The Impact of Financial Literacy on Household Wealth in the Kingdom of Saudi Arabia

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Saber, Abdullatef (2020) The Impact of Financial Literacy on Household Wealth in the Kingdom of Saudi Arabia. Other Degree thesis, Victoria University.


This thesis aims to measure the level of financial literacy among Saudi workers. It also focuses on the impact of financial literacy and demographic factors including age, gender, level of education, work experience, marital status, number of children, sector of work and level of income, on household wealth of Saudi workers. These objectives were measured in an empirical study using a survey method. The data collected underwent several steps of analysis including univariate, bivariate and multivariate (multiple regression) analyses. Since Saudi Arabia is a key country in the Middle East and is part of the Middle East and North Africa (MENA) regional economic community this study focuses on one of the most important studies in the region. The study is especially important for Saudi Arabia itself for several reasons. First, financial literacy and household wealth are an important area of investigation because financial crises have affected many individuals in the country. For example, in mid- 2015 international oil prices dropped and the Saudi economy was greatly affected and in response the Saudi Arabian government reduced its budget, including salaries. Moreover, the government introduced a new taxation system in 2018 in addition to a significant increase in the basic costs of daily life requirements such as electricity, water and petroleum, which increased by more than 200%. Thus, people in Saudi Arabia were forced to change their spending patterns to accommodate their new income levels and higher daily expenses. Second, in 2013, the Saudi government revealed its intention to enhance the economic situation of the country through Saudi Vision 2030, which aims to reduce the country’s dependence on oil as its main source of income. This goal can be achieved only through effective collaboration between the government and financially literate people who have the skills required to create wealth for both themselves and their country through wise financial decision-making. This study provides practical recommendations to policymakers and key individuals in Saudi Arabia and the MENA by shedding light on the most affected segment; the financially illiterate. The study confirms that demographic issues have a significant relationship with household wealth. It also transpired that financial literacy is instrumental in many of the practical aspects of people’s day-to-day financial behaviour.

Additional Information

Doctor of Business Administration

Item type Thesis (Other Degree thesis)
Subjects Historical > FOR Classification > 1502 Banking, Finance and Investment
Historical > FOR Classification > 1603 Demography
Current > Division/Research > Institute for Sustainable Industries and Liveable Cities
Keywords financial literacy; Saudi Arabia; demographic variables; age; gender; education; work experience; marital status; income level; household wealth
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