Economics of Oil in Developing Countries between the Dutch Disease and the Norwegian Experience: An Empirical Study on Saudi Economy

Abstract

The present study was conducted to identify the challenges facing the Saudi economy, which delay and prevent its progress and development, and the extent of the relationship of these challenges to the Dutch disease; this study also probes into the possibility of using the Norwegian experience to tackle these challenges. The researcher utilized the historical, descriptive, analytical and inductive approach to achieve the objectives of the study through the study of the concept of the Dutch disease, the reasons for its emergence, oil experience of Norway, and then the experience of the Saudi economy.

This study concluded that the most important challenge facing the Saudi economy is its dependence only on oil, so that the aspects of Dutch disease mostly apply to the Saudi economy, and that the Norwegian experience is no longer in some respects appropriate for tackling the Saudi economy at the moment. The present study recommended diversifying the Saudi economy, reconsidering policies of energy subsidies and developing funds to consolidate the economic stabilization process.

Keywords: oil economics, Dutch disease, Norwegian experience, Saudi economy