The effect of oil price shocks on GDP growth in Saudi Arabia and the role of economic vision 2030

Abstract

This Paper investigates the impact of oil price shocks on the Gross Domestic Product (GDP) growth in Saudi Arabia. Given the Kingdom's heavy reliance on oil as a primary revenue source, understanding the dynamics between oil price fluctuations and economic growth is of paramount importance. The research employs a comprehensive economic modelling framework, incorporating various statistical methods and econometric tests to analyse the relationship between oil price changes and Saudi Arabia's GDP growth. By examining historical data and considering covariant factors, the research aims to discern whether direct causal links exist between oil price shocks and economic performance. Preliminary findings suggest a complex interplay of factors influencing Saudi Arabia's economic growth, extending beyond the immediate impact of oil price shifts. The study also delves into policy implications, offering insights into potential strategies for diversifying the economy and mitigating the effects of oil price volatility. This study contributes to the understanding of how oil-dependent economies like Saudi Arabia can navigate the challenges posed by global oil market fluctuations, ultimately striving for sustainable and diversified economic growth.