507 – Economic Forecasts and Macro Modeling
Statistical Analysis of Economic Development in the Kingdom of Saudi Arabia (KSA)
Ashraf Ahmed
Morgan State University-Institute for Urban Research
Amal Alshehri
Morgan State University
This study analyzed the economic growth of the Kingdom of Saudi Arabia, and its contributing factors. Saudi Arabian economy heavily depends on oil revenue. The heightened competition in the energy market and a big increase in the number of Saudis reaching working age are forcing the Saudi Arabian government to diversify the economy in to power generation, telecommunications, natural gas exploration, petrochemical sectors and expanding the role of the private sector in the healthcare, education and tourism industries. The effects of these factors and their role have assessed using macro-level data. The source of data was the World Bank. Regressions analysis and other relevant methods were used for the analysis to assess the effect of various socioeconomic and development indicators on economic growth (gross domestic product (GDP)). The analysis indicates a positive significant relation of exports of goods and services, export of oil, foreign direct investment, industrial growth, and agriculture on GDP while a significant negative relationship of population size is found with GDP. The results thus provide an indication of growth of effect non-oil factors on economic growth.