Impact of fluctuations in global oil prices on Saudi Arabia's gross domestic product: A machine learning analysis

Saudi Arabia's economy is highly dependent on oil exports. This paper examines the relationship between fluctuations in global the oil prices and Saudi Arabia's Gross Domestic Product (GDP) from 1970 to 2022, utilizing machine learning techniques for analysis. The results reveal a strong positive correlation between the oil prices and GDP growth, particularly during periods of high the oil prices, which increase government revenues and stimulate investment. However, this relationship is complex and influenced by various factors, including global oil price changes, geopolitical events, and national economic policies. The study emphasizes the urgent need for Saudi Arabia to diversify its economy to reduce its dependence on oil. By doing so, the kingdom can better manage the risks associated with oil price volatility and enhance its long-term economic resilience, preparing for a more balanced and sustainable future.