1. The global financial crisis of 2007-2009 caused several changes to be made in macroeconomic policy management in Saudi Arabia and the UAE in order to reduce the impact of the global crisis on the local economy. Compare and contrast the approaches to such regulation of the UAE and Saudi Arabia, the reasons for such those policy choices, and the impact of each on foreign direct investment.

2. Compare the controls on direct investment in Saudi Arabia and the United Arab Emirates. Which encourages more foreign direct investment?

3. In the case, several firms were surveyed to determine how they determined their choice of foreign country in which to invest. What was the single most important factor to them, and why?

This case deals with analyzing the key drivers of foreign direct investment (FDI) of U.S, Japanese, and European multinational financial services and other service providers investing in the Middle East. In this case, the focus is on investing in Riyadh, Saudi Arabia, and Dubai, United Arab Emirates. A sample of the foreign companies is interviewed to determine the key factors in their decision process, why they selected the form of operation they did, and what their business model is. 

The case is in three sections: the first shows how laws, requirements, and regulations have changed and become more receptive to foreign investment in recent years – this is done by comparing several business environmental characteristic indices and their change over time. The second section examines the exchange arrangements and framework for financial and capital transactions in the countries. The third section examines the experiences of several multinational companies in the financial services sector that have invested in the region.