Editing Economy of Saudi Arabia (section)

===Foreign investment===
Before 2000, there were strict limits placed on foreign direct investment in Saudi Arabia. The 1979 Foreign Investment Act prohibited foreign ownership in some sectors of the economy, allowed foreign investment only if the investor qualified for a license based on their expertise, and gave priority to businesses that were Saudi-owned or partially Saudi-owned.<ref name="Almahmood">{{cite thesis |last=Almahmood |first=Abdulaziz |date=December 2010 |title=Foreign Direct Investment in Saudi Arabia: Joint Venture Equity Shares and Source Country Characteristics |url=https://theses.ncl.ac.uk/jspui/bitstream/10443/1128/1/Abdulaziz%20almahmood%2011.pdf |publisher=Newcastle University Business School |access-date=15 December 2022 |page=24-25 |archive-date=18 January 2023 |archive-url=https://web.archive.org/web/20230118135539/https://theses.ncl.ac.uk/jspui/bitstream/10443/1128/1/Abdulaziz%20almahmood%2011.pdf |url-status=live }}</ref>

However, in the mid-1990s, foreign ownership rules were relaxed, with investment sought in telecommunications, utilities, and financial services.<ref name="HT2009: 225">[[#HT2009|Tripp, ''Culture Shock'', 2009]]: p. 225</ref> The 2000 Foreign Direct Investment Act made substantial changes to the rules on foreign investment, including allowing projects to be run by 100% foreign-owned companies for the first time.<ref name="Almahmood" />

According to [[United Nations Conference on Trade and Development|UNCTAD's]] June 2018 report, Saudi Arabia's foreign direct investment was only $1.4&nbsp;billion in 2017, down from $7.5&nbsp;billion the year before and as much as $12.2&nbsp;billion in 2012. The fall in investment is attributed to negative intra-company loans by foreign multinationals and various divestments.<ref>{{cite magazine|url=https://www.forbes.com/sites/dominicdudley/2018/06/07/saudi-arabia-shock-collapse-investment/#7c41da966e60|title=Saudi Arabia Suffers Shock Collapse in Inward Investment|magazine=Forbes|access-date=7 June 2018|archive-date=7 February 2019|archive-url=https://web.archive.org/web/20190207002725/https://www.forbes.com/sites/dominicdudley/2018/06/07/saudi-arabia-shock-collapse-investment/#7c41da966e60|url-status=dead}}</ref> In the first quarter of 2018, [[net capital outflow]]s were running at approximately 5% of GDP, compared to less than 2% of GDP in late 2016.<ref>{{cite magazine|url=https://www.forbes.com/sites/dominicdudley/2018/09/21/is-saudi-arabia-unable-or-just-unwilling-to-stem-the-flow-of-money-leaving-the-country/#1b26ad026abb|title=Is Saudi Arabia Unable Or Just Unwilling To Stem The Flow of Money Leaving The Country?|magazine=Forbes|access-date=21 September 2018|archive-date=20 November 2018|archive-url=https://web.archive.org/web/20181120060351/https://www.forbes.com/sites/dominicdudley/2018/09/21/is-saudi-arabia-unable-or-just-unwilling-to-stem-the-flow-of-money-leaving-the-country/#1b26ad026abb|url-status=dead}}</ref> However, according to a report published in Trading Economics, in the second quarter of 2018, [[foreign direct investment]] in the country raised by $882&nbsp;million.<ref>{{Cite web|url=https://www.ceicdata.com/en/indicator/saudi-arabia/foreign-direct-investment|title=Saudi Arabia Foreign Direct Investment (FDI) [2006 – 2018] [Chart-Data-Forecast]|website=ceicdata.com|access-date=23 December 2018|archive-date=24 December 2018|archive-url=https://web.archive.org/web/20181224024046/https://www.ceicdata.com/en/indicator/saudi-arabia/foreign-direct-investment|url-status=live}}</ref> Moreover, [[Saudi Arabian General Investment Authority|SAGIA]]'s data indicate that licenses provided to foreign investment increased by 130% in the first quarter of 2018 as a result of reforms in the economy.<ref>{{Cite web|url=http://www.arabnews.com/node/1319606/business-economy|title=New Measures of foreign Investment in Saudi Arabia|date=11 June 2018|access-date=23 December 2018|archive-date=11 October 2018|archive-url=https://web.archive.org/web/20181011094814/http://www.arabnews.com/node/1319606/business-economy|url-status=live}}</ref>

As Saudi oil income declined in the late 2010s, the kingdom's international debt soared. In December 2018, Saudi Arabia announced it would be issuing [[Bond (finance)|bond]]s worth approximately 120&nbsp;billion riyals ($32&nbsp;billion) to cover its 4.2% GDP deficit of 131&nbsp;billion riyals.<ref>{{cite news|url=https://www.bloomberg.com/professional/blog/saudi-arabia-wants-sell-32-billion-bonds-2019/|title=Saudi Arabia wants to sell $32 billion of bonds in 2019|newspaper=Bloomberg Professional Services|date=20 December 2018|access-date=20 December 2018|publisher=Bloomberg|archive-date=25 January 2019|archive-url=https://web.archive.org/web/20190125183601/https://www.bloomberg.com/professional/blog/saudi-arabia-wants-sell-32-billion-bonds-2019/|url-status=live}}</ref> In January 2019, the kingdom sold bonds worth $7.5&nbsp;billion.<ref>{{cite news|url=https://www.bloomberg.com/news/articles/2019-01-09/saudi-arabia-to-sell-7-5-billion-of-bonds-in-two-parts|title=Saudi Arabia to Sell $7.5 Billion of Bonds in Two Parts|newspaper=Bloomberg.com|date=9 January 2019|access-date=9 January 2019|publisher=Bloomberg|archive-date=25 January 2019|archive-url=https://web.archive.org/web/20190125183604/https://www.bloomberg.com/news/articles/2019-01-09/saudi-arabia-to-sell-7-5-billion-of-bonds-in-two-parts|url-status=live}}</ref> In almost two and a half years, bonds worth $60&nbsp;billion were sold by Saudi, which became one of the biggest borrowers globally.<ref>{{cite news|url=https://www.wsj.com/articles/saudi-arabia-is-raising-money-again-with-international-bonds-11547034391|title=Saudi Arabia Sells More Than $7 Billion in Bonds|access-date=9 January 2019|newspaper=The Wall Street Journal|archive-date=21 March 2019|archive-url=https://web.archive.org/web/20190321162720/https://www.wsj.com/articles/saudi-arabia-is-raising-money-again-with-international-bonds-11547034391|url-status=live}}</ref>

In September 2018, the Public Investment Fund completed a deal with a group of global lenders for a loan of $11 billion.<ref>{{cite web |last1=Martin |first1=Matthew |date=17 September 2018 |title=Saudi Arabia's Sovereign Wealth Fund Raises $11 Billion Loan |url=https://www.bloomberg.com/news/articles/2018-09-17/saudi-arabia-s-sovereign-wealth-fund-raises-11-billion-loan |publisher=Bloomberg}}</ref> The deal raised more than initially planned and was the first time the PIF had incorporated loans and debt instruments into its funding.<ref name="blooms">{{cite web |last1=Nereim |first1=Vivian |date=18 September 2018 |title=Saudi Businesses Are Struggling to Hire Saudi Workers |url=https://www.bloomberg.com/news/articles/2018-09-19/jobs-for-saudis-plan-tests-retailers-used-to-cheap-foreign-labor |publisher=Bloomberg}}</ref> According to data from Fitch Ratings, over two years starting from May 2016 Saudi Arabia went from having zero debt to raising $68 billion in dollar-denominated bonds and syndicated loans—one of the fastest rates among emerging economies.<ref>{{Cite news |last=Jones |first=Rory |date=17 October 2018 |title=Fate of Journalist Heightens Saudi Debt Worries |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/fate-of-journalist-heightens-saudi-debt-worries-1539774000 |access-date=18 October 2018 |issn=0099-9660}}</ref>

Foreign investments in the kingdom witnessed a rapid increase in the first quarter of 2019. The number of new licenses approved for foreign businesses grew 70% over 2018. Most licenses were approved for British and Chinese companies, which drove the increase.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2019-04-28/saudis-issue-70-more-foreign-business-licenses-from-year-ago|title=Bloomberg – Britain, China Lead Way in New Saudi Business Licenses|newspaper=Bloomberg.com|date=28 April 2019|access-date=28 April 2019|archive-date=30 June 2019|archive-url=https://web.archive.org/web/20190630070014/https://www.bloomberg.com/news/articles/2019-04-28/saudis-issue-70-more-foreign-business-licenses-from-year-ago|url-status=live}}</ref> In the first quarter of 2019, foreign investment in Saudi Arabia jumped by 28%.<ref name="auto">{{Cite web |date=24 April 2019 |title=Saudi Arabia sees first budget surplus since 2014 |url=http://www.arabnews.com/node/1487371/business-economy |url-status=live |archive-url=https://web.archive.org/web/20190426232005/http://www.arabnews.com/node/1487371/business-economy |archive-date=26 April 2019 |access-date=1 May 2019 |website=Arab News |language=en}}</ref>