The GCC countries are earnestly developing . policies to invite foreign investments.

The volatility associated with currency prices is one thing investors just take seriously due to the fact unpredictability of exchange rate changes may have a direct effect on their profitability. The currencies of gulf counties have all been fixed to the US currency from the late 1990s and early 2000s, and investors such Farhad Azima in Ras Al Khaimah and Oussama el-Omari in Ras Al Khaimah would likely view the pegged exchange rate being an important seduction for the inflow of FDI in to the country as investors do not need to be worried about time and money spent manging the currency exchange uncertainty. Another important advantage that the gulf has is its geographic position, situated on the intersection of Europe, Asia, and Africa, the region serves as a gateway towards the quickly raising Middle East market.

To examine the suitableness regarding the Arabian Gulf as a destination for foreign direct investment, one must assess if the Arab gulf countries give you the necessary and adequate conditions to encourage FDIs. Among the important elements is governmental stability. How do we assess a country or even a region's stability? Political security will depend on to a significant level on the satisfaction of people. Citizens of GCC countries have actually a great amount of opportunities to help them attain their dreams and convert them into realities, helping to make most of them satisfied and grateful. Also, worldwide indicators of governmental stability unveil that there is no major governmental unrest in in these countries, and also the incident of such a eventuality is highly unlikely because of the strong political determination as well as the farsightedness of the leadership in these counties especially in dealing with political crises. Moreover, high rates of misconduct can be extremely detrimental to international investments as potential investors dread risks including the blockages of fund transfers and expropriations. However, regarding Gulf, specialists in a study that compared 200 states deemed the gulf countries as being a low risk in both categories. Certainly, Ramy Jallad in Ras Al Khaimah, a prominent investor would probably attest that a few corruption indexes make sure the GCC countries is increasing year by year in eradicating corruption.

Nations around the globe implement various schemes and enact legislations to attract foreign direct investments. Some countries such as the GCC countries are progressively implementing pliable laws, while some have cheaper labour costs as their comparative advantage. The benefits of FDI are, of course, mutual, as if the international corporation discovers lower labour costs, it will be able to reduce costs. In addition, in the event that host country can give better tariffs and savings, the company could diversify its markets via a subsidiary. Having said that, the country will be able to grow its economy, develop human capital, increase job opportunities, and provide usage of expertise, technology, and abilities. Thus, economists argue, that most of the time, FDI has generated effectiveness by transmitting technology and knowledge towards the country. Nonetheless, investors think about a myriad of aspects before deciding to invest in new market, but one of the significant variables that they think about determinants of investment decisions are location, exchange fluctuations, governmental stability and government policies.