SUMMARY
To accomplish the aims of sustainable development, a country's financial sector must develop. Oil earnings impact financial growth in many oil-dependent nations, including Iran, because domestic policy and economic planning are reliant on oil income. In this context, the influence of oil and non-oil indices on financial development in Iran from 1979 to 2019 was examined using the ARDL approach in this study. Oil rent indexes and non-oil indices such as value addition of industry, agriculture, and services were employed. This study revealed that the oil rent index had a positive association with financial development in both the short and long term. In contrast, the value-added of industry and agriculture had a negative and substantial relationship with financial development. The impact of service sector value added on financial development, on the other hand, was not validated in this study. According to the findings, energy (oil) price volatility would substantially influence Iran's financial growth. As a result, fundamental structural changes are required to lessen oil dependency by boosting small and medium-sized businesses and attracting international investment.