INTEREST-FREE LOANS USED BY THE SAUDI GOVERNMENT AS A TRANSFER MECHANISM OF OIL REVENUE TO THE PRIVATE SECTOR (SAUDI ARABIA).

Persistent Link:
http://hdl.handle.net/10150/188183
Title:
INTEREST-FREE LOANS USED BY THE SAUDI GOVERNMENT AS A TRANSFER MECHANISM OF OIL REVENUE TO THE PRIVATE SECTOR (SAUDI ARABIA).
Author:
FOZAN, MOHAMMED NASSER.
Issue Date:
1986
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
Prior to 1970 the Saudi Government faced severe socioeconomic problems two of which were: (1) the contribution of the private sector to the Gross Domestic Product was low, and (2) the oil revenues were the main source of the national income. As the oil revenues rapidly increased between 1972 and 1981, the government used every means at its disposal to encourage the private sector. The goal was to diversify the sources of national income in order to decrease the dependency on oil revenues as the main source of national income. To achieve this the government has provided interest-free loans to the private sector which, along with the demand, has increased the gross domestic fixed capital formation of the private sector. The purpose of this study was to theoretically explain the phenomenal expansion of the private sector. Three models were developed from the least to the most difficult. The main principle of the models is that the expansion of the private sector is stimulated because of the low cost of capital in Saudi Arabia. Since oil revenues (the main source of government expenditures) have decreased in recent years questions have been raised concerning the ability of the private sector to support the economy. It is argued that the demand of national and international markets will increase in the future, thus allowing the private sector to expand further. Even though the cost of capital will increase, Saudi companies will be able to compete either nationally or internationally. In addition, the competitiveness of the Saudi capital market may increase which will, in turn, benefit the Saudi economy.
Type:
text; Dissertation-Reproduction (electronic)
Keywords:
Saudi Arabia -- Economic policy.; Industrial policy -- Saudi Arabia.; Government lending -- Saudi Arabia.; Loans -- Saudi Arabia.
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Business Administration; Graduate College
Degree Grantor:
University of Arizona
Advisor:
Bierwag, Gerald

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titleINTEREST-FREE LOANS USED BY THE SAUDI GOVERNMENT AS A TRANSFER MECHANISM OF OIL REVENUE TO THE PRIVATE SECTOR (SAUDI ARABIA).en_US
dc.creatorFOZAN, MOHAMMED NASSER.en_US
dc.contributor.authorFOZAN, MOHAMMED NASSER.en_US
dc.date.issued1986en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractPrior to 1970 the Saudi Government faced severe socioeconomic problems two of which were: (1) the contribution of the private sector to the Gross Domestic Product was low, and (2) the oil revenues were the main source of the national income. As the oil revenues rapidly increased between 1972 and 1981, the government used every means at its disposal to encourage the private sector. The goal was to diversify the sources of national income in order to decrease the dependency on oil revenues as the main source of national income. To achieve this the government has provided interest-free loans to the private sector which, along with the demand, has increased the gross domestic fixed capital formation of the private sector. The purpose of this study was to theoretically explain the phenomenal expansion of the private sector. Three models were developed from the least to the most difficult. The main principle of the models is that the expansion of the private sector is stimulated because of the low cost of capital in Saudi Arabia. Since oil revenues (the main source of government expenditures) have decreased in recent years questions have been raised concerning the ability of the private sector to support the economy. It is argued that the demand of national and international markets will increase in the future, thus allowing the private sector to expand further. Even though the cost of capital will increase, Saudi companies will be able to compete either nationally or internationally. In addition, the competitiveness of the Saudi capital market may increase which will, in turn, benefit the Saudi economy.en_US
dc.typetexten_US
dc.typeDissertation-Reproduction (electronic)en_US
dc.subjectSaudi Arabia -- Economic policy.en_US
dc.subjectIndustrial policy -- Saudi Arabia.en_US
dc.subjectGovernment lending -- Saudi Arabia.en_US
dc.subjectLoans -- Saudi Arabia.en_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineBusiness Administrationen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorBierwag, Geralden_US
dc.contributor.committeememberWells, Donalden_US
dc.contributor.committeememberWert, Jamesen_US
dc.identifier.proquest8613814en_US
dc.identifier.oclc697295868en_US
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