Dynamics of Economic Transformation in Saudi Arabia: A Comparative Analysis of the Petrol-Based and Tourism-Based Economy
Author : Dr. Mohammad Ahsan Khan, Dr. Syed Mohammad Faisal and Dr. Ahmad Khalid Khan
Abstract :
This Research paper explores the historical trajectory and economic significance of Saudi Arabia's petroleum-based economy, examining key indicators such as GDP, inflation, and interest rates. Beginning with the discovery of oil in the 1930s, Saudi Arabia's economy experienced unprecedented growth, primarily fueled by oil revenues. However, this reliance on oil also exposed the economy to external shocks, emphasizing the need for diversification.
Concurrently, the Research paper delves into the evolution of Saudi Arabia's tourism industry, tracing its transformation from religious pilgrimage to a burgeoning destination for international travelers. With the introduction of Vision 2030, the Saudi government prioritized tourism as a key driver of economic diversification, investing in infrastructure and promotional efforts to attract visitors.
The Research paper further discusses the findings of the Augmented Dickey-Fuller (ADF) test, indicating non-stationarity in tourism receipts and highlighting the influence of factors such as GDP per capita and interest rates. Supplementary regression analysis underscores the significant impact of interest rates and economic prosperity on tourism revenues, providing valuable insights for policymakers and stakeholders.
In conclusion, the Research paper emphasizes the importance of understanding the economic dynamics and factors influencing tourism receipts in Saudi Arabia, offering valuable implications for policy development and decision-making in the tourism sector.
Keywords :
Petrol-based economy, tourism-based economy, GDP, inflation, interest rate
