Search results

High dependence on a particular category of exports results in fluctuations in income as the price of the export item fluctuates. In Saudi Arabia, a single category of mineral exports forms over 78% of the total exports, exposing the country to revenue volatility. The study aims to assess the magnitude of diversification of the export basket for the country. It uses data from 1984 to 2018 to study the importance of non-mineral exports in total exports. It applies Granger causality, variance decomposition, and impulse response function in the vector autoregressive framework. The study also uses the growth-share matrix to evaluate individual items of non-mineral exports. The results show a long-run relationship with a 1% increase in non-mineral exports, leading to a 0.30% increase in total exports. Non-mineral exports Granger-cause total exports. In the long run, non-mineral exports have a share of 64% of the forecast error variance in total exports. Moreover, a 1% shock in non-mineral exports creates a huge initial impact on total exports. Also, the growth rate of non-mineral products is higher than mineral products. The results indicate the importance of non-mineral exports for a predominantly oil-exporting country. Finally, the study attempts to classify its non-mineral export categories based on growth rates and market shares. Targeted emphasis on export category with a strong growth rate and low market share can be an effective strategy for further export diversification.

Purpose of the study: The aim of the study is to find the similarities between the welfare schemes of Indian and Saudi governments, and the burden of these schemes and their impact on society. This study aims to compare and contrast the welfare schemes of two altogether different types of economy. Methodology: This study applies the methodology of comparative analysis by employing descriptive analysis to study both the similarities and dissimilarities of the welfare schemes of Saudi Arabia and India. Main Findings: Indian and Saudi governments have been spending a lot of welfare schemes of their respective GDPs. The intention of these governments is to help the poor to lead a minimum quality of life. Though the intention is genuine and appreciable, in terms of implementation, the two governments have not yet achieved any desired results even after 60 years of introduction. Applications of this study: India and Saudi Arabia can learn from each other in designing and distributing welfare schemes like Saudi Arabia should focus to have targeted compensation and India to use its unique identification numbers to reduce leakages in its schemes. Instead of focusing on giving subsidies, it is better to devise a strategy with a timeframe to reduce poverty by creating many opportunities for the poor to improve their standard of living. Novelty/Originality of this study: The novelty in this study is a comparison of welfare schemes between two countries with two different types of political systems. While both countries are developing in nature, Saudi Arabia falls under a very high-income category country and India falls under the lower-middle-income category country.

As the Kingdom of Saudi Arabia focuses on Vision 2030, there is an immediate need to establish some big manufacturing industries to create jobs and to generate revenue from non-oil sectors. Automobile is one such sector where demand is very high in the Kingdom. Local manufacturing can create a lot of jobs and revenue. This study tries to analyze the scope of automobile sector in the Kingdom. The objective here is to identify the functional value of cars, which can be useful for potential automobile manufacturers. A sample of population is asked about their satisfaction from cars based on five broad factors, namely safety, comfort, aesthetic, instrumentation and engine, through a recent primary survey conducted in 2018. Using structural equation modeling, the study finds that consumers in the Kingdom give maximum importance to the engine of the car. This finding would be helpful for designing the features of a local brand as per the preferences of the local market. Market dynamics indicates a strong consumer base. Future prospects are also promising, as there is strong domestic demand. This can be tapped if production is localized, leading to a development of an entire new manufacturing sector. Finally, the study discusses some feasible options for automobile manufacturing in the Kingdom.