Saturday, 27 April 2013

Law Dissertations | WTO Accession | GCC States | Foreign Direct Investment

Law Dissertations | WTO Accession | GCC States | Foreign Direct Investment

The dissertation aimed to analyze the long term economic impact of WTO on the GCC countries by evaluating level of sustainability, competition and foreign direct investment in the region. Accession to World Trade Organization has helped GCC states to enhance their national business environment and is considered a valuable means for generating domestic payoffs. It maximizes employment opportunities and help in settling trade disputes. However, some overlapping is present between the potential benefits and economic challenges linked with WTO accession especially due to its role in bolstering inflows of foreign direct investment and exports. Among GCC member states, the economic impact of WTO accession on Saudi Arabia has been discussed in detail. To know the perceptions of economic analysts, a semi structured interview session was held with fifteen employees of three KSA companies operating in Riyadh. Findings from both the primary and secondary research revealed that despite having strong GDP, the Kingdom has to confront various threats after joining WTO mainly concerned with increased FDI entry, discriminatory multilateral trade relations and excessive reliance on oil reserves. In spite of all these challenges, the international trade agreements of WTO will have a far reaching impact on the social structure of the Kingdom. For economic diversification, and also for sustaining the development momentum triggered by economic reforms and well investigated budget allocations for less developed industrial sectors, Saudi Arabia has to integrate well with the global trade mechanism thus creating more employment opportunities for domestic population. Privatization and reduction in non tariff barriers will ensure smooth trade relations with foreign counterparts. This dissertation will assess the following objectives;
  • To assess the economic implications of WTO accession for the GCC member states in particular Saudi Arabia
  • To know the extent to which GCC states have adopted the economic legislation put forward by WTO