Attracting foreign direct investment (FDI) is considered one of the main challenges faced by economies. It is also one of the main factors that help develop the national economy since it contributes to increasing GDP growth rates in the host country, developing technical staff, creating jobs, transferring modern technology, and supporting competitive capacities. According to the Saudi Vision 2030, the ratio of FDI to GDP will be increased from 3.8% to the global average of 5.7%. The research problem is that there is a gap between the extent of current and hoped-for FDI. The research paper will discuss the following objectives: Exploring the current investment environment in KSA, shedding light on current legislations that are attractive for investment, identifying the most important determinants of investment in KSA, and testing the relationship between FDI inflows and economic factors affecting them. The statistical descriptive analysis method was adopted, and a standard model was analyzed using the E-Views program. Secondary data were collected from the General Organization for Statistics, World Bank publications, and the UNCTAD database. The research hypotheses related to the existence of a significant relationship between the volume of FDI with GDP and the current investment laws were tested. In conclusion, the most important determinants of investment in KSA which have an impact are GDP growth rate, domestic investments, and natural gas reserves. Furthermore, there is an inverse relationship between government expenditure and inflation rate on the volume of FDI, which negatively affects the deficit of the state budget and the productive efficiency of different sectors. Also, the researchers have been recommended that there is a need to prepare the current investment environment to increase the attraction of FDI in KSA in order to achieve the Saudi Vision 2030 by increasing and diversifying GDP, developing programs to support local investment, reducing the government expenditure and the inflation rate, developing controls obliging foreign companies to transfer technology, train labor, and develop controls to take into account the cleanliness of the environment in the activities of FDI in the country.
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