The GCC countries are actively implementing policies to draw in international investments.

The volatility associated with currency rates is one thing investors simply take seriously since the unpredictability of currency exchange rate changes might have a visible impact on the profitability. The currencies of gulf counties have all been pegged to the US currency since the late 1990s and early 2000s, and investors such Farhad Azima in Ras Al Khaimah and Oussama el-Omari in Ras Al Khaimah may likely view the fixed exchange price as an important seduction for the inflow of FDI into the country as investors do not have to worry about time and money spent handling the foreign exchange uncertainty. Another essential benefit that the gulf has is its geographic position, located at the intersection of three continents, the region serves as a gateway to the quickly growing Middle East market.

To look at the suitableness of the Persian Gulf as being a location for foreign direct investment, one must assess whether the Arab gulf countries provide the necessary and adequate conditions to promote FDIs. One of many important elements is governmental security. How can we assess a country or perhaps a region's security? Governmental security will depend on up to a significant extent on the satisfaction of people. People of GCC countries have an abundance of opportunities to help them attain their dreams and convert them into realities, helping to make a lot of them satisfied and happy. Also, global indicators of governmental stability show that there is no major political unrest in in these countries, and also the incident of such a eventuality is highly unlikely given the strong political determination plus the vision of the leadership in these counties especially in dealing with political crises. Moreover, high levels of misconduct could be extremely harmful to foreign investments as investors fear hazards for instance the blockages of fund transfers and expropriations. Nonetheless, in terms of Gulf, experts in a study that compared 200 states classified the gulf countries being a low risk in both aspects. Indeed, Ramy Jallad in Ras Al Khaimah, a prominent investor would likely attest that a few corruption indexes confirm that the region is improving year by year in cutting down corruption.

Countries across the world implement different schemes and enact legislations to attract foreign direct investments. Some countries such as the GCC countries are increasingly adopting flexible laws and regulations, while others have reduced labour expenses as their comparative advantage. Some great benefits of FDI are, needless to say, shared, as if the multinational business discovers lower labour costs, it'll be able to minimise costs. In addition, in the event that host country can grant better tariffs and savings, the company could diversify its markets by way of a subsidiary. On the other hand, the state should be able to grow its economy, cultivate human capital, enhance employment, and provide usage of expertise, technology, and skills. Hence, economists argue, that most of the time, FDI has generated effectiveness by transmitting technology and know-how to the host country. Nonetheless, investors look at a myriad of aspects before making a decision to move website in a country, but among the significant variables that they consider determinants of investment decisions are geographic location, exchange volatility, governmental security and government policies.