The Economics of Industrial Transformation of Oil Rents and Efficiency Analysis of Building Productive Structures)A Comparative Study of Iraq, Saudi Arabia, and Norway)
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Abstract This study provides a comparative analysis of the transformation of oil rents into productive industrial structures in Iraq, Saudi Arabia, and Norway over the period 2005–2025. The research employs a comparative quantitative approach using the Industrial Rent-to-Industry Efficiency Ratio (IRTIER), the Herfindahl-Hirschman Index (HHI), Ordinary Least Squares (OLS) regression, and the Adjusted Net Savings (ANS) indicator. The findings reveal that Iraq records the lowest industrial transformation efficiency (IRTIER = 0.072), accompanied by highly concentrated exports (HHI = 0.843) and negative adjusted net savings (-8.4%), reflecting weak institutional performance. In contrast, Saudi Arabia has significantly improved its industrial transformation efficiency through the implementation of Vision 2030, while Norway achieves the highest levels of industrial efficiency and sustainability through strong institutional governance, fiscal discipline, and its sovereign wealth fund. The OLS results further indicate that oil rent dependence has a statistically significant negative effect on manufacturing growth, whereas governance quality and non-oil public investment exert strong positive effects. The study concludes that institutional quality and the integration of fiscal and industrial policies are the primary determinants of successfully transforming oil rents into sustainable industrial development.
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