Empirical analysis shows risk management influences economic growth in Saudi Arabia, highlighting digital reforms and human capital investment.
This study empirically examines the impact of multidimensional risk management on achieving Sustainable Development Goals (SDGs) in Saudi Arabia, particularly in alignment with the objectives of Saudi Vision 2030. This study utilizes annual data from 1990 to 2024 and employs the Autoregressive Distributed Lag (ARDL) bounds testing approach to examine the short-run and long-run relationships between economic growth, as measured by GDP, and five key risk dimensions: governance effectiveness, financial development, environmental pressure, human capital, and oil price volatility. The empirical evidence indicates a long-term cointegration relationship among the variables. Findings indicate that government effectiveness and investment in human capital are important positive factors influencing long-term economic growth, thereby validating the importance of institutional improvements and educational expenditures. In contrast, fluctuations in oil prices and environmental pressures yield adverse effects, highlighting issues related to resource dependency and ecological degradation. Financial development exhibits a negative long-run impact, indicating potential inefficiencies or diminishing returns in loan distribution. The study offers essential policy recommendations, such as expediting digital governance reforms, allocating financial resources to non-oil SMEs (SDG 8), aligning educational curricula with labor market demands, and implementing stricter environmental regulations to separate economic growth from emissions.
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Derouez et al. (2025) studied this question.
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