve the cultural and social condition in the country after the participation of foreign firms. The GDP of the country will be expected to grow by 4.44% in 2026 due to an increase in foreign investment in the local community of Saudi Arabia (statista.com, 2022). As per the argument of Ababio (171), FDI has hindered domestic investment this has reduced the sales of domestic products in the country. This has negatively affected the export revenue of the community due to the excessive existence of foreign firms.
The issue of cultural distance between the host and home country has been outlined due to the existence of foreign firms in the Saudi Arabia community. The priority of society towards the consumption of more foreign products has negatively impacted the social environment of the local community. As per the opinion of Do et al. (292), the participation of foreign firms in KSA has positively developed the financial and non-financial sectors of the local community. As per the argument of Jamil and Dutta (1384), the participation of foreign firms has thrown out domestic firms of competition. Cultural factors have affected the vulnerability of mental disorders in improving financial and health proficiency in the market. The inflation rate in the country has been influenced by the effective existence of foreign investment in KSA.
Challenges faced by foreign investors in foreign countries
The issue of “higher transaction costs”, and “currency volatility and liquidity risk” has been outlined in an economy after the participation of foreign investors. The issue of different trade policies and values of foreign currency has created issues in investment frequency and assurance of foreign investors. As per the suggestions of Jurayevich and Bulturbayevich (2), the discrimination approach and attitude of local government towards foreign firms have created issues in economic growth. In addition to these issues, some major issues have created restrictions on the engagement of foreign investors in participating in the local community of KSA. The government's “influential barriers, border barriers, technical trade barriers” and diversified business environment has created an issue for the “foreign investors” in the market. The frequent variation or diversification in the interest rate and inflation rate has restricted the assurance and faith of foreign investors in the economic condition of the local community. This has created scarcity in FDI due to the unstable “financial and monetary market” of the country.
The “uncertainty and risk” in the foreign market have created risks in getting expected or healthy returns from investment. As argued by Sabirov et al. (1965), “foreign direct investment” has effectively assisted the transferability of “skills and resources” from the foreign economy to the local economy in the market. The issue of excessive transportation and communication cost has created issues in the interest of foreign investors to make investments in the firms of the country. The language and cultural diversity in the local and foreign markets has created issues of language and cultural diversity in FDI. As per the overview of Fan and Hao (599), the restriction on export and import regulations has created investment barriers for foreign investors in an economy. The lack of transparency in sectored policies of the local market in the context of FDI has created obstacles to the availability of foreign investments in the selected economy.
Figure 6: Challenges in foreign investment
The trade barriers have been created after diversification in the regulations of tariffs, quotas, subsidies and trade licenses in FDI. The three specific obstacles and barriers in foreign trade are “tariff barriers, non-tariff barriers” and natural barriers. As per the reference of Evenett (830), the natural barrier has been considered the “distance transportation, social and cultural issues” due to diversification in a local market compared to foreign markets. The ineffectiveness of trade agreement negotiation has been created due to language and cultural differences in the market. Furthermore, the tariff barriers have restricted the operation and investment of foreign firms and investors. The tariff on “goods & services” has been charged by the local government the difference in the tariff rate has created tariff barriers and restricted foreign investment in the KSA market. The variation in import quotas and other taxes other than tariffs has restricted the assurance and investment of foreign investors in the market. The diversification in customers’ tastes and preferences has created restrictions on foreign investment in the market.
Local culture and how it shapes the operations of foreign firms
Culture is one of the essential factors in international business as it can effectively influence the interaction worth the team that is based on the "multinational and cross-cultural teams". Collaboration with foreign businesses has been affected if the company does not have the appropriate way to deal with different cultural clients or businesses in an appropriate way. On the other hand, local culture has the required estimation for performing their work with the proper collaboration with the foreign market as well. As per the view of Sian et al. (84), the local culture has played the required role in terms of shaping the overall work operation of the foreign firm in the local market. The valuation of the adequate culture and demand of the consumer has been effectively evaluated by the foreign firm by using the appropriate local cultures.
The use of the appropriate culture influenced changes in the work by making changes in the business work “values, etiquettes, thinking patterns, decision-making, practices, and processes”. The evaluation of the appropriate availability in terms of the values and work process at the business is effectively managed with the proper valuation of the local culture by the foreign business (Alanezi et al. 25). Work values and decision-making power has been effectively increased with the appropriate valuation of the goal based on the analysis of the cultural factors in an appropriate way.
The influence of the local culture on foreign business is extensive as it can help in accumulating the required work process of the employees. As opined by Zakaria et al. (12), it can help in accumulating the major way and capacity of the employee in terms of managing their work values and priority at the workplace in an appropriate way. On the other hand, local culture can also influence the work area of “sales, marketing and distribution” based on the configuration of the market. The valuation of local culture is the adequate factor that can help the foreign business in taking the decision to enter the market and conduct adequate work operating with the preparation of the plan. A lack of understanding of the local cultures can influence the work operation as it cannot have the appropriate information about understanding the market. It can influence consumer demand and proper consideration of taking the effective decision for business as well.
Culture has the required effect on conducting the work operation and in that case, it has required considering major factors such as “time sensitivity and negotiating attitude”. As per the reference of Dousin and Sulong (135), the consideration of those aspects in the foreign market can effectively help in taking the proper step to operate work in an appropriate manner. Time sensitivity in the market can imply to evaluate of the effective changes in the entire work operation in the foreign business in an appropriate way.
Foreign firms in Saudi Arabia and their history
The valuation of the required foreign firm in Saudi Arabia has a major implication in analyzing the required insights into "Saudi Arabia’s foreign investment regulations and policies''. Based on the research work of Muzafar et al. (45), the valuation of the required state in terms of analyzing the foreign investment has created an impact on the exploration of the foreign firm in an appropriate manner. The use of the appropriate data valuation in terms of accumulating the policies and regulation of foreign investment has critically implied critical insight into the exploration of the future. The required aid in building the appropriate credibility under the "Saudi Arabian General Investment Authority (SAGIA)" has implied the proper use of the country's regulators with respect to foreign investment in an appropriate way.
The development of changes in the entire work for exploration of the business is critically defied and helps in taking the decision for the development of the foreign firms in an appropriate manner. The regime for "foreign direct investment (FDI)" has been mainly started with the proper accession of the "World Trade Organization (WTO)" by Saudi Arabia in the year 2005 (Alofan et al. 25). The valuation of the major regime and its effect on Saudi Arabia has been critically implicated and created a major effect on the development of foreign firms in Saudi Arabia. As per the reference of ALTUWAIJRI et al. (65), the entry of the foreign firm into the country has been mainly allowed after taking the benefit of liberalized access to various foreign markets. The uses of implied changes of entry into the local market have been affected due to the different types of reforms that are included in the "legislation and trade policies".
The valuation of the total international firm in Saudi Arabia has been evaluated and it can make an effect in analyzing the required range for a number of international firms. It has been optimized that 54% of the international company is up in 2019 into Saudi Arabia. The estimated result of the SAGIA has declared that a total number of 1,131 have set international operations in the kingdom, especially in the year 2019. As per the view of Bajaher et al. (252), the required valuation of the data range with the proper valuation of the development of the business has a critical effect on exploring its business. The estimation for the firm has critically implied and states that Saudi Arabia has increased the total 54% more firms as compared to the development of the foreign firm in 2018.
The required pace for the FDI has been in the range of proper progression and it implied the proper statement that makes an impact over analysis of increasing the foreign investment in an appropriate way. Based on the opinion of Park et al. (201), the use of the appropriate ability in terms of changes in the foreign firm and increase of the estimated range for the particular industry as "construction, manufacturing and ICT". The required valuation of increasing the total establishment of those industries in Saudi Arabia has been appropriately estimated. The valuation of the total number of companies in the construction, and manufacturing of ICT are 193, 190 and 178 respectively which is higher as compared to the established company in the year 2018.
Role of Foreign firms in Saudi Arabia
The role of Foreign firms in Saudi Arabia has been critically analyzed based on the valuation of their position in the market. The use of the appropriate valuation with the required implication over changing has entire data range with the exploration. As per the reference of Hamdan (209), the exploration of the business with the use of the FDI has the critical implication that can make effective taking an appropriate step in developing countries. The required role of the foreign firm has been properly estimated as it has the required benefit to Saudi Arabia in terms of changing the economic policies that can help in developing the situation of the country in an appropriate way. The use of the appropriate range in terms of changes in foreign investment has been effectively used by Saudi Arabia which has implied major changes in economic growth and helped in developing the environmental condition in an appropriate manner.
The major role of the foreign form in Saudi Arabia has been accumulated in terms of changing the required climate condition of the business. The effective valuation of the appropriate data ranges with the improvement of the economic condition is critically evaluated with the changes in the required "Saudi Arabia’s business climate" at the global scale. Based on the research work of AL Nasser (52), the estimation of the major changes in the economic condition of the country has been accumulated with the required changes in the economic condition. The growth in the GDP has been the major aspect that created an effect of showing the appropriate development. The valuation of all the related aspects has created an impact on developing the market of Saudi Arabia in an appropriate way.
Figure 7: Gross Domestic Product (GDP) in Saudi Arabia
The above figure shows the trend in the GDP growth as it has accumulated in the overall data range which is declared to have increased from the past years. The worth changes in the entire range for the GDP is "833.54 billion US dollars in 2021". On the other hand, it reflects that Saudi Arabia has represented a total of 0.37% of the world's economy and creates an impact reflecting the country's position worldwide. It has also implicated the overall ranges for the estimation of the growth in the GDP can also be increased as compared to the year 2021 (tradingeconomics.com, 2023). The required implication over the growth of the economy has created an impact on changing the economic condition with the growth of foreign investment. The increase in the FDI has implied an increase in the cash inflow in the country as well. The implication of changes in the market position has critically reflected that the economic condition has changed due to the required growth of the economy in an appropriate way.
Chapter 4: Methodology
Study’s focus
The focus of the research has remained on analysing the quantum of "foreign direct investment" in Saudi Arabia which is required to investigate whether the foreign investments made in Saudi Arabia had critically benefitted the country or not. The study has been focusing all the more to identify the extent to which they have impacted the KSA's economy. The "foreign direct investment" had multiple consequences demonstrated for growing countries resulting in easy technology transferring, facilitating productivity levels and not only economic growth (Ahmad et al. 6). Furthermore, it has resulted in enhancing the simulation of foreign trade by assisting the establishment of a better competitive trading environment by strengthening the development of private sectors. This endeavoured "excellent standard initiatives" and prosperity to grow as an economy. The research focused on the research topic by using FDI as well as GDP inflows containing statistical properties from "2012 to 2021" which fulfilled the purpose of investigating the FDI influences on the economy of Saudi Arabia.
The research had thus been conducted based on a survey from a sample size of 133 respondents investing in different companies in the KSA to find out how FDI could impact the Saudi economy. Based on the survey results statistical tests had been conducted like descriptive statistics, t-tests, One-way ANOVA, Correlations, validity and reliability tests in the SPSS software. Thus, the study focused on FDI trends that had recently taken place within various companies in the KSA to ascertain the primary details. It is important to assess the research topic in evaluating the effects of "foreign direct investment" in the Saudi Arabian companies which had critically projected economic growth within the economies. As mentioned by Contractor et al. (3), FDI has resulted in successfully delivering the "influx of foreign resources" in the form of investments which boosted economical success, as FDI is significant to develop capital through industrialisation.
Selection and access to data
The data selected for completing the study had been obtained by conducting a survey analysis on 133 respondents investing in different organisations operating in Saudi Arabia to assess the impact of foreign investments. Along with this, reliable and relevant official websites were helpful in assessing other primary data and projecting its authenticity. The process of data selection and access to the data can be identified as one of the major actions completed by the researcher as this is the lifeblood which forms the results of a research paper. As opined by Baas et al. (5), the selection of data is crucial as this requires being authentic and generic to obtain specific information that is significant for the completion of the study and is at par with the research questions.
Accessing the data relevant to this topic was furthermore focused on its employment levels, infrastructure, economic growth and development of the private sector along with its financial sectors. The "open source websites" like the official website of Saudi Arabia's "Ministry of Finance" had been focused on deriving relevant information. The selection of data and accessing the same can be obtained from either primary sources or secondary sources or hybrid sources ("primary and secondary") (Sileyew 1). In this case, the derivation of primary sources for information collection had been selected to frame answers for the research questions and therefore meet the research aim and objectives. Primary sources of data selection and access are more reliable due to their authenticity and as the researcher of this study had conducted the survey, the results generated were true and relevant to paint a clear picture concerning the current scenario of FDI in KSA.
Information gathering method
The data collected for research are raw findings which are derived from diverse sources by the researchers and are required to get sorted and filtered which are then synthesised with reasoning and forming information. In the opinion of Bhavsar and Chudasama (2), the "information gathering methods" are techniques which consist of repetitive processes which can be utilised for creating and organising data across multiple types of sources. Generally, the methods which are chosen by any researcher are dependent on the research questions which are being asked within the study. There are multiple methods for gathering information which involve meetings, interviews, observations, questionnaires, "reviewing internal documents", reviewing software, surveys and review of external documents (Diekerhof 9).
In this case, the information collection technique of the survey conducted by creating questionnaires had been used by the researcher to complete the study. The questionnaire in this study contained 15 questions asked to 133 respondents selected randomly. The research topic had been examining the impact of foreign investment on the Saudi economy because in contemporary times KSA has lately adopted more liberal economic policies. The researcher, in this case, anticipated that in the coming future Saudi Arabia would be facilitated as a major position of international investors will be making significant investments. As suggested by De Weerdt, Gibson and Beegle (8), reliance on survey methods is identified as a practice to gather data on a study by asking sample size questions which are relating to the research topic.
Based on the questionnaire, the researcher had been seeking to investigate the positive as well as negative impacts on the business of the respondents which directly outlined the condition of foreign investments in KSA. Information gathered from the questionnaire asked three demographic questions after which a direct focus was made relating to the topic. Respondents were asked about their organisation's activities, the categorical type of investment undertaken, the reasons for investing in Saudi Arabia and the time of operations. Other questions related to gathering information about Saudi Arabia's economic stability, as per the respondent's viewpoints, the levels of profits which might have been derived from global companies.
The technological spillover and innovation information depicting the type of technology experienced and the mode of transferring along with the type of benefit from the type of technology will help Saudi Arabia to boost its economic growth. Reflecting on the effects of employment, the percentages of the Saudi Arabian labour force and indicating the amount of revenue generated by conducting operations in KSA by the foreign companies.
Data analysis methods
The method utilised by the researchers to analyse data findings within research to fulfil the purpose of extracting significant information from data sources along with making decisions based on the data analysis. As per the suggestions of Li, Yang and Hu (2), data analysis refers to a process for the systematic application of statistical and logical techniques which are used for describing and illustrating, condensing and recapping to evaluate data. The preliminary methods for data analysis deployed by the researchers are identified to be "qualitative data analysis techniques and quantitative data analysis techniques". The mentioned techniques can either be used independently or in combination which helps in critical data synthesis and framing significant insights.
In this study, the "quantitative data analysis technique" had been used on the primary data collected from the responses to the survey containing questionnaire results from 133 respondents who had likely invested in Saudi Arabia as a foreign firm. The quantitative analysis of primary data was projected to be efficient as this collected data from multiple perspectives which provided accurate and essential information on the research topic. The method of data collection had been commenced by auditing the different data sources based on their credibility, purpose and originality. The research purpose for data auditing of sources had been conducted for ensuring that the data used was fit to meet the research objectives of the study.
The data analysis tool defined as a process to analyse data, especially that are number-based or can get easily converted into numerical is known as the "quantitative data analysis". Based on the opinions of Dhall (11), "quantitative data analysis," is expected in turning "raw numbers into meaningful data" with the help of applying critical and rational thinking. Here, the researcher deployed the quantitative analysis which is the technique using different statistical and mathematical modelling, and measurements along with scientific research for understanding the behaviour of the results. As mentioned in the above discussion points, the study had been completed based on the employment of significant statistical software SPSS which had deployed different models and tools from statistics on the survey results in assessing significant synopsis.
Based on the survey results statistical tests had been conducted like descriptive statistics, t-tests, One-way ANOVA, Correlations, validity and reliability tests in the SPSS software. Descriptive modelling of statistics on the question "What percentage of employees are citizens of Saudi Arabia?" at the "95% confidence level". Following this, at a "5% level of significance," the t-test had been conducted on the question "What percentage of your company’s total revenue comes from operations in Saudi Arabia?”
The One-way ANOVA test had been completed by inputting the survey question "As an employee, how would you rate Saudi Arabia's level of economic stability?” Following this, at a "5% level of significance," the correlation had been showcased by the researcher between responses to two questions namely, "How many people do you currently employ in Saudi Arabia?" with "What percentage of employees are citizens of Saudi Arabia?” Lastly, the validity and reliability test used "Cronbach’s Alpha" to assess the levels of correlation among the data responses of 11 questions as inputted ion the SPSS software by the researcher.
Rigour of the study
The rigor of a research study depicts the results and process achieved when individual elements within the research methodology are systematic along with transparent with the help of methodical, accurate and complete reporting. The measures that had been undertaken for enhancing the study's rigor highlight that this study had been conducted with caution in a professional manner. The relevant data collected were analysed by utilising different "statistical data analysis tools" which are better commendable, dependable and credible. Along with this, the data resources utilised for collection from different credible sources like conducting surveys by constructing a questionnaire. This study was possible to be concluded based on the deployment of significant "quantitative data analysis" methodologies based on the primary data collected. In the opinion of Olubusoye and Akintande (7), using statistical software and tools for a research study can often lead to misusing data findings where chances of committing errors if the users project less knowledge of statistics.
Moreover, primary data, in this case, also requires being uniform and homogeneous to generate accurate findings. As an outcome, the weakness of this selected approach had been required to get compensated which thus enhanced the credibility of the research findings. Utilisation of relevant quantitative data critically allowed drawing inferences and generalisations. It can be commented here that, using the "quantitative research approach" for data analysis also allows for the manipulation of variables that result to enhance the conformability as well as transformability of the research findings. Derivation of a lesser detailed picture had been generated in this research as not all the respondents belonged to large-scale KSA organisations which might have experienced greater foreign investments within their firms. As this method is absolutely based on numerical responses therefore slight insights into motivations, thoughts and drivers of the respondent group lack significant context, which is a key component.
Chapter 5: Empirical Results
Findings and results
The findings and results have significance in outlining the main outcomes of the selected data set to identify the impact of influencing factors on each other. The preference and behaviour of a customer have been traced and evaluated by conducting a survey among 133 respondents who have engaged in FDI and economic activities in KSA. The survey has conducted based on 15 survey questions, of this one question was demographic that focused on analysing the age group of participants. The other questions have focused on identifying the education level, working experience, designation in a firm, size of the working firm, main activities of the firm, and investment type. However, some survey question has focused on identifying the location of the firm, years of operation, economic stability in Saudi Arabia, the effect of the foreign firm on the profit of the KSA firm, technical advancement, transferability of techniques to the UK, and rate of company’s revenue from Saudi Arabia.
The statistical test ahs conducted by selecting some relevant questions to reflect the effect of FDI on the economic stability of Saudi Arabia.
Descriptive test: A descriptive test has been conducted to outline the “mean, median, mode”, range, SD and another descriptive measure to provide precise outcomes of a wide data range.
Assumptions: It has assumed that employees less than 14% have indicated by 1, employees between 15% and 25% have depicted by 2, the rate between 26% and 36% has indicated by 3 and more than 40% has reflected by 4.
Figure 5.1: Descriptive output
The above figure has reflected the “actual rate of employees” operating as residents of Saudi Arabia. The mean value of the test is 2.69, this depicted that 29.49% of employees working in the firm is KSA or Saudi Arabia citizen. The “upper and lower” mean at a “95% confidence interval” have been outlined to be 2.50 and 2.88. This has depicted that more than 29.49% of employees are residents of Saudi Arabia.
T-test(200): T-test has been conducted to outline the actual relationship between the selected variables in an analysis. As per the reference of (), the means of two different groups have been effectively compared by conducting a t-test.
Assumption: The test has been conducted by selecting two specific questions these are to acknowledge the rate of the company’s income from the domestic environment of Saudi Arabia and income generated from outside boundaries of Saudi Arabia. The responses of the participants have been received by using Yes or No where Yes is indicated as 1 and No as 0. The revenue “less than 10%” has indicated by 1, between 11 to 35% by 2, between 36-50% by 3, between 51-75% by 4, 76-89% by 5 and higher than 90% by 6.
Figure 5.2: T-test Output
The above figure has depicted the mean value of 3.34 for No and 3.22 for Yes, however, this has depicted that 50% of revenue is generated within the boundaries of Saudi Arabia and the other 50% from foreign countries in the firm. The P-value of the test has equivalent to 0.66 this has reflected that there exists a relationship between a foreign investment with the revenue of the firm. The aforementioned value has justified that there has been a “positive and strong relationship” between the revenue generated in the firm within and out of Saudi Arabia.
One-way ANOVA test: The test has conducted by selecting questions that evaluated the experience of employees working in the company.
Assumptions: The response to the selected question for the ANOVA test has been collected based on three specific options these are experienced less than one year indicate 1, between 2 and 5 years by 2 and more than 5 years by 3.
The “economic stability” of Saudi Arabia has been tested by using three options these are very unstable by 1, Neutral by 2 and Very stable by 3.
Descriptives
“As an employee, How would you rate Saudi Arabia's level of economic stability?
“N
Mean
Std. Deviation
Std. Error
95% Confidence Interval for Mean
Minimum
Maximum
Lower Bound
Upper Bound
Less than one year
21
2.24
.625
.136
1.95
2.52
1
3
Between 2 and 5 years
49
2.18
.601
.086
2.01
2.36
1
3
More than 5 years
63
2.30
.586
.074
2.15
2.45
1
3
Total
133
2.25
.596
.052
2.15
2.35
1
3”
Table 5.1: One-sample test
The above table depicted that out of 133 employees, 21 have less than one year of experience, 49 have experienced between 2-5 years and 63 have experience of more than five years.
“ANOVA
As an employee, How would you rate Saudi Arabia's level of economic stability?
The above table has reflected an F-value of 0.54 and a significance value of 0.584, these values depicted that Saudi Arabia has a slightly stable economy. However, this has been unable to depict the actual economic condition of the country.
Correlation test: Correlation test has been conducted to identify the relationship of selected variables in a test. The test has conducted by selecting two survey questions these are the number of employees employed in Saudi Arabia and the rate of employees’ citizens of the country.
Assumptions: Number of employed has been outlined by using five specific options these are less than 50 indicated by 1, between 50-300 by 2, between 300 to 1000 by 3, between 1000 to 3000 by 4 and more than 3000 by 5. Assumptions related to employees rate has similar to assumptions in the descriptive test.
Figure 5.3: Correlation output
The above figure has reflected correlation values of 0.293 and 0.344 between the rate of employees citizen of “Saudi Arabia” and the employment providing rate. The significance of the P-value of the test has reflected 0.00 this has depicted the “positive relationship” between the two selected variables. This has depicted that more than 5% of employment is provided by the country.
Regression test: The reliability and originality of the relationship exist between identified “dependent and independent variables” has been outlined or acknowledged by linear regression test (). The regression test has conducted based on two specific questions related to employment in Saudi Arabia.
Assumptions: The percentage of employees citizens of Saudi Arabia has been taken as the dependent variable and the number of people employed in the country has been taken as “the independent variable”.
Hypotheses: Null hypothesis (H0): The rate of employees in Saudi Arabia has not been influenced by employment provided by the country
Alternative hypothesis (H1): The rate of employees in Saudi Arabia has been influenced by employment provided by the country
Figure 5.4: Regression output
The above figure has depicted that “P-value” of the test is 0.00 this has depicted that there exists a strong relationship between the “dependent and independent variable”. The “coefficient value” of the selected “dependent variable” with “the independent variable” is 0.307 this has depicted the “positive relationship” of the dependent variable with “the independent variable”. Here “The null hypothesis (H0)” has been rejected and the “alternative hypothesis (H1)” has been satisfied. This has depicted that rate of employees residing in Saudi Arabia has been influenced or affected by the employment rate in the country.
Validity test: Validity test has considered identifying the validation or authentication of collected data used in an analysis. The test has conducted based on 11 randomly selected survey questions and tested its “Pearson correlation and significance value”. The test has depicted the “actual relationship” of the specific factors on others in the most accurate and precise manner.
Figure 5.5: Validity test
The above figure has reflected the “actual relationship” of the 11 selected survey questions that have relevance to identify the relationship that exists between the selected questions. The “age of the participants” has negatively related to the company’s secondary activity and the visiting frequency of foreign companies as their correlation value is -0.63 and -0.62. The significance value at 5% is 0.00 this has reflected the overall “positive relation” of the questions with other selected questions. The “Pearson correlation value” has a maximum on the impact of FDI on the profitability and expertise of the company in KSA. The correlation of 0.969 reflected a strong average relation to the visiting of foreign firms in the affairs of Saudi Arabia to improve its economic condition.
Reliability test: Reliability test has been conducted to determine the value of the psychological test and ensure the reliability value of the relevant data set. The test has depicted the validation and omission of any specific data from a wide data set.
Figure 5.6: Reliability output
The above figure has depicted “Cronbach’s alpha” value of 0.706 which is more than 0.6 this has depicted effective validation of the used dataset in the analysis. The statistical test has justified the accurate and effective relationship and impact of the spect variables in the analysis.
Discussion
A brief discussion of the findings from statistical tests and analysing of relevant literature has been traced in this section of the analysis. The discussion has important to provide a clear and precise discussion of the findings and their impact on the selected topic of analysis. The relevance and impact of the statistical test have been discussed and its impact of “FDI on the economic condition” of Saudi Arabia has been outlined. Furthermore, the discussion of the findings from selected papers and articles relevant to the topic in the “literature review section” has been briefly presented in this chapter.
Discussion on the statistical output
The “regression test” has depicted the impact of the “independent variable” on the “dependent variable” selected in the test. The “correlation test” has reflected the relevant relationship of various questions each other by its coefficient value. The “T-test and ANOVA test” has depicted the reliance or dependency of selected variables on each other by their relevant P-value. The Descriptive statistics have depicted the mean value rate of employees engaged in the company are Saudi Arabia citizens. The upper and lower “mean value” depicted that the maximum number of employees in the company are not citizens of the KSA. Furthermore, it has been identified that company has the majority of employees are from foreign countries and contribute towards the profitability of the firm.
T-test output has confirmed that half of the total revenue of the firm resided in KSA has been generated from the domestic market and another half from the foreign market. The P-value has depicted a positive relationship between the revenue from the foreign market to the domestic market. This has confirmed that FDI has highly related to the revenue and profitability of the domestic firm in the country. However, the findings of the “one-way Anova test” have focused on ascertaining the “economic stability and experience” held by the employees of the entity in the market. The number of employees under three specific ranges of experience has confirmed that employees have like to stay as an employee of the company. A total of 63 out of 133 employees have more than 5 years of experience in the company. This has depicted stability in the “employee turnover” in the company. The F-value has depicted a “stable economic condition” in the country after the availability of relevant FDI in the country.
The output of the “correlation test” has depicted that there exists a “direct and positive relation” between the employed rate and employees of the citizen of the country. The “significance value” has depicted that the “employment rate” has influenced the “rate of employees” to work in the company. A “regression test” has been conducted to acknowledge the actual impact of the employment rate on the employee participation of Saudi Arabia’s citizens. The coefficient value has confirmed that if the employment rate has increased in the country then the engagement and participation of Saudi citizens as employees has positively increased. The “significant value” depicted that the selected variables are strongly related to each other. The “descriptive output” of the selected variable for the “regression test” has confirmed that rate of “employees working” in the firm resided in the country has higher compared to the “employment rate” of the country.
The validity test has confirmed that FDI or participation of foreign firms has highly influenced the profitability and economic condition of KSA. The “Person correlation value” of the validity test has justified that FDI has a positive impact on the “profitability and survivability” of the company. However, significance value has been depicted that all survey questions are relevant and effective in identifying the “impact of FDI” on the “economic and non-economic condition” of the country. The “Cronbach’s alpha value” of the “reliability test” has outlined the “validity and reliability” of the collected data set. The statistical test has confirmed that there has been a “positive and direct relation” exist between the “profitability and survivability” of the KSA company on the FDI. The “economic stability” of the country has been measured by the conduction of the “P-value or F-value” of the test.
Discussion on the Findings from the literature review
Discussion of the Globalization and foreign investment
Foreign investment has played an effective role in providing employment opportunities in the country. However, foreign investment has improved the technical adaptability and advancement of a firm after providing the required number of funds (Contractor et al. (3)). The existence of foreign investors has provided facilities for mutual funds, pension funds, and hedge funds. Foreign investment has dissimilar from capital investment that has included provisions of equipment, technology, and management. The financial ability of an entity has increased after the effective involvement of foreign investors. It has been identified foreign investment has expanded the range and areas of operation of a firm in a country. The participation of the foreign institution has introduced effective control and supervision of foreign business.
The engagement of “foreign investors and institutions” has created a “competitive marketing environment” that has created “political stability” in the country. Globalization has reflected the “integration of trade, investment and markets project” few restrictions generating a steady flow of "products and services" between countries. The FDI has boosted the inflow of “foreign capital” in the local economy of KSA. The direct investment in the domestic firm has increased by the engagement of “portfolio and foreign investment” and has been highly influenced or affected by the availability of foreign or globalises investment.
Discussion of the Impact of foreign firms on local investors
The excessive participation of foreign firms in the local market has raised the currency value and stabilised the economic condition of a country. The acquisition of foreign technologies has increased after an effective investment of foreign firms in the local business of KSA. The engagement of excessive participation of foreign companies has reduced the growth and development of local or domestic companies. This has hampered the demand for domestic products among the customers in the local market. FDI has created a situation bringing several new "competitive business environments" in a country and creating excessive competition with other profit-making organisations in the global market and generating facilities from the international business environment (El-Awady, Al-Mushayqih and Al-Oudah (16)). The engagement of foreign companies has provided the required resources for the completion of the affairs of the firms in the local economy. It has identified that investments made by foreign companies have created financial stability in the oil exploration market. This has created a direct impact on the setting up of the “oil conglomerates and petrochemical” named ARAMCO. Furthermore, it has been identified that foreign firms have also improved or developed the financial industry like banks and institutions of the KSA.
Discussion of the Role foreign investment plays in the local economies
The change in the “political and economic” condition of a local market has been influenced by “foreign direct investment”. Foreign investment has reduced the overall ability or capacity of the residential investor in the context of exploration and created an effect on the entire work development in the local market (Al-Gamrh et al. 209). The change in the business environment has been observed by the introduction of FDI in the KSA market. The currency value and participation of the local population of the country have declined after the engagement of foreign firms in the country. The FDI has negatively impacted the firms and economic condition of KSA. the domestic firm has been thrown out of competition due to the engagement of foreign firms in the market. Furthermore, the import in KSA has increased and export has reduced due to a decline in productivity and participation of the working population in the financial affairs of a local company.
Discussion of the Social and cultural impact of foreign firms on local communities
The diversification in the ethical guidelines and cultural environment of the local country has been influenced by the engagement of foreign firms in the market. The “participation and engagement” of “stakeholders and customers” of the local market have been affected by inflows of FDI inflows in the market. The conservative cultural environment in KSA has reduced the opportunity to survive foreign firms with a different culture in the country. The authority of KSA has focused on sharing loyalty, cultural values, and a “strong moral code,” this has avoided the barriers due to cultural diversity in front of foreign firms to operate freely. Furthermore, it has been identified that stability in the employment and economic growth rate has been created after the effective participation of foreign firms in the local community of KSA (Al-Tit et al. 13). Furthermore, the participation of foreign firms has created advancement in the technical and “legal environment” of the country.
Discussion of the Social and cultural impact of foreign firms on local communities
The relevant and specific barriers and obstacles that have identified in foreign trade are “tariff barriers, non-tariff barriers” and natural barriers. The natural barrier has been considered the “social, distance transportation, and cultural issues” due to fluctuation in the domestic market compared to foreign markets.
Discussion of the Challenges faced by foreign investors in foreign countries
The proper valuation of the major challenges which are faced by foreign investors has analyzed and created implications over stating that it cannot make a major effect over stating barriers for the foreign investors. The major use of the accumulated ranges in the data has critically implicated the work in the valuation of the challenges effectively faced by foreign investors. As argued by Sabirov et al. (65), the required transferability of the overall skill and ranges has been properly analyzed with the critical evaluation of the entire aspect that is correlated to the entire factors. The valuation of all the ranges with the proper accumulation of the "transportation and communication cost" has implied the critical valuation of the changes in the economy. The valuation of all the aspects has critically implied the proper development of the required aspect that has helped in effectively changing in all the data range to develop work in an appropriate way.
Discussion of the Local culture and how it shapes the operations of foreign firms
The valuation of the local culture in terms of proper estimation of the aspect that correlates to the development of the work with the diversification has been properly discussed in the range. The culture diversification with the use of all the estimated data ranges has been critically evaluated. As per the view of Sian et al. (84), the local culture in Saudi Arabia has critical implications as it has stayed the way of conducting the work and made implications over changing the position in an appropriate way. the development of the proper position with the use of the local culture has a positive effect at the time of developing foreign firms in the market. As per the opinion of Alanezi et al. (25), it has estimated values and work process at the business as it can be implied with the proper development of the work which can help in showing the adequate position of the foreign firm in terms of implied all work in an appropriate manner. The development or exploration of the local culture is mainly extensive as it has proper make effect over providing the adequate range and way for the success of the foreign firm in the local market.
Foreign firms in Saudi Arabia and their history
The valuation of the major role and history of the foreign firm has been properly analyzed and made an effective implication for development in the country. The use of the required changes in each related aspect that has created an effect on the entire aspect of the development of the foreign firm in Saudi Arabia has been properly analyzed. As per the view of Muzafar et al. (2020), it has reflected that foreign investment has a critical impact over exploration of business in Saudi Arabia. The proper changes in the required range for exploration of the firm are appropriately analyzed as the required credibility of the SAGIA has been effectively used and impact the accumulated changes in the exploration of the foreign firm in Saudi Arabia. The proper use of the entire aspect has been related to the accomplishment of increasing the total number of foreign firms in the market of Saudi Arabia. Based on the opinion of Park et al. (2019), the use of the appropriate ability in terms of changes in the foreign firm and increase of the estimated range for the particular industry as "construction, manufacturing and ICT". On the contrary, it has also implicated the major changes in the overall result that is fully related to the preparation of the major factors that can help in developing other industries as well. The use of the appropriate data ranges has critically helped in cond\sider all asp[ect which is majorly related to the development of the foreign firm by 54% which is more ads compared to the previous year. The required use of the all data range has critically depicted that the development of the foreign firm is critically increased.
Role of Foreign firms in Saudi Arabia
The foreign firm has played a rigorous role in the major development of the work and changes in the economic position of the country as well. The required development in the economic position of Saudi Arabia has been possible due to the implied changes in the major range that can help in showing the required growth of the GDP as well. Based on the research work of AL Nasser (2020), the major growth in the economic position is estimated and creates the required effect of analyzing the beneficial position of the economy in an appropriate way. On the other hand, the valuation of the adequate changes in the economic growth is effectively developed which creates a proper impact on showing that the GDP growth rate has helped in creating an effective environmental position and properly making the way to develop irk in an appropriate way. total value for the growth has been estimated as "833.54 billion US dollars in 2021" which makes implications showing the adequate position of the foreign firm in an appropriate manner.
Recommendations
Based on the determinants of this research it can be identified that Saudi Arabia was consistent with various unfavourable determinants which had hindered to injection of foreign investment previously. Along with this, it had also been identified that the country had undergone structural changes in regulations and policies which critically resulted to draw significant benefits from "foreign direct investments", as mentioned in the "Foreign Investment Act". All of these findings are clear indications that the upcoming developing countries having favourable policies along with strategic measures are more likely to get benefitted from the positive impacts of foreign investments in comparison to those having unfavourable measures and policies. Therefore, this research critically recommends that countries undertake structural and policy changes, especially within developing countries as a result to attract more and better foreign investors.
It had been highlighted in the study that the political stabilities within economies concerning a particular region are considered a "major determinant of FDI". The administrative body of Saudi Arabia is identified to be politically stable whereas the surrounding regions of other middle-eastern countries face diverse political challenges. These include Arabs uprisings in countries like Egypt and Libya along with terrorist threats in Iraq. As an outcome of this, major investors have shied away from this entire region regardless of the fact to understand the financial and economic stability of an individual country. It is recommended that the maintenance of political and economic viability is important to attract foreign investors.
In general Saudi Arabia is recommended to attract subsequent amounts of "foreign direct investment" FDI by involving to put up the required infrastructure to obtain a quality investor. There are multiple activities undertaken to do the same which involve leveraging the transport facilities along with the energy supply. This is further inclusive of the adequate skilled workforce and accessing credibility by any "business-friendly financial system". It is recommended to the organisation in maintaining documentation to know how could the business work in the future under the foreign economy's government regulations. Therefore, companies require listing any potential drawbacks and referring to the business plan created for the rectification of the same. In this case, it can be discussed to suggest that strong determinants like market size and infrastructural qualities are considered the major requirements for attracting FDI.
These are followed by stronger economic and political stabilities and "free trade zones" that form important determinants for FDI. Other results include mixed components like significant fiscal incentives, the external business or investment climate, industrial openness and labour costs. The process of attracting a handsome portion of FDI can eventually convert into a self-fulfilling cycle once the country or the province is hit by a critical mass, therefore, making it easier in bringing more. The injunction of preferential policies, for example, "free trade zones" and tax incentives benefit both international and domestic firms. As a result of this, "economies of scale" take a kickstart within the organisations and the efficiencies rise subsequently. The researchers had previously identified that Saudi Arabia, the "oil-dependent kingdom" pertains chances of becoming the supplier of raw materials along with becoming a key player at times of energy transitions.
Here foreign investors have become slow in embracing the opportunities. The "government of Saudi Arabia" had been identified in making a bid for attracting more numbers of international investors, as it has set up a "dedicated agency" for trying and turning around its underwhelming records in "attracting inward investment". A major recommendation had been provided to the organisation of Saudi Arabia for attracting foreign investments by enabling a significant integrated approach that requires to be rendered between the government agencies. This would again facilitate the process by encouraging better levels of investment along with support partnership offers created between foreign and local investors.
Foreign investments are considered to be an essential part containing the plan to set out in the transformation of Saudi Arabia's economy. The country visioned that within 2030 it would wean off the country's increased dependence on revenues projected from exporting gas and oil as the higher prices of oil underlined how "integral hydrocarbons" have impacted economic prospects. Therefore, launching an "inward investment agency", as proposed by the Saudi government will be beneficial for the economy's prosperous growth in the development of the private sector.
Conclusion
Linking with objective 1: To determine how the foreign company has impacted the Saudi Arabian economy It has linked this objective with the "Effect of FDI on Economic Growth" point in the literature review chapter and tries to achieve the approved outcome which has been justifying this objective. The impact of the foreign company has been positively grown with the effective impact on the "GDP growth, employment, and productivity". The valuation of this aspect with the major accumulation of the changes in the "country’s trade balance" has been estimated which shows the positive changes in an appropriate way. On the other hand, it has used the appropriate survey questions that can help in analyzing appropriate outcomes related to achieving this objective. The required valuation of this objective is effectively linked with question number 6th and 7th in the quantitative analysis as it has critically linked with the impact of the foreign company on the economic position of Saudi Arabia. The use of the analyzed result from these two questions has made a positive effect as it has properly accumulated the size and main activity of the company which can effectively help in analyzing the major condition and its impact on the economy of Saudi Arabia. The use of the analyzed changes in the required data range of each activity is critically implied with the valuation of the size and activity. The effect on the economy of Saudi Arabia is analyzed by the changes in the range of the activity which has been provided by foreign companies in Saudi Arabia. The valuation of the major effect over-analysis on the changes in the economic growth is properly evaluated as the position of the country based on the economy has been positively grown.
Linking with objective 2: To critically examine how international companies affect Saudi Arabia's foreign direct investment inflows given that Saudi Arabia is a significant oil supplier This objective is effectively linked with the "Challenges faced by foreign investors in foreign countries'' in the literature review. The use of these factors has effectively accumulated the major challenges which are faced by the foreign company and its impact on the Saudi Arabia investment inflow value. The effective changes in the range of the investor's cost and the required barriers have been estimated and properly create an effect over the entire range of data in an appropriate way. The valuation of the entire aspect based on the required barriers is accumulated in terms of “influential barriers, border barriers, technical trade barriers' '. On the other hand, proper changes in operating work in the international company have also implied changes in the investment inflow value in the country. This objective has been also linked with question number 9th and 10th in the quantitative analysis and helps in understanding the impact of "Saudi Arabia's foreign direct investment inflows” on the required oil suppliers. the use of adequate sources of data based on the analyzed result has been analyzed and made an effect on the entire data range in an appropriate way. The evaluated research and results have an impact that the supplier of oil is not significant as compared to the others.
Linking with objective 3: To investigate Saudi Arabia's FDI factors in comparison to those of other growing economies. The required use of "Globalization and foreign investment" in the literature review chapter has mainly helped in investigating the required changes in the foreign market that are implied with the growth of the other economics. The valuation of the effective stages in the changes in the growth of the GDP and other economic factors is properly evaluated and creates an impact over showing the appropriate factors of the "Saudi Arabia's FDI". On the other hand, it has effectively estimated that the required changes in the growth of the GDP have critically impacted the other FDI factors and helped in having the appropriate growth of the foreign firms. The use of the overall data range with the appropriate development of investigation on the growth of the economics is appropriately estimated. On the other hand, it has also used question number 11 and 14 of the quantitative analysis in terms of analyzed changes or stabilized situations of the economy in the foreign market. The required valuation of the stabilized situation of the country has been properly evaluated in an appropriate manner. On the other hand, it has also estimated the required valuation of changes in the technology with the increase of the FDI in the market as well.
Linking with objective 4: To ascertain how Saudi Arabia's FDI is impacted by its substantial reliance on oil money. The major use of the "Social and cultural impact of foreign firms on local communities' ' in the literature review chapter has critically implied analyzing the required aspect that is effectively related to the impact on Saudi Arabia on the substantial reliance on oil money as well. The required use of the affected data range has the critical implications that the local community in the country has the major growth which has impacted on fulfilling this objective. The use of all the reliable aspects in terms of changes in the work community has been discussed which can help in implicating the impact of the FDI based on the substantial changes in the way of FDI. On the other hand, it has also used all the ranges which are critically implied with the major reflection as this objective is properly linked with the 5th and 8th questions in the used quantitative analysis that makes an impact over analysis of the result in an appropriate way. The analyzed question has helped in estimating the result that is related to the impact of Saudi Arabia's FDI on the other substantial reliance on oil money.
Linking with objective 5: To determine the effect of foreign direct investments on economic growth in Saudi Arabia This objective has been linked with the “Role of Foreign firms in Saudi Arabia and Role of foreign investment plays in the local economies" in the literature review. The valuation of the estimated ranges with the growth of the economy with the increase of the FDI in Saudi Arabia has been effectively discussed. Discussion over changes in the economic factors has been effectively discussed and understands the major effect of the FDI on the growth of the GDP in Saudi Arabia. On the other hand, it has taken the help of questions 17 and 19 of the quantitative analysis which make an impact in providing the appropriate range in each aspect that is critically implied with the valuation of the FDI impact on the required economic growth in the country.
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