FDI in the Middle East

1.Discuss the alternatives.
a.Explain the pros and cons of investing in either Dubai or Riyadh from an FDI perspective.
b.Will Dubai recover from the real estate crisis?

2.The analysis:
a.What is the purpose of the investment?
b.Is it to develop the domestic market?
c.Is it better to serve wealthy clients and move the funds offshore?
d.Or is it to develop a base to attract funds into the country because of the opportunities it offers to investors?

3.The decision:
a.Which do you recommend?
b.How do Saudi policy changes and deregulation impact affect the decision?
c.What changes, if any, would Saudi Arabia need to make to become attractive to the financial sector?
d.What are the risks of investing in Riyadh as compared to Dubai?
e.How would you hedge those risks?