The economic growth cannot depend on the oil revenues and the spending on the public to fuel their economy due to the change in the global market and demographic changes. The oil shocks regulated by the international capital markets determine the current and future transformations of any oil producing country. This paper examines the impact of increased labor productivity in transforming the economy of Saudi Arabia. Saudi Arabia is among the countries that depend on oil revenue for the stability of its economy. However, due to the recent changes in demographics and oil prices, the country is facing crises in the country. Moreover, the country forecasts a population increase, so the need to come up with labor intensive projects by 2030 to absorb the upcoming working class. The research will derive the relationship between labor induced productivity and its ability to transform the Saudi Arabia economy.
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