Abstract
An empirical study of the sectoral diversification of the Saudi Arabian economy reveals that this economy is fast diversifying into non‐oil sector activity. Such a transformation is carrying with it encouraging impacts on productivity growth, economic efficiency and social well‐being. There is also found to occur all‐round intersectoral linkages in the economy. These two patterns of economic change together define balanced and sustainable development for Saudi Arabia in the years ahead. The policy implications of non‐oil sector diversification and intersectoral complementarity and their effects on realizing sustainable self‐reliant development are important conclusions of this paper.
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