Saudi Arabia has again scored relatively poorly in the Index of Economic Freedom published by the Heritage Foundation (a conservative US think tank), ranking 54th, and second-last in the Gulf Co-operation Council. This contrasts with its typically strong showings in the World Bank's Doing Business rankings (where it placed a creditable eleventh in 2010). However, Saudi Arabia has made some improvements on the index, with its score improving two points since 2010, and the report cited strong gains in freedom from corruption, property rights, business freedom and better control of government spending.

Arguably the biggest shortcoming in Saudi Arabia's business environment is that of investment freedom, particularly as all foreign investors need to be licensed by the Saudi Arabian General Investment Authority (SAGIA). Furthermore, outside investment is completely prohibited in a series of manufacturing and service sectors. Given that one of SAGIA's stated aims is to encourage external investment in the kingdom, and the government is pinning its hopes on greater participation from the private sector to aid economic growth, it is likely that foreign investment regulation will be reviewed during this year.

As well as deficiencies in its foreign investment climate, the Saudi authorities may be forced to address the large quantities of illicit money leaving the kingdom. Research by a US-based non-profit organisation, Global Financial Integrity (GFI), showed that the country had lost US$320bn over the last ten years, some of it owing to trade mispricing, but the bulk as a result of "the proceeds of bribery, theft, kickbacks, and other forms of tax evasion". Saudi Arabia was the worst performer in the Gulf, and behind only China, Russia and Mexico in the GFI's emerging-market rankings.