Academic literature on the topic 'Saudi Arabian General Investment Authority'

This paper gauges, both qualitatively and quantitatively, the pertinent variables to corporate governance practices and their relationship to business productivity in the context of the Kingdom of Saudi Arabia. This study was conducted in response to the limited literature in this context. A new code of corporate governance was issued by the Saudi Arabian Capital Market Authority as a direct consequence of the 2006 stock market crash; in 2010, the code was made mandatory for listed firms. Rigorous empirical studies are practical not only for Saudi Arabia and its policy makers but also potentially for solving global investment issues and ensuring security. This study found two variables to have a significant negative relation: chief executive officer turnover and independent board members. Thus, greater rates of chief executive officer turnover are associated with negative firm performance. In addition, independent board directors’ negative value was found to be very close to zero and significant only at the 10% level. Consequently, some caution is required when considering this result.

This study focuses on the paradigm shift towards green investment to enhance the resilience of economies and job opportunities under conditions of severe recession and accelerated environmental challenges, and asks what impact the present scenario of COVID-19 leaves on the economy situation. The present study has only focused on the impacts of environmental factors (EF), environmental consciousness (EC), and temporal orientation (TO) on green investment, testing these using a fixed effects model. A representative sample from a homogeneous group is included in the final dataset. However, panel data of 84 observations from 21 cities during the period 2015-2019 are included in the completed sample. The hypothesis constructed for this study was tested for 84 observations from 21 cities between 2015 and 2019. Data from the Saudi General Authority is extracted and tested through regression models. The results show that environmental factors, environmental consciousness and temporal orientation are likely to influence green investment across different regions in Saudi Arabia. Present knowledge about green investment is contributed to through this study that highlights implications for environmentally friendly production activities.

Drawing on legitimacy and stakeholders’ perspectives, this research aims to investigate the association between investment efficiency, a value-added corporate activity important to firm viability and profitability, and the environmental, social, and governance (ESG) reporting extent in a Saudi Arabian context. A sample of 25 Saudi firms reporting ESG information is used to test the research hypotheses. The sample is listed on the Saudi Exchange, with the research period spanning from 2014 to 2021. An OLS regression analysis shows that adopting ESG disclosure practices promote and maintain corporate investment efficiency. It displays a significant effect of corporate sustainability disclosure on the under- and over-investment levels of Saudi indexed firms. These findings are important in terms of sustainable reporting and development for the Middle East region in general and for Saudi Arabia in particular. They provide confirmation of the importance of ESG reporting as a key driver of enhanced corporate investment and bring additional evidence for regulators, policymakers, and standard-setters in terms of the effect of ESG on each sector.

This study explores the driving factors for attracting Foreign Direct Investment (FDI) inflow in the Saudi Arabian economy in two stages. First, it applies a general to specific approach to form a model reflecting theoretical and anecdotal evidence of the Saudi Arabian economy. Second, we analyse time series data over the years 1984 to 2018. applying Autoregressive Distributed Lags (ARDL) approach, incorporating several structural breaks. This study explores Saudi membership of the World Trade Organization (WTO) and institutional quality, identifying them as promising factors in fostering FDI inflows in the economy. Our empirical investigation demonstrates that the Saudi economy experienced a higher inflow of FDI during the global financial crisis (GFC) due to economic stability. Trade openness is found to be conducive to promote FDI inflow. This study provides several policy implications.

This study explores the influence of green entrepreneurial activity on sustainable development, using institutional economics as a theoretical framework. Also, the role of entrepreneurship policy is analysed in the context of Saudi Arabia. Using information from the General Authority for Statistics from 13 Saudi Arabian cities, the main findings show that green entrepreneurship positively contributes to the economic, social, and environmental components of sustainable development during the period 2012–2017. These results demonstrate a measurable indication of sustainable development outcomes, whereby Saudi Arabian institutions align entrepreneurial activities with a positive triple bottom line effect. Accordingly, these findings contribute new evidence to justify government commitment to supporting green entrepreneurship in Saudi Arabia and encourage future domestic policies.

This research aimed to explore the current situation of the food gap and the food security of poultry meat in the Kingdom, based on secondary published data by the food and Agriculture Organization of the United Nations (FAO), the Ministry of Environment, Water and Agriculture, the General Authority for statistics, the Arab Organization for Agricultural Development (AOAD), and the international information Network. The results indicated a decline in self-sufficiency at a statistically significant annual rate of about 1.5%, representing about 2.9% of the annual average self-sufficiency rate during the study period. This is consistent with the economic logic in terms of increasing the volume of imports at a rate that exceeds 6.3% annually and exceeds the rate of consumption growth (4.43%) over the rate of growth of domestic production (1.73%). The apparent gap increased at an annual statistically significant rate of about 38.5 thousand tons, representing about 7.1% of the annual average gap estimated at around 543.8 thousand tons. It was also found that the most influential factors on the self-sufficiency ratio of poultry meat were the number of imports and the domestic production. Therefore, the strategic stock of poultry meat was estimated at around 621.4 thousand tons, which is sufficient for local consumption for about 7 months, while the value of the food security factor was about 0.58, reflecting the existence of relative food security of poultry meat in the Kingdom. The results of the study also showed the size of the additional loans and investments needed to achieve self-sufficiency and food security for poultry meat in the Kingdom in line with the National Transformation Program and the Kingdom's Vision 2030.

In line with today’s economy, investment and financial awareness are necessary for success and an individual’s well-being, specifically for the younger generations. Therefore, this study aims to examine the relationships between financial literacy, saving behavior, a lack of self-control, family financial socialization, and investment awareness. Further, it investigates the moderating role of both family financial socialization and the lack of self-control in these relationships. Employing a quantitative study technique and partial least squares structural equation modeling (PLS-SEM), we analyzed a sample of 409 students representing young adults at King Faisal University, specifically in the School of Business. Our results indicate that financial literacy, saving behavior, and family financial socialization are significantly and positively related to investment awareness. Interestingly and as expected, a lack of self-control negatively and significantly affects investment awareness. For the moderating impact, it was found that the connection between financial literacy, saving behavior, and investment awareness is positively and strongly moderated by family financial socialization. Likewise, a lack of self-control significantly and negatively moderated the association between financial literacy, saving behavior, and investment awareness. The results of this study provide substantial implications for regulators, educational organizations, individuals, and their families.

Purpose – The purpose of this study is to synthesize the existing research on Islam and advertising with the perspective of the Salafi authority of Saudi Arabia. This study is an exploration of the impact of the conservative interpretation of Islam on advertising. Design/methodology/approach – This study critically reviews the literature on advertising in Islam, specifically in the context of the conservative religious Saudi Arabia, Islam and advertising and its connection with the interpretations of the religiously conservative segment of Saudi Arabian society. This systematic review covered 42 studies in Islamic advertising and Salafist/Hanbali jurisprudence, ranging from 1980 to 2014. These studies were validated through data triangulation using a meta-synthesis of 39 articles with 5 articles on Salafism and 5 Hanbali juristic texts. Findings – The investigation concludes that there are several factors to be considered when developing advertising messages and content for the conservative segment of Islam. The considerations are as follows: (C1) avoidance of Islamic creedal taboos and displays of immorality; (C2) avoiding usage of musical instruments and taboo entertainment; (C3) women must be dressed appropriately, and gender roles must be in conjunction with Islamic texts; and (C4) avoiding deceptive marketing, defaming competition, and ambiguous transactions. Although there was a general consensus on C1 and C3, few studies discussed C2 and C4. Hanbali jurisprudence, the official school of thought in Saudi Arabia, was found to be in agreement with all four considerations. Additionally, the study synthesizes previous studies and contributes more knowledge to the few existing literature on the topic of Islam and advertising. A better understanding of the conservative interpretation of Islam can contribute to scholarship in the field of Islamic marketing. Research limitations/implications – This paper was limited to the Salafist/Wahhabist interpretation of Islam based on Hanbali jurisprudence found in Saudi Arabia. The findings of this paper can be extended and validated through studying the attitudes of Salafists in different regions toward advertising messages and content. Practical implications – This paper was limited to the Salafist/Wahhabist interpretation of Islam based on Hanbali jurisprudence found in Saudi Arabia. The findings of this paper can be extended and validated through studying the attitudes of Salafists in different regions toward advertising messages and content. Originality/value – This study adds to the limited research on Islamic attitudes and challenges toward advertising in the Middle East. The study reviews existing research and utilizes religious rulings to research the conservative Islamic perspective of advertising.

This study examined the impact of cost stickiness on firm profitability in different industrial sectors in Saudi Arabia. The sample size for the study consists of 102 companies listed on Tadawul (Saudi Stock Exchange) from 2009 to 2018. The study estimated a panel regression using pooled OLS, fixed and random effects, and Generalized Method of Moments (GMM). The variable Return on Investment (ROI) is used as a proxy to measure a firm’s profitability. The results of all the three models are similar to each other. The study found a negative and significant correlation between profitability and cost stickiness, indicating firms’ inability to control the selling, general and administrative costs (SG&A), ultimately leading to lower profits. In addition, firm size is positively associated with profitability, indicating that larger firms are more profitable compared to smaller ones, while the leverage is negatively related to profitability, indicating that companies have higher debts.

Globalization has inevitably transmuted fraud into a transnational hazard and raised significant apprehensions. Fraud affects organizations worldwide irrespective of nature, size, profitability, or industry. The pervasive nature of fraud serves a premise to study the menace further. Hence, this research investigated the perceptions among accountants and auditors on the effectiveness of fraud detection and prevention by public and private Saudi organizations. This research presented an exploratory case study within the Saudi Arabian social, economic, and cultural environment. Data-gathering through inquiries and questionnaires were performed among accountants, internal and external auditors from public and private sectors. The results revealed that accountants and auditors in Saudi private and public firms were highly cognizant on fraud awareness, general guidelines, subsequent responsibilities, and reporting venues. In addition, both sectors were found to have invested extensively in fraud detection and prevention technologies. Also, employees were found not have been regularly trained on fraud prevention and detection. Furthermore, forensic accounting, being a relatively new genre in fraud detection and prevention, is found sparingly utilized among public and private sectors’ organizations. Forensic accounting is yet to be accorded adequate authority in the Saudi context, and was found superficially placed under the Saudi Organization of Certified Public Accountants (SOCPA). Despite qualification, experience, and age being recognized as key elements to Saudi accountants and auditors in fraud detection and prevention, lack of proper training leaves employees with limited dexterity and exposes them to legal repercussions. In general, the current legal infrastructure in Saudi Arabia needs to be revisited to improve effective detection and prevention of fraudulence. This study provided insights into the Saudi Arabian fraud detection & prevention, hardware, infrastructure, and human resources as the contributors of a fraud-free society.

Foreign direct investment (herein referred to as FDI) has been viewed through time as one of the core drivers of economic growth. Regardless of their ideological variances, many countries throughout the world today aim to increase the level of competition in order to attract FDI. This study focuses on the Kingdom of Saudi Arabia, an oil rich nation that has until now, predominantly relied on its revenue stream derived from its natural resources. However, now the Kingdom must adapt and respond appropriately to the challenges of global competition, which have consequently forced the government to invest in non-oil sectors. As a result, the Saudi government has encouraged foreign companies to invest in the nation, through its Economic Vision 2030 initiative. However, against a backdrop of declining foreign direct investment (FDI) in recent years and associated factors related to the political, business and economic environment, Saudi Arabia may find it extremely difficult to successfully implement its Economic Vision 2030 without appropriate solutions and adequate planning processes to combat these obstacles to economic growth and revenue diversification. It is therefore necessary to identify the major causes of this declining trend of FDI and implement appropriate methods to improve FDI inflows in order to meet Vision 2030’s specified objectives. In this regard, the study had two main concerns. Firstly, to investigate whether Saudi Arabia’s business environment is conducive to attract FDI, particularly in non-oil sectors. Secondly, to examine the factors that determine the motivation of foreign companies to invest in Saudi Arabia. A mixed method approach of surveying top executives of foreign firms and interviewing top managers of the Saudi Arabian General Investment Authority (SAGIA) was adopted as the research strategy. The quantitative survey data were analysed using descriptive statistics and frequency estimations (Shapiro-Wilk test). For thematic analysis of qualitative data on interviews, the method of Braun and Clark (2006) was used. The key findings are summarised as follows. The main problems of FDI in Saudi Arabia are associated with a decline in the efficiency of financial markets and credit growth, increasing interest rates, restrictive labour laws, slow pace of facilitation steps of FDI, stagnant investment climate, imbalances of crucial natural resources and insufficient guarantees and policies. The Vision 2030 contains a comprehensive plan for a large-scale skills enhancement programme to solve this problem; however, this will undoubtedly take time. Until then, the effect of skills shortage linked to the ‘Saudisation’ of FDI will continue. More than 10,000 foreign firms have closed because of this problem. The negative message sent by these companies may adversely affect the image of Saudi Arabia and thus negatively affect any future FDI inflows. The range of natural resources is very narrow, and hence, costs are high. Notably, lack of quality and consistency are important FDI deterrents. The geographic location of Saudi Arabia gives it a strong strategic advantage. However, negative factors mentioned earlier may counter this advantage compared with other strategically located countries equipped with better services. Market liberalisation in Saudi Arabia is imperfect. Currently, the country is focusing on attracting FDI from selected countries in selected sectors. But with existing limited capabilities, market liberalisation may have limited impact in increasing FDI in Saudi Arabia. Ruled by a monarchy, Saudi Arabia does not have any significant political instability. It can be considered as a stable nation. Rather, Saudi Arabia has a negative image due to gender discrimination. Lack of consistency in business regulations in dealing with the government, bureaucracy, cronyism (Wasta), poor enforcement by the legal and judicial systems and the potential effects of religion and culture have also been identified as FDI- negative factors. Progressive easing of laws and policies not conducive to FDI have been implemented since 2000 but have not been effective. SAGIA has limitations regarding simplification of approval procedures thus making it difficult for FDI seeking firms. Only limited success has been achieved by the Crown Prince and SAGIA in attracting FDI into Vision 2030 projects, primarily because of lack of support from other departments. Global investment forums are not specific to Saudi Arabia; many countries conduct similar conventions to attract FDI. Although policies are being evaluated, actual change has not occurred, even after two years of Vision 2030. Administrative weakness is a barrier to the FDI targeted in the Vision. In addition, Islamic laws are a deterrent to outsiders; at least for foreign investors, personal and religious independence need to be guaranteed to improve FDI outcomes. The findings from the study make a major contribution not only to existing knowledge but also adds to new knowledge highlighting the main problems, barriers, and obstacles of FDI inflows in Saudi Arabia. The study’s findings will also benefit both the SAGIA and foreign firms looking to invest in Saudi Arabia. The study concludes with several recommendations and future research directions.