MGT 321 Report: Comparative Analysis of FDI Regulations and Markets

This report provides a comparative analysis of the Foreign Direct Investment (FDI) environments in Saudi Arabia, the United Arab Emirates (UAE), and Qatar. The report begins by comparing the FDI environments and regulations of the three countries, highlighting the varying degrees of openness to FDI and any existing restrictions. It then analyzes the values of the countries' currencies, comparing them against major currencies like the US Dollar, Japanese Yen, British Pound, and Swiss Franc to assess their viability for FDI investors. Following this, the report delves into the political and economic challenges faced by each country, including the influence of political ideologies and economic developments. The legal and cultural challenges, such as the influence of Sharia law and cultural norms, are also analyzed. Finally, the report explains potential market entry strategies for investors, concluding with a recommendation for the most viable investment option based on the overall evaluation of each country's environment.

Running head: MGT 321
MGT 321
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Table of Contents
1. Comparing FDI environment & regulation of Saudi Arabia:................................................2
2. Analysing the values of countries’ currencies:......................................................................2
3. Analysing the political and economic challenges:.................................................................3
4. Analysing the legal and cultural challenges faced by the country:........................................4
5. Explaining the market entry strategy for the country:...........................................................4
Reference and Bibliography:......................................................................................................6

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1. Comparing FDI environment & regulation of Saudi Arabia:
Saudi Arabia is mainly considered a barred nation, where relevant involvement of
FDI is not support by the government, which led to the banning of FDI in 22 companies.
Saudi Arabia has been removing the ban on investments, which could directly help in
improving economic growth. UAE national mainly support the FDI investment, where 51%
share should be held by UAE personnel. However, the lenient rules, absence of taxation
system and cheap energy mainly helps in attracting Foreign Direct Investment (FDI) into the
country, which might help in improving economic growth. The third investment country is
the Qatar, where leniency in FDI rules are present, as the it has sound quality infrastructure,
lowest tax ate and pegged currency to US dollars (Al, Lazarova and Di 2017). Moreover, the
organisation with help of reduced legal attribute are able to attract more FDI into their
vicinity. However, the lack in skilled labour and small economy mainly increases hindrance
for FDIs, which might reduce foreign investment in the country. From the overall evaluation,
the investment in Qatar is mainly identified to be one the best possible option, as the country
could support activities of the Foreign Direct Investment.
2. Analysing the values of countries’ currencies:
The relevant valuation of the currencies can be conducted by selling Qatar Riyal,
Saudi Riyal, and UAE Dirham with US Dollar, Japanese Yen, British pound and Swiss Franc.
This comparison of the valuation could directly help in depicting viability for the FDI
investors. The table below mainly helps in identifying the relevant benefits that could be
generated for FDI investors for increasing their exposure within Qatar, Saudi, and UAE.
US Dollar Japanese Yen British pound Swiss Franc
Qatar Riyal $ 0.275 JPY 31.57 £ 0.226 CHF 0.28

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Saudi Riyal $ 0.267 JPY 30.66 £ 0.219 CHF 0.27
UAE Dirham $ 0.272 JPY 31.30 £ 0.224 CHF 0.27
From the overall evaluation of the above table relevant scope for Swis Franc Investors
are there for conducting investments in Qatar, as it provides higher value for the international
investors. This could directly allow the FDI to increase their exposure in Qatar and
adequately conduct business in the country. Moreover, analysis for the three currency high
and fall in currency value of Qatar Riyal, Saudi Riyal, and UAE Dirham mainly helps in
detecting viability for FDIs (Elmawazini 2014). From the currency valuation, Qatar is mainly
identified to be one the best option for among its peers.
3. Analysing the political and economic challenges:
Currently Saudi Arabia is mainly under personal ideology and political pragmatism,
where the king takes relevant decision for welfare and economic development. However, the
current developments in Saudi Arabia mainly states the relevant prospects for FDIs to
generate higher return from investment in the country. The technological development in
Saudi Arabia could provide both economic and political leniency to the FDIs. The political
and economic changes in Qatar mainly indicates the relevant progress, where the country is
rule by Al Thani family. The main aim of royal family is to improve economic condition of
the country by using all the relevant measures. The country is mainly progressing immensely
and producing 25 billion barrel per year and is set to host the World Cup of 2022. The
political agenda of the country is to improve economic growth and FDIs, which might help in
acquiring more wealth for the citizens. Furthermore, UAE is mainly a Government, where the
main aims is to implement growth by using open economy (Khan and Agha 2015). There is
less restrictions in UAE, as Qatar who focuses in development. From the overall valuation,

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Qatar is mainly identified to be one the progressing countries who needs change in their
vision and are willing to implement higher growth models in the country.
4. Analysing the legal and cultural challenges faced by the country:
Saudi Arabia and Qatar mainly follows Sharia law for maximum of the ruling and
cases conducted in the country. However, Saudi Arabia rigorously follows the Sharia law in
all the business activities and relevant case. This mainly reduces the overall change of FDIs
to be protected from different laws of the country. On the other hand, Qatar is mainly
governed under mixed rule of Sharia law and civil law, where compliance with company law
can adequately followed within the country (Sbia and Alrousan 2016). Lastly, UAE mainly
has constitutions and the UAE law, which directly reflects both Islamic law and International
law. The overall legal and cultural challenges Qatar is mainly identified to be the best viable
option for FDIs.
5. Explaining the market entry strategy for the country:
The overall evaluation of the relevant cultural, economic, legal and investment
environment could help in identifying viable investment option for the FDIs. The market
strategy of using a good partner for the market entry could be used for adequately conducting
business in the host country. This relevant partnership could allow the FDIs to conduct
business in the country and generate higher revenue from investment.
From the overall evaluation of the prospects provided by Qatar, Saudi, and UAE,
Qatar is mainly identified to be the most viable option for FDIs. The relevant progress and
growth prospects in Qatar could allow the FDIs to conduct investment and generate higher
return in future. Therefore, the Swedish investor to conduct investment in Qatar, where

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relevant currency valuation is also high and could allow the investor to increase investment in
the country.