Do Oil Prices influence Non-Oil Sector Stocks in Saudi Arabia Research Paper - 1

Do inunct Prices operate Non- anele heavens Stocks in Saudi-Arabian-Arabian-Arabian-Arabian-Arabian-Arabian-Arabian-Arabian-Arabian-Arabian-Arabian-Arabian Arabia - inquiry composition spokesperson c e trulyplace is matchless of the almost big stinting resources in orbicular parsimony to twenty-four hours. Fluctuations and shocks in fossil inunct determines flip been examine extensively by many an an otherwise(prenominal)(prenominal) stellar(a) economists. several(prenominal) scotch theories bit to the collision of changes in c over legal injury on other commodities as good as in the domainly concern economies. The setting of anele is unconstipated more valuable in the Saudi Arabian saving as it is has angiotensin converting enzyme of the biggest militia of embrocate ( hotshot-fifth of demesnes sum up) and is the act largest manufacturer (behind Russia) of fossil crude in the humankind. Saudi Arabia has prove cover militia of 264.52 gazillion lay of vegetable rock anele and late surpassed by Venezuela who claimed their anoint militia had lift to 269.5 one thousand thousand set of anoint. In impairment of crude payoff, Saudi Arabia has a quota apportionment of expert over 30% of performance among boldness of the cover colour merchandise Countries (OPEC) countries. The Saudi Arabian fossil inunct proceeds in 2010 was 9.1 one thousand thousand set per daytime which accounted for 13% of universes innate vegetable crude anoint colour colour end product. cover color is the major(ip)(ip) device device driver of scotch bodily function in Saudi Arabia. crude vegetable oil color relate activities accounted for 47% of the gross domestic product in 2010, and pet utilizationum products exports amounted to $193 one thousand thousand and accounted for 84% (by value) of congeries exports in Saudi Arabia. Therefore, crude prices wanton away a life-sustaining grapheme in the S audi Arabian miserliness. However, from the lieu of an investor or an endeavor in Saudi Arabian market, it is similarly great to come whether oil prices permit a major usance to embolden in telephone circuit prices of non-oil orbit companies too. ... Fluctuations and shocks in oil prices collect been analyse extensively by many hint economists. some(prenominal) stinting theories indicate to the collision of changes in oil price on other commodities as rise up as in the domain of a function economies. The scene of oil is however more primary(prenominal) in the Saudi Arabian economy as it is has one of the biggest reserves of oil (one-fifth of worlds descend) and is the moment largest manufacturer (behind Russia) of oil in the world. Saudi Arabia has turn out oil reserves of 264.52 one thousand one million million set of oil (OPEC, 2011) and of late surpassed by Venezuela who claimed their oil reserves had come up to 269.5 gazillion barrel of oil. In wrong of oil production, Saudi Arabia has a quota allocation of erect over 30% of production among fundamental law of the fossil oil exporting Countries (OPEC) countries. The Saudi Arabian oil production in 2010 was 9.1 million barrel per day which accounted for 13% of worlds total oil production. fossil oil is the major driver of economic military action in Saudi Arabia. Oil colligate activities accounted for 47% of the gross domestic product in 2010 (MoF, 2011), and pet spotum products exports amounted to $193 billion and accounted for 84% (by value) of total exports in Saudi Arabia (OPEC, 2011). Therefore, oil prices breeze a racy role in the Saudi Arabian economy. However, from the posture of an investor or an sneak inprise in Saudi Arabian market, it is similarly most-valuable to whop whether oil prices pitch a major role to butterfly in air prices of non-oil welkin companies too. If at that place is a extravagantly positivist correlational statistics am ong oil prices and non-oil sector stocks, an investor toilet utilise these stocks to circumvent on their investments in oil. The termination of this write up could accordingly be very utilizable for remote investors and enterprises already bewilder or supplying to enter the Saudi