New researches in Islamic humanities studies

New researches in Islamic humanities studies

A Comparative Study of the Legal System and Budgetary Policies of Iran and Norway in the Utilization of Oil Revenues

Document Type : Original Article

Author
Amir Nezan Barati
Assistant Professor of Law, Imam Khomeini University of Martime Sciences, Mazandaran
10.22034/api.2026.2078179.1561
Abstract
Objective: The main objective of this research is to conduct a comparative analysis of the legal system and budgetary policies of Iran and Norway in the exploitation of oil resources. This study seeks to demonstrate how different legal frameworks in managing oil revenues can lead to different outcomes in terms of fiscal transparency, inflation control, and the achievement of intergenerational sustainable development. Furthermore, this research aims to identify the strengths and weaknesses of Iran's oil-based budgeting system in comparison to Norway and to propose solutions for reducing the country's budgetary dependence on oil.
Research Method: The present research is descriptive-analytical in nature and applied in terms of purpose. The data collection method is based on documentary, library, and reliable statistical sources, including reports from the International Monetary Fund (IMF), the World Bank, Iran's development plan laws, annual budget laws, and official reports of Norway's sovereign wealth fund. The time frame of the study covers the years 2008 to 2025. The collected data have been analyzed using content analysis and systematic comparison (qualitative comparative analysis), and indicators such as budget transparency, the degree of dependence on oil revenues, the efficiency of development funds, and economic fluctuations in the two countries have been compared..
Findings: The findings of the research indicate that Norway, by adopting prudent fiscal policies and institutionalizing transparency, has been able to transform oil revenues into productive and sustainable capital. The establishment of Norway's sovereign wealth fund in the 1990s, the separation of oil revenues from the government's current budget, and the enactment of anti-inflationary laws have prevented the Norwegian economy from suffering from Dutch disease, while enabling it to enjoy some of the world's highest indicators of welfare and fiscal stability. In contrast, the findings related to Iran reveal a severe dependence of the public budget on oil revenues (averaging over 30% of budget resources during the study period) as well as significant seasonal and annual fluctuations in revenue realization..
Conclusion: The results of the research show that the mere existence of oil revenues cannot guarantee sustainable development; rather, the type of legal system and the quality of budgetary policies are the main determining factors. To reduce the vulnerability of Iran's economy to oil shocks and to achieve intergenerational justice, structural reform of oil laws and budgeting is inevitable

Graphical Abstract

A Comparative Study of the Legal System and Budgetary Policies of Iran and Norway in the Utilization of Oil Revenues
Keywords
Oil revenue
budgeting
sovereign wealth fund
Iran
Norway
economic law
Subjects
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New researches in Islamic humanities studies
Volume 5, Issue 9
Spring 2026
Pages 1-17