Exploring the role of active learning in developing student competencies for a knowledge-based economy

This study examines how Activity-Based Learning (ABL) relates to competencies for a knowledge-based economy (KBE) and addresses limited evidence from non-Western higher education contexts. A cross-sectional survey of 481 undergraduates at Sultan Qaboos University measured seven validated Likert constructs: perceived relevance, ABL engagement, lifelong learning, critical thinking, skills development, knowledge creation, and contribution/preparedness for KBE. Analyses used descriptive statistics, reliability testing, and multiple regression; internal consistency was strong (Cronbach’s α = 0.81–0.90) with no missing data and no multicollinearity. ABL engagement predicted critical thinking (β = 0.753, p < 0.001), knowledge creation (β = 0.714, p < 0.001), and skills development (β = 0.498, p < 0.001). Preparedness for KBE was explained by skills development (β = 0.453), lifelong learning (β = 0.304), knowledge creation (β = 0.223), and critical thinking (β = 0.176), accounting for 50.7% of variance (R2 = 0.507). Students endorsed ABL’s practical relevance, but reflection and teamwork were implemented unevenly across disciplines; perceived relevance predicted engagement (R2 = 0.201). Universities should strengthen faculty capability to implement ABL with structured reflection, purposeful teamwork, and explicit skill transfer to professional contexts, aligning course outcomes with employability and national innovation priorities. The study provides evidence from an Arab higher-education context and offers an evaluative model to monitor how ABL supports KBE-aligned competencies. Higher ABL engagement is associated with stronger KBE competencies, especially skills development and lifelong learning.