The Kingdom has put foreign investment in its priorities, and investment has become a major hub not only to enhance its vision, but also be an effective tool in the economic transformation process that is mainly based on attracting more foreign investment.
This paper examined econometric modelling foreign direct investment inflows in Saudi Arabia during the period 1990-2019 and forecasting using Box-Jenkins ARIMA model approach. The study shows that the net foreign direct investment inflow in Saudi Arabia is integrated of the first order. Based on the number of significant coefficients.
The result of the study shows that net foreign direct investment inflows in Saudi Arabia are likely for exhibit upward trend in the next decade which is not significantly different from values of FDI inflows in Saudi Arabia in the recent years.
The study also provides policies recommendations to assist policy makers and the Saudi Arabia government on better ways to accelerate and maintain higher level of net foreign direct investment inflows in Saudi Arabia.