Impact of Renewable Energy on the Economy of Saudi Arabia

Abstract

The objective of the study was to identify the impact of renewable energy on Saudi economy during 2000-2021. Analytical techniques were used to conduct this study. An analysis of the study used a set of variables, in which Renewable energy perceives as independent variable and the dependent variables are GDP per capita, net foreign direct investment, unemployment, fixed capital formation, and net foreign trade. The data of the study were analyzed using the E-views program. According to Results of the study, renewable energy has an impact on certain economic variables and does not have an impact on others. A partial validity is found for the study’s central hypothesis. According to our findings, renewable energy’s impact contributes significantly on net foreign direct investment and unemployment. However, there is no statistically significant of renewable energy on to GDP per capita, net foreign trade, or fixed capital formation. The current study recommends continuous implementation of Kingdom of Saudi Arabia Vision plan 2030, where through it the National Renewable Energy Program will contribute effectively to the support of Kingdom’s economy and development of its human resources to expand investment in new sectors as well as attracting investments from international and local companies.