The Reality of Implementing Governance Principles in the Public Sector and their Role in Enhancing Financial Sustainability in the Kingdom of Saudi Arabia 10.35781/1637-000-115-005

Abstract

This study examines the application of governance principles in the public sector and their role in enhancing financial sustainability in the Kingdom of Saudi Arabia. The objectives of this study can be summarized as highlighting the identification of key governance indicators in Saudi Arabia, reviewing the impact of applying governance indicators on the efficiency of financial institutions in the Kingdom, exploring the relationship between governance and financial sustainability at the economic level, and providing practical recommendations to enhance the application of governance indicators to achieve financial sustainability. The key findings of the study suggest that achieving advanced levels of governance enhances sustainable development and mitigates the impact of political and economic crises. Furthermore, transparency and effective governance are fundamental pillars to ensure economic stability and sustainable growth. Financial sustainability is considered a strategic goal for the Kingdom, especially given the economic challenges faced over the past decade due to fluctuations in oil prices. This highlighted the need to diversify income sources to increase non-oil revenues and enhance government spending efficiency. Saudi Arabia's performance has gradually improved in the Transparency Indicator according to the International Transparency Corruption Index, and in most governance indicators, thanks to government reforms aimed at combating corruption and intensifying efforts to promote transparency and integrity in government institutions and economic projects. The study recommends enhancing transparency and institutional accountability through more effective application of governance indicators. Additionally, it suggests the development and unification of governance indicators and emphasizes the need for government entities to create a comprehensive set of governance indicators aligned with the needs of the Saudi economy. The researchers, by the grace of God, followed the inductive approach and the descriptive-analytical method, which is based on describing and analyzing the data and statistics available in the study.