Non-Oil Sources of National Income in the Kingdom of Saudi Arabia
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Date
2019-04-04
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Economics
Program
Master of Arts
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Abstract
Saudi Arabia is originally known for its massive oil production which is the main source of GDP. Nonetheless, the Kingdom has recently invested into other economic sectors to ensure that the country does not depend entirely on oil alone. As such, this paper looked at how Saudi Arabia develops its GDP which makes it to be considered among the most massive economies in the world. The study also looked at both the oil-based and non-oil-based sources of GDP. The primary objective of this study was to assess the role of non-oil-based products and services in contribution of the country’s GDP; in addition, to find out the role that oil-based products and services make towards the growth of the country’s GDP. The analysis was carried out based on the data obtained from The World Bank. The statistical methods used for the analysis are Pearson correlation, scatter diagram, simple and multiple linear regression. From the data analysis, oil is the strongest source of GDP growth, which contributes about 90 percent to it. However, there are some non-oil sources displayed as a growing trend in contributing to GDP growth. The significant factors were merchandise exports and service exports. Besides, some other non-oil factors displayed an indication of the growing role in GDP growth. These are high technology exports, goods exports, and commercial services exports. Thus, the effective role of government to the target of Vision 2030 is likely to enhance the share of non-oil in GDP growth and economic development.