Examining The Impact Of Interest Rate, Inflation And Balance Of Trade On Saudi Arabia’s Financial Markets Performance

Emirati Journal of Business, Economics, & Social Studies

Articles

Vol. 2 No. 1 (2023): Emirati Journal of Business, Economics, & Social Studies

Examining The Impact Of Interest Rate, Inflation And Balance Of Trade On Saudi Arabia’s Financial Markets Performance

  • Mohammad Knio
  • Said El Hajjar
  • Jaishu M Antony
Submitted
October 16, 2023
Published
2023-10-16

Abstract

A confirmatory framework, utilizing the positivist standpoint, provides clarifications of the issue at hand. Investigating the impact of the macroeconomic factors on the profits of Saudi Arabia’s stock exchange was developed. Following thorough research, it became clear that a correlative study was required. Secondary data, gathered from to 2006 to 2021, was interpreted through regression analysis for the purpose of the study. As such, a numerical examination was conducted in order to observe the correlation of the macroeconomic variables and changes in Saudi Arabia’s stock market. The findings results indicate that the balance of trade has a consequence on Saudi Arabia’s stock exchange performance. The aim of this study is to improve the level of understanding of the stock market behavior for entrepreneur, stock market decision maker, whereas deterrent measures in contrast to the risk comprised in stock market performance can be taken by the establishments.

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