The Literature review provide brief overview regarding the previous contribution of researchers. The literature review provides huge amount of data and provide information about the research gap. For conducting this research extensive literature review has been performed to provide data in detail. After collecting the data from the literature review it would be analyzed for providing answers to the research questions. Through literature it has been identified that many researchers have conducted research on the impact of oil prices on exchange rate and how it effects the overall economy.  Through literature the policies of GCC countries regarding foreign exchange rate risk are analyzed. The gathered data is valid and reliable because it has provide information for the research questions efficiently. The data has covered various aspects which this study is evaluating.

        Karim Eslamloueyan & Amir Kia (2015) have conducted research to evaluate the real exchange rate in the countries of Middle East and Africa. The researchers stated that the real exchange rate in oil producing countries is effected or determine by various factors. For conducting the research the data is gathered from the period of 1985 to 2009. In the study the model is created to estimate the real exchange rate. The finding of the study shows that the oil prices, government expenditure, money supply and US external debt influence the real exchange rate in the long run. In the short run the real exchange rate is influenced by US interest rates, money supply and government expenditures. This research study shows that various factors have major influence over the exchange rate of oil producing countries. It means that when oil prices changes the exchange rate of Saudi Arabia and other oil producing countries will have significant impact. The research study has huge scope because it has discussed various factors that influence the exchange rate of not only Middle eastern but also the North African countries. The future researchers can use this study to further investigate how the exchange rate is being influenced by various factors (Eslamloueyan & Kia, 2015)

        In the research study conducted by Lakshmi kalyanaraman & Basmah Al Tuwajri (2014) the macroeconomic factors are discussed in detail with the perspective of stock prices. The research has focused on the region of Saudi Arabia. The macro economic factors that are discussed in the study include money supply, exchange rate, oil prices and changes in global stock prices. In the study time series analysis is implemented to evaluate the stock price performance. The data is gathered for the period of 1994 to 2013. The findings of the study has shown that the all the macroeconomic factor that have been discussed in the study effect the stock prices (Kalyanaraman & Tuwajri, 2014)

        The findings of the study indicates that the factors like oil prices, money supply and industrial output all effect the prices however the index such as S&P 500 does not show any impact over the stock prices. This research study has vast scope and provide information about the economic factors in detail that have impact not stock prices. This research is not only important for the economists but also for the corporation which want to increase their stock prices. The future researchers can also use this study to investigate the impact of macroeconomic factors not just on stock prices but on other things such as exchange rate and interest rate.

        In the research study the Tantatape Brahmasrene, Jui Chi Huang and Yaya Sissoko (2014) have provided deep insights regarding the oil prices and exchange rates. In the study the researchers have gathered the data from 1996 to 2009 to investigate the relation between the exchange rates and oil prices.  In the study the data regarding the oil prices is gathered from the five countries from which United States import oil. The study investigate the impact of oil prices on exchange rate in short run and in the long run which increases the credibility of the research. The data is analyzed to check its reliability and validity (Brahmasrene, Huang, & Sissoko, 2014)

        The findings of the research indicate that the oil price changes have significant impact on the exchange rate changes. When the prices of oil increase the exchange rate also appreciates as a result. However when the oil prices decreases the exchange rate also decline. In other stability in the oil prices cause less fluctuation in the exchange rate through which the currencies become more stable. The research provide brief information regarding the oil prices changes and their impact on the exchange rate. Therefore this research study has huge significance for traders, economists and industrialists. It means that the study can be used by future researchers for further research.

         A study conducted by Mohamed El Hedi Arouri and Christophe Rault (2010) have discussed the oil prices and the stock markets of the GCC (Gulf Corporation Council Countries). In the study the researchers have discussed that the previous studies have not discussed the relationship between the oil prices and stock market in detail. The researchers have stated that the oil prices impact on stock prices in the perspective of oil producing countries is not research inn detail. The data is gathered from the period of 1996 to 2008 to investigate the impact in detail.  After gathering the data the data is analyzed for the formation of results (Arouri & Rault, 2010).

          The results of the findings show that the oil price changes do have impact on the stock price changes. The stock prices changes however does not show any impact on the oil prices. It means that the investors who are investing in the oil sector should look at the stock price changes to evaluate any change in prices. This research study has huge significance for the investors because through this they can make better or rational investment decision. Moreover the future researchers can use this study for further investigation of the phenomenon. In short it can be said that the oil prices changes have significant impact on oil producing countries.

            Lutz Kilian (2007) have discussed the effect of oil supply on the inflation and output of the G& countries. In the study the researchers have stated that the oil production have significant impact on the GDP growth and inflation of the countries. When the oil production decreases the GDP also decreases as a result. In other words it can be said that the oil production is related with the growth and other factors. Large amount of data is gathered for conducting the research and evaluating the impact of oil production on inflation and growth of the countries (Kilian, 2007)

        The findings of the research study shows that the oil production decline have significant impact on the GDP growth of the countries. Due to low oil production the speed of the growth reduces. The findings of the study further discuss that when the oil production decline it effects on the inflation rate as well. This study has huge significance for the economists and policy makers. Various industrialists can also use this study to enhance their knowledge and understanding regarding GDP growth. The future researchers can utilize this study to further investigate the impact of oil production on various factors. Therefore it can be said that this study has huge scope.

        In the study Shawkat Hammoudeh and Kyongwook Choi (2006) have discussed the stock market of the GCC countries and how the US oil prices effect the GCC market. For conducting this study huge amount of data is gathered regarding the GCC stock market. The GCC countries are rich in oil reserves and most of their export and economy relies on the oil related products. The changes in US market do have impact on the GCC stock markets. The data is analyze for checking its validity and then the results are formulated (Hammoudeh & Choi, 2006)

        The findings of the research shows that the changes in stock market in the US do have impact on the stock market of the GCC countries. When the stock market of US experience growth the market of GCC countries also experience growth as a result. This research has huge significance for industrialists, organizations and even the academic institutions. The research has provided brief information and tries to fill the research gap. However this research have some limitation and in future through further research this research gap can be removed. Overall through this research significant amount of data can be gathered.

        In the research study which is conducted by Jia Liao, Yu Shi and Xiangyuun Xu (2018)  have discussed the oil prices and exchange rate relationship in detail. Huge amount of data is gathered for the research study and the researchers try to evaluate the correlation. The researchers have discussed that over the years the correlation between oil prices and exchange rate have become negative or weekend over time. In the study those factors are discussed which play mediating role in the relationship of oil prices and exchange rate. The data is gathered in detail and then verified to check its authentication (Liao, Shi, & Xu, 2018)

        The findings of the study shows that the financial market factors play significant role as mediating factors between the oil prices and exchange rate changes. These financial market play the mediating role during the global financial crises. After that the study has found no mediating factor between the relationships. The study has provided brief information and filled the research gap. There are few studies who have focused on the mediating factor between oil prices and exchange rate. Therefore in future such research studies are required who provide information in detail. This study has huge scope and provide the information in abundance.

        If all the above literature review is summarized than it can be said that Due to low oil production the speed of the growth reduces. The findings of the studies further discuss that when the oil production decline it effects on the inflation rate as well. This study has huge significance for the economists and policy makers. Various industrialists can also use this study to enhance their knowledge and understanding regarding GDP growth. The results of the findings show that the oil price changes do have impact on the stock price changes. The stock prices changes however does not show any impact on the oil prices. It means that the investors who are investing in the oil sector should look at the stock price changes to evaluate any change in prices. These research studies has huge significance for the investors because through this they can make better or rational investment decision.

        The literature review has discussed that various factors have major influence over the exchange rate of oil producing countries. It means that when oil prices changes the exchange rate of Saudi Arabia and other oil producing countries will have significant impact. The research studies has huge scope because it has discussed various factors that influence the exchange rate of not only Middle eastern but also the North African countries. The future researchers can use these studies to further investigate how the exchange rate is being influenced by various factors.

References of Exchange Rate of Saudi Arabia & Its Impact on United States

Arouri, Mohamed El Hedi, and Christophe Rault. 2010. "Oil Prices and Stock Markets: What Drives what in the Gulf Corporation Council Countries?" 1-23.

Brahmasrene, Tantatape, Jui-Chi Huang, and Yaya Sissoko. 2014. "Crude oil prices and exchange rates: Causality, variance decomposition and impulse response." 44: 407–412.

Christoffersen, Peter. 2011. Elements of Financial Risk Management. Academic Press.

Eslamloueyan, Karim, and Amir Kia. 2015. "Determinants of the Real Exchange Rate in Oil-Producing Countries of the Middle East and North Africa: A Panel Data Investigation." 51: 842–855.

García, Francisco Javier Población. 2017. Financial Risk Management: Identification, Measurement and Management. Springer.

Hammoudeh, Shawkat, and Kyongwook Choi. 2006. "Behavior of GCC stock markets and impacts of US oil and financial markets." 20: 22–44.

Kalyanaraman, Lakshmi, and Basmah Al Tuwajri. 2014. "Macroeconomic Forces and Stock Prices: Some Empirical Evidence from Saudi Arabia." 5: 81-92.

Kilian, Lutz. 2007. "A Comparison of the Effects of Exogenous Oil Supply Shocks on Output and Inflation in the G7 Countries." 1-50.

Liao, Jia, Yu Shi, and Xiangyun Xu. 2018. "Why Is the Correlation between Crude Oil Prices and the US Dollar Exchange Rate Time-Varying?— Explanations Based on the Role of Key Mediators." 6: 1-13.