Oil money, though not the sole source of Saudi Arabia's significant wealth and stability, has played a major part in the country's ability to ride out this economic storm largely unscathed, with hardly a misstep in their march of progress (Siddiqi 2008).
A repetition of a similar analysis at the end of 2009 shows that the country has in fact taken a hit form the global economic downturn, which could hardly be avoided, but the picture is far from dire for Saudi Arabia (Siddiqi 2009). Infrastructure investment is still taking place, and a more in-depth analysis of Saudi Arabia's long-term spending and industries shows that the country's non-oil sectors have had a combined growth of more than five percent over the previous five years, with manufacturing, transportation, and telecommunications each increasing nearly ten percent over the same period (Siddiqi 2009). All of this points to a great deal of potential profitability and success through direct investment in the country, and such investment has continued despite the tightened capital available throughout the world (Siddiqi 2009). Despite this phenomenal and continued growth, however, the real motivational factors are often overshadowed by perceived barriers to investment.
Methodology
Two research tools were developed for use in this study, in accordance with the issues identified n relevant literature and according to validated and verified practice within the field. The primary research too, and the only instrument from which any data was ultimately gathered, was a questionnaire meant to ascertain certain details of the business -- the British firm -- to which the questionnaire had been sent, and the specific individual responding to the questionnaire. The central research questions were also addressed, and the respondents were asked to rank a set of ten motivational factors and ten barriers to direct investment in Saudi Arabia in order of their perceived importance. Questionnaires were distributed via email to individuals at over one hundred British firms representing a wide array of different industries and organizational models; the response rate of thirty-eight percent was lower than had been hoped for but still provided a large enough data population to allow for a preliminary statistical analysis with a substantial degree of confidence.
An interview was also developed in the hopes that the CEOs of several of the firms contacted might be able to devote some time to this research. The interview was to be conducted largely along the same lines as the questionnaires, but was kept more open ended and allowed for greater discussion and clarification of the perceived motivations and barriers to direct investment in Saudi Arabia. At the scheduled date for the conclusion of the data-gathering process, over a month after initial contact had been made, only a handful of apologetic refusals to interview requests had been received.
Statistical analysis of the qualitative data collected, consisting of regression and chi-square analysis to determine the degree of prevalence of certain barriers and motivational factors, was also conducted. Comparisons of ranking responses to business types and degrees of firm investment in Saudi Arabia were also conducted, and individual details of the specific respondents -- namely the number of years the individual had been with the...
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