MNCs and Development
Is it possible for Saudi Arabia to be where it is now economically without the involvement of MNCs? Was development and human capital formation in the Kingdom facilitated by MNCs? Are there serious political risks for MNCs operating in the Kingdom? Do MNCs exercise undue infl uence on the government of Saudi Arabia? Do MNCs negatively infl uence societal development in Saudi Arabia? How do Arabian executives view MNCs’ contribution? These and other issues are covered in this chapter. In 2001, there were more than 2,600 foreign corporations and joint ventures (JVs) in the Kingdom (Arab News, 2001). With the recent infl ux of corporations from China, Brazil, and India, the number is expected to be considerably higher. These corporations, whether they are subsidiaries or JVs, engage in a wide range of economic activities.