Foreign Direct Investment (FDI) from Europe in Saudi Arabia and Business Co-operation between enterprises of both Regions are very much desired targets of Saudi Foreign Economic Policies. To promote these targets the relevant Investment Authorities have commissioned a study to the Ifo Institute.
Why FDI and co-operation intensities are below expectations and how this could be changed should be answered by the Study. Enterprise surveys and intensive interviews with key informants in Germany, Austria, Switzerland and Saudi Arabia are main information sources.
The results of the Study show that the relevant frame conditions in Saudi Arabia have improved considerably during the last ten years, Saudi management resources even more.
However, in public administration and application of law problems are remaining. Since many other countries competing with Saudi Arabic have strengthened their competitive position, Saudi Arabia will face now and in future strong competition for FDI especially in the non-oil/gas sectors.
The Saudi Arabian Investment Promotion Agencies, SAGIA (Saudi Arabian General Investment Authority) and SAGECO (Saudi-German Development and Investment Company Ltd.), will base their future promotion strategies on the findings of this Study.
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