The Study About Problems Exist In Saudi Arabia Utilizing Foreign Capital And Relevant Countermeasures

In recent years, Saudi Arabia attaches great importance to the utilization of foreign investment, foreign direct investment not only rich sources of investment and capital, it is an effective way with the standards of international marketing network introduction of production technology, science and technology, innovation, and organizational and management experience. Thanks to its economic size and demographic advantage, Saudi Arabia has been the country's largest foreign direct investment destination, but in recent years this position has been consolidated and strengthened. A lot of foreign direct investment fully reflects Saudi Arabia's strong economic growth momentum, the vast business opportunities and investment-friendly environment. Currently, Saudi Arabia's foreign direct investment inflows mainly in the energy and industrial projects, as well as financial services, real estate and project contracting and other industries, to promote the economic diversification process in Saudi Arabia, to improve the level of economic output and job creation contribution. In 2014, Saudi Arabia to attract foreign direct investment(FDI) was $ 8.012 billion(30 billion riyals), down 6.9% from $ 9.298 billion in 2013 year on year.In this paper, literature review on the status of foreign investment in Saudi Arabia's study elaborated by the use of international direct investment theory, the use of the main problems for Saudi Arabia in the presence of foreign direct investment, foreign capital from the starting stage of development, discussed the use of foreign quality direct investment, size, structure, modalities and foreign policy, put forward a series of practical and feasible countermeasures and suggestions. Through the study found: terrorism and serious threat to the competition to attract foreign investment in Saudi Arabia's pace, while in terms of foreign investment, in Saudi Arabia relatively undiversified economic structure, the domestic economy over dependent on the oil sector is also an urgent need to solve the problem. Saudi Arabia to promote better use of foreign capital measures and proposals are: to promote its investment policies; adjust the industrial structure of the investment; further opening of the stock market; increased focus on the introduction of technical foreign capital; optimize the industrial structure.