Dynamic Multisector Equilibrium

The objective of this project is to develop a dynamic multi-sector general equilibrium model of the KSA economy to measure the economic impacts of the Saudi Industrial Development Fund (SIDF) projects and enhance their contribution to the economy.

The model (SIDFMOD) enhances the analytical and quantitative capabilities of the SIDF for impact assessment at the macroeconomic and sectoral levels. It allows the SIDF to measure the economic impacts of SIDF projects on the Saudi economy at the macro and sectoral levels. The impacts indicators include macroeconomic variables such as Impact on value-added and GDP, the balance of payments, local content, job creation, Saudization, government budget, final demand and investment, exports, and imports, etc. The model also incorporates all the relevant policy instruments that are or could be used by the government or the SIDF such as taxes, subsidies, public investment, interest rates, income tax, VAT, tariffs, fees, energy and services pricing, foreign trade policies, labor market regulations, etc.

The SIDFMOD is developed as a modular and evolutive tool installed on the cutting-edge powerful analytics platform software developed by ECOMOD which can integrate into a unified framework with additional models (such as regional, interregional, financial models), modules (labor markets, export or import markets, etc.), artificial intelligence, machine learning tools, databases depending on the needs of the SIDF.