The Effect of Digital Transformation on Saudi Economics Growth

The study measures the effect of digital transformation on Saudi Arabia's economy from 2001 to 2022. Descriptive-analytical and econometrics models are used through E-views to achieve this goal. Linear regression was used to test the model, and unit root "Dickey-Fuller" was used to test the durability of the study, co-integration of the "Johansson" validation model, and causality test of Granger; this shows an inversely significant relationship between the number of operations in sales points (POS) and the gross domestic product (GDP). A parallel relationship exists between fixed broadband subscriptions (BS), gross fixed capital formation (GFCF), and labor force (L). The study shows that the dependent variables, the number of POS, BS, GFCF, and L, are all significant factors for the independent variable, GDP, caused by forming an integration relationship between the long-term and short-term. Also, there is a two-way reciprocal causality relationship between GDP and POS and a one-way reciprocal causality between GDP and BS, GFCF, and L. The study recommends improving telecom infrastructure to increase the speed of Wi-Fi and make it available in each location at a low cost.