Saudi Arabia’s new policies can tackle drop in oil prices: study

The KAPSARC paper found that the Saudi fiscal initiatives play a vital role in keeping the non-oil sector at the heart of the country’s economic development. (Twitter photo)
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Updated 05 March 2020
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Saudi Arabia’s new policies can tackle drop in oil prices: study

A KAPSARC study has revealed that the drop in oil prices after 2012 did not create any structural break in either the long- or short-run relationship of the non-oil GDP with the government’s current and capital expenditure.

The KAPSARC paper found that the Saudi fiscal initiatives play a vital role in keeping the non-oil sector at the heart of the country’s economic development.

The study showed that a 1 percent increase in the current and capital expenditure can lead to 0.3 percent and 0.02 percent increases, respectively, in non-oil sector, which can also be added-value in the long term, while the rise of 1 percent in the contemporaneous growth rates of the current and capital expenditure is associated with 0.13 percent and 0.01 percent increases, respectively, in the non-oil GDP growth in the short run.

The study presented positive effects of labor and capital on the non-oil GDP, showing that a 1 percent rise in both labor and capital each increase the non-oil GDP by an average of 0.51 percent and 0.26 percent, respectively, in the long term.

According to “The Impact of Fiscal Policy on Non-Oil GDP in Saudi Arabia,” the Kingdom implemented a bunch of initiatives, and took adequate measures to raise its capability in reshaping its development plan outside the oil sector.  

These initiatives include energy allowances and other subsidies, private sector development plans, including soft loans to boost economic growth, the implementation of giga projects and the Saudi Vision 2030 realization programs.

Researchers from KAPSARC recommended five policies that would help to achieve Vision 2030 objectives. These are: Focusing on developing human capital by investing in education and vocational training; involving private sector in capital projects; applying more governance reforms to boost productivity; using the fiscal space to support the development of Saudi Arabia’s non-oil economy in the short and long run; and improving the Kingdom’s business environment for domestic and foreign investments.

KAPSARC is a non-profit global institution dedicated to independent research into energy economics, policy, technology, and the environment across all types of energy. The center is focused on finding solutions for the most effective and productive use of energy to enable economic and social progress nationally, regionally, and globally.


iCAUR V27 conquers city roads with new energy technology

Updated 23 February 2026
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iCAUR V27 conquers city roads with new energy technology

A media test drive event focused on premium on-road driving was held in Jeddah. On Feb. 5, iCAUR invited representatives from media outlets, including leading automotive outlet Motory, to take part in an in-depth driving experience featuring the all-round hybrid SUV V27 across urban roads and intercity highways.
Guests gathered at Jeddah’s premium landmark, Millionaire Restaurant, where the iCAUR Saudi Arabia team introduced the V27’s design philosophy and key technologies. Open discussions followed, helping members of the media gain a clearer understanding of iCAUR’s brand vision and the V27’s core strengths ahead of the test drive.
The test drive route covered urban roads in Jeddah as well as inter-city highways leading to King Abdullah Economic City, providing an ideal setting to evaluate the V27’s on-road performance across varied conditions. During long-distance highway driving, range and power remain key considerations, and the iCAUR V27 demonstrated solid on-road performance. As the brand’s first mass-production model equipped with the Golden REEV system, the V27 features a dedicated 1.5T range-extender engine with a thermal efficiency of 45.79 percent. It generates 3.71 kWh of electricity per liter of fuel and delivers a combined range of over 1,000 km, effectively addressing long-distance travel concerns.
On city streets with moderate traffic, the V27 impressed with its smooth and quiet ride. The electric motors deliver responsive, linear acceleration, with seamless start-stop performance that keeps driving relaxed even in traffic. Once on open intercity highways, pressing the accelerator fully unleashes 455 hp from the dual motors, propelling the SUV from zero to 100 km/h in about five seconds. Overtaking and lane changes feel effortless, with no hint of lag at any point.
Even more impressive, this five-meter-long SUV, with a chassis tuned by the internationally renowned racing team Prodive and equipped with an intelligent all-wheel drive system, maintained precise handling at high-speed corners. The steering felt responsive and refined, while the suspension offered solid support, completely defying the typical perception of large SUVs as cumbersome. “I didn’t expect such a large SUV to handle so nimbly — it was enjoyable to drive from start to finish,” one media guest remarked after the test drive. “The intelligent cockpit exceeded all expectations, making long-distance driving both comfortable and enjoyable!”
During the test drive, several media representatives praised the V27’s Stellar Cockpit. The 15.4-inch 3K HD touchscreen delivers crisp, detailed visuals, while the smart infotainment system powered by the 8155 chip ensures smooth operation comparable to a premium tablet, with seamless swiping and no lag. Meanwhile, a temperature-controlled armrest compartment, along with ventilated and heated seats precisely calibrated to the driver’s comfort, kept the driving experience enjoyable throughout the long-distance journey.
Previous test drives at Riyadh’s Edge of the World demonstrated the V27’s off-road capabilities under challenging conditions. The Jeddah media test drive, however, offered a first-hand experience of the V27’s impressive performance in city commuting and intercity highway scenarios. It not only overcomes the typical trade-off between power and range found in conventional new energy vehicles but also seamlessly combines intelligent technology with precise handling, meeting the key expectations of Saudi drivers for on-road performance.
As a model tailored for the Middle East market, the iCAUR V27 made its global debut in the UAE on Feb. 8, followed by a launch in Bahrain on Feb. 10. The arrival of the V27 is expected to bring fresh energy and new possibilities to the region’s premium new energy mobility segment.