Applicability of the Inclusive Wealth Index as a measure of sustainable development for the Kingdom of Saudi Arabia

Abstract

Following UNEP's global assessment of nations' sustainable development in 2012 and 2014, the Kingdom of Saudi Arabia's Inclusive Wealth Index (IWI) growth per capita has been negative. This study evaluates the extent to which the Inclusive Wealth Index is applicable to the nation. The study evaluates the method and makes new contributions for Saudi Arabia by adding components that had been omitted in the initial assessment, such as fisheries and minerals. The stocks for the fossil fuels had been changed to represent technically recoverable reserves, addressing the current paradox of increasing reserves. The global database sources are replaced with the local Saudi for 1999 until 2013. As a result, the new IWI is found to be closer to the 2014 report in absolute numbers and in comparable in the relative figures to the 2012 report, representing a still negative, unsustainable growth. The second part of the study looks at adapting the Inclusive Wealth Index to a subnational level, revealing large regional discrepancies between the Eastern Province and the Central regions, such as Mecca, Riyadh and Medina.