Impact of infrastructure challenges on business growth in Saudi Arabia
Bibliographic Data
| ID | 22204087 |
|---|---|
| Authors | Mohammad Rumzi Tausif (0000-0001-7485-9385, Prince Sattam Bin Abdulaziz University), Mohammad Imdadul Haque (0000-0001-6323-032X, Aligarh Muslim University, corresponding author), Riyazuddin Khan (0000-0001-5829-3721, Ambedkar University Delhi), Md Riyazuddin Khan |
| Year | 2026 |
| Volume | 13 |
| Pages | 102807 |
| Publication date | 2026-06-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Social Sciences & Humanities Open (JOURNAL) |
| Journal identifiers | ISSN: 2590-2911 • E-ISSN: 2590-2911 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.ssaho.2026.102807 |
| OpenAlex | W7160262424 |
| Language | EN |
| References cited | 10 |
Using the 2022 World Bank Enterprise Survey for Saudi Arabia, we investigate the relationship between infrastructure access, electricity reliability, and firm performance. We construct a firm-level Infrastructure Index via principal component analysis of digital adoption indicators (website ownership, shares of phone/email and online sales, and use of digital procurement/planning systems) and measure resilience by standardized backup generator ownership. OLS estimates with survey weights and industry–region clustered standard errors show that both infrastructure and resilience are positively associated with sales, exports, and labor productivity. Interaction results indicate that power outages significantly weaken the payoff to infrastructure, with the sharpest attenuation for exports. Generators provide partial insurance but do not substitute for a reliable grid. Given the cross-sectional design, coefficients are interpreted as conditional associations. Policy implications for Vision 2030 are direct; digital investments yield the largest returns when paired with dependable electricity. Priority measures include credit lines for SMEs to finance backup and efficiency upgrades, enforceable service-level agreements for power and broadband in industrial zones, and reliability KPIs along export corridors to safeguard competitiveness
Business development · Belt and Road Initiative · Fiscal Policy and Economic Growth · Socioeconomic Development in MENA
How Do Electricity Shortages Affect Industry? Evidence from India
The effect of the Internet on international trade
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Electricity Cost and Firm Performance
Understanding Interaction Models
Investment Climate and Firm Performance in Developing Economies
| Citation velocity | historical |
|---|---|
| Highly cited | No |