Accrual accounting diffusion in the Saudi Arabian central government: A comparative analysis of ministries and agencies

Alghadeer, Hessa 2026. Accrual accounting diffusion in the Saudi Arabian central government: A comparative analysis of ministries and agencies. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

International experiences with accrual accounting reform yielded varying results due to different contextual factors. This thesis examines why and how accrual accounting reform was implemented in the Saudi central government using diffusion of innovation theory and institutional theory. The analysis draws on semi-structured interviews with senior officials in ministries and agencies, complemented by document analysis. The findings revealed that while accrual accounting was promoted as a tool to achieve national development plans, these plans were externally imposed through Vision 2030 and the OPEC+ agreement to reduce oil production. These forces converted external pressure into a national imperative for a rentier country to diversify income sources. The reform was diffused through a highly centralised, top-down mandate, yet organisations retained discretion in the pace and depth of adoption. The prevailing view was that accrual accounting is less relevant to the nature of government operations, since performance is measured by budgetary spending. Agencies completed the transition more rapidly and engaged fully with accrual data for internal reporting and performance monitoring. By contrast, ministries' financial statements remain incomplete, resulting in limited internal use of accrual data. Participants attributed this to dual reporting requirements, data accuracy concerns due to the absence of external auditing, and weak IT systems. Nonetheless, ministries employed accrual information to support the nation's strategic agenda. This selective use demonstrates that the accrual mandate was not primarily intended to modernise the public financial management but was accepted as part of a broader economic bargain to support revenue-generating reforms. The accrual system provides detailed information on government assets, liabilities, and full programme costs, which are essential for privatisation, PPPs and investments. This strategic framing shaped both the discretion granted to organisations and the selective use observed in ministries. Consequently, the Saudi case demonstrates that accrual reform functioned less as a managerial reform and more as an enabling infrastructure for the country’s wider economic objectives.

Item Type:	Thesis (PhD)
Date Type:	Completion
Status:	Unpublished
Schools:	Schools > Business (Including Economics)
Date of First Compliant Deposit:	31 July 2026
Last Modified:	31 Jul 2026 10:41
URI:	https://orca.cardiff.ac.uk/id/eprint/188590

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