The Impact of Changes in Oil Prices on the Global and Saudi Arabia Economy

This study aimed to identify the impact of COVID-19 on oil sector which faced the significant challenges, globally and in Saudi Arabia. The study sheds light on the unprecedented crisis that occurred in the decline in demand for oil and the collapse of its prices, and its effects and consequences on world economies and Arab economies, and the extent to which the Saudi economy has been affected by them in light of what markets have witnessed global oil, and opportunities to benefit from this crisis and the study relied on the descriptive and analytical methodology. The study paper will use the NARDL to explain the asymmetric effect of changes in oil price on Government Budget for Saudi Arabia. The study reached that this situation provides a further opportunity for Saudi Arabia to diversify the economy away from a reliance on oil, Government policies seek to facing these challenges by diversifying the economic base and developing and diversifying revenues non-oil products to reduce financial volatility, in addition to enhancing the role of the private sector focusing on supporting non-oil GDP growth rates to enhance the resilience of the economy.