Like many other emerging economies, the Gulf Cooperation Council (GCC) countries', the Kingdom of Saudi Arabia (KSA) in particular, and to a lesser extent Egypt and Jordan, have been reforming and developing their foreign direct investment (FDI) regulations to attract more investment. The GCC states witnessed a boom period during the 1970s and 1980s during which, however, there was no significant inflow of FDI into the region. Recently, the economy has been booming again in the GCC countries, due to the increase in oil prices coupled with the huge repatriation of cash from the USA and a number of European countries in the wake of the events of September 11. Accordingly, some reports claim that liquidity has reached its highest point ever in the GCC states. It has been reported that some of this money has been redirected to investments in neighbouring countries, including Egypt and Jordan. Concerns about the present situation are, firstly, that most of these liquid funds are invested in the stock market (see Chapter 4), which means that there is no significant added value from these investments; and secondly, that there is a limited inflow of FDI into the region.