When Geography Matters: The potential role of Saudi Arabia’s Geographical Branding in Promoting FDI

Abstract

Background: Nation branding’s role of luring foreign investments should be maximized to the extent, in which the entire dimensions of host countries are adequately harnessed in the development of their image. Geography therefore represents a dimension of a vital importance to nation branding given into account its association with a group of locational advantages. 
 
 Objective: To evaluate the potential role of Saudi Arabia’s geographical branding in promoting FDI. 
 
 Methods: The current study investigated foreign companies seeking to enter the Saudi markets or expand their business within the country. A total of 234 CEOs, general managers and those who hold similar positions with a direct involvement in international affairs were polled in the study. Structural Equation Modeling (SEM) was used to analyze the data collected via AMOS 20. 
 
 Results: It has been revealed that the connecting location, the logistic importance of Saudi Arabia and its closes to important markets showed direct effects on geographical branding. The study has also found that geographical branding meditated the effects of its three pillars on the inward foreign direct investments of Saudi Arabia. 
 
 Discussion and Conclusion: The current study added a new vigor to the literature of nation branding through its ability to shed light on the geographical aspect of it and find correlations between geography and FDI from a nation branding perspective.