Research Proposal Introduction Within the Saudi Arabian context, the corporate or institutional investors are faced with lack of investment options to invest their surplus in lucrative as well as liquid investment vehicles. The investment options available to the investors do not meet all the requirements attached to standardized money market funds. Even the investment options available do not meet the needs of the corporate treasurer. Under such circumstances, liquidity funds offer themselves as one of the best investment options for the investors. Considering the availability of different investment opportunities in Saudi Arabian capital and money market and the associated limitations, liquidity funds may provide as one of the best alternatives to the corporate and institutional investors. In this context, this research will assess the suitability of liquidity funds as an investment tool in the context of Saudi Arabia, by undertaking qualitative interviews with the professionals associated with investment portfolios. Liquidity Funds – an Overview Liquidity funds represent financial instruments, which channelize the investible surpluses by undertaking to invest in diversified portfolios. These portfolios consist of different money market instruments ensuring superior levels of current returns to the investors. The funds entail low cost and they are operated in a secured way to guarantee the safety of the investments as well. An efficient operational cash management characterizes the liquidity funds. Specialist “liquidity fund managers” carry out the planning and execution of investments and the managers take into account the different investment needs of the clients. Liquidity funds are structured in the same way as that of a corporate entity with a board of directors to regulate the conduct of the affairs of the fund. A liquidity fund takes the form of an open-ended umbrella unit trust. The resources of the fund are invested in various sub-funds. The following figure indicates the typical sub funds making up a liquidity fund. Liquidity funds are more suitable for those investors, who are keen on the security of their capital, and would like to have daily access to their funds (Global Liquidity, 2011). It is also suitable for the investors who are expecting a competitive risk adjusted yield on the funds invested. Liquidity funds will present a suitable investment tool for various types of investors like banks, large corporations, investment banks and institutions, banks and trusts who are desirous of maximizing the returns on the cash held by them, without being exposed to higher level of risks. Several benefits such as risk limitations and holding superior class of assets may accrue from investment in liquidity funds. These distinct advantages of liquidity funds make the investments suitable for the investors in Saudi Arabia Saudi Arabian Economy – an Overview While pursuing the research on the suitability of liquidity funds as an investment tool in Saudi Arabia, it is important to consider the peculiar features of the Saudi Arabian economy, which have strong influence on the movement of money markets within the economy. The Saudi Arabian economy like the economy of any other oil-producing countries is significantly dominated by oil revenues, which predominantly set the overall