The impact of oil price fluctuations on Saudi Arabia's economic growth: Strategies for stability and growth: Evaluating the vision 2030 initiative

Abstract

This paper analyzes the Impact of Oil Price Fluctuations on Saudi Arabia's Economic Growth: Strategies for Stability and Growth: Evaluating the Vision 2030 Initiative, It highlights how reliance on oil revenues makes the economy vulnerable to market volatility, impacting fiscal stability and growth prospects. The study analyzes key initiatives such as economic diversification, sovereign wealth funds, fiscal reforms, private sector promotion, renewable energy investments, and market stabilization measures. The Saudi economy is mostly pre-dominant to characterized by its heavy reliance on oil and gas. The study's primary objective is to analyze the economic impact of oil price fluctuation on Saudi Arabia. This also involves examining the data on oil price movement and its correlation as a key indicator to such GDP growth, the government's revenue, fiscal deficits and level of investment. The given study employs a primary qualitative method that explores the impact of oil prices and their fluctuation on Saudi Arabia’s economic growth and evaluation of Vision 2030 initiatives. The results show that a kingdom economy has traditionally been highly dependent on oil revenue, accounting for a substantial portion of its GDP and government budget. The Saudi economy is mostly pre-dominant to characterized through its heavy reliance on oil and gas. Findings suggest that while Vision 2030 has made significant progress toward reducing dependence on oil, ongoing challenges require sustained commitment to structural reforms and market flexibility to ensure resilient and sustainable economic growth in the face of global oil market fluctuations.