International Business. Foreign Direct Investment. Qatar and Saudi Arabia. Political and Economic Challenges

Essay from the year 2016 in the subject Economics - International Economic Relations, grade: 89, The University of Texas at Austin (Business), course: International Business Relations, language: English, abstract: Foreign investment has become a common trend globally. The most significant reasons might include resource seeking, market seeking, efficiency seeking and strategic seeking, as well as expansion. The Middle East has proven to be a conducive business environment for investors. The presence of oil and natural gas in most of the Middle East countries has enabled them to build stable economies and top the list of thriving nations. However, in the recent years, there has been political tensions among these nations. Political and economic stability is an important aspect of attracting foreign investors. Countries such as Qatar and Saudi Arabia have used their economic stability as tools in influencing other countries to wage wars against each other. These and other activities have brought doubt to many investors as to whether they should venture their businesses in these countries. Thus, these countries need to instill trust in foreign investors by settling their disputes and focusing on building their economies.