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Oil price movements and its macroeconomic effect may have deep effects on the oil exporting economy like Saudi Arabia in terms of personal consumption and welfare derived from the consumption. This present research targets to isolate the relationship between oil price and personal consumption per capita using a period 1970-2016 and applying cointegration technique. We find that all variables are the first different stationary and long and short run relationships are also corroborated. We find the positive relationship between oil price and personal consumption per capita in both long and short runs which suggest that oil price has direct effect on the consumption of the Kingdom in case of any movement. Moreover, we find that the oil price crises have insignificant effects on the personal consumption per capita hence the economy's consumption is supported by non-oil sector in the slump periods. Based on findings, we suggest the diversification policy to the Saudi economy for a smooth consumption pattern in the long run.

Trade Openness (TO) has a strong role in the development of an economy but its impact on the overall environmental profile of a country is debatable. This analysis is focused to test how trade openness affects CO2 emissions in Oman. Unit root tests are conducted and ARDL model is employed using data from 1972-2014. The results of the study suggested that both Gross Domestic Product (GDP) per capita and trade openness seem to have the positive impact on CO2 emissions. It means that a higher GDP per capita and trade openness destructs the environment in the country. The results leave space for Oman's government to consider the environment while devising its trade policies.