Countries in the Gulf Cooperation Council (GCC) receive low inflows of foreign direct investment (FDI) as a share of gross domestic product (GDP) compared to their global peers. This report explores the underlying reasons for this historical trend examining the countries’ abundance of domestic capital and the substantial barriers to foreign investment that have acted as inhibiting factors thus far.

A suggested method to attract FDI is highlighted in the report, the approach focuses on attracting foreign direct investment into leading sectors that are based on emerging technology, can achieve high growth levels, and have few incumbent players to avoid overcrowding the sector.