The Impact of Structural Transformation Trends in The Industrial Sector on The Economic ‎Growth of The Non-Oil Sector in Saudi Arabia

  • Authors

    • Sahbi Gabsi Department of Economics, Business College, Imam Mohammad Ibn Saud Islamic University ‎‎(IMSIU), P.O. Box 5701, Riyadh 11432, Saudi Arabia
    https://doi.org/10.14419/ae6eew26

    Received date: January 21, 2026

    Accepted date: February 7, 2026

    Published date: April 28, 2026

  • Structural Transformation; Economic Freedom; Non-Oil GDP Growth; Industrial Sector; ‎Saudi Arabia; ARDL; Vision 2030

  • Abstract

    This research aims to investigate the impact of structural transformation and economic ‎freedom on non-oil economic growth in Saudi Arabia over the period 1996–2023. Using an ‎Autoregressive Distributed Lag (ARDL) framework, we examine both short-run dynamics ‎and long-run equilibrium relationships among key determinants, including industrial structural ‎change, economic freedom, industrial employment, domestic credit, foreign direct ‎investment, and urban population. The research model consists of measures of industrial ‎structural change, economic freedom, industrial employment, domestic credit to the private ‎sector, foreign direct investment, and urban population, along with interaction terms between ‎structural change and economic freedom. The results show that structural transformation and ‎economic freedom are significant drivers of non-oil GDP growth, with their interaction ‎amplifying the positive effects of industrial diversification under strong institutional ‎conditions. The findings suggest that Saudi Arabia’s Vision 2030 objectives can be achieved ‎by promoting high-productivity sectors, strengthening market-oriented institutions, and ‎supporting industrial employment, investment, and urban-based economic activities to sustain ‎long-term non-oil growth and reduce reliance on oil revenues‎.

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  • How to Cite

    Gabsi, S. (2026). The Impact of Structural Transformation Trends in The Industrial Sector on The Economic ‎Growth of The Non-Oil Sector in Saudi Arabia. International Journal of Accounting and Economics Studies, 13(2), 613-620. https://doi.org/10.14419/ae6eew26