The Impact of Foreign Direct Investment (FDI) on Gross Domestic Product (GDP) in Saudi Arabia from 1997 to 2023: Empirical Study

The study aims to evaluate the impact of foreign direct investment on GDP in Saudi Arabia from 1997 to 2023. Secondary data were taken from World Data. EViews software was used with multiple linear regression and OLS, based on a set of variables and using the standard analytical approach, to analyze the impact of foreign direct investment on GDP in Saudi Arabia. The results of the empirical test show that foreign direct investment contributed significantly and positively to enhancing GDP and reducing dependence on oil exports in Saudi Arabia, and each economic variable has a different effect. Also, the results show that capital formation and consumer spending have positive effects on GDP as they increase economic productivity. Based on this result, the ultimate goal of the Saudi government is to seek to attract more foreign direct investment to increase the economic growth rate to achieve one of the goals of Vision 2030 and the importance of foreign direct investment in achieving economic sustainability in Saudi Arabia, and continue to improve the investment environment and stimulate investment in new sectors.