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Investment in Saudi Arabia’s social infrastructure, including the construction of educational and healthcare facilities, is set to surpass $155 billion (581.2 billion Saudi riyals) over the next 10 years, a newspaper report quoting government figures has revealed.
The Director of Saudi Construction Forum 2011 said that the figures have been arrived at in light of the Saudi Government’s recent announcement of additional spending on top of the funding already committed in the 2011 Budget.
Mr Ozair Shaiq, Director of the forum, which will be held in Jeddah from June 19-22, said that the Kingdom’s low public debt levels, among the lowest in the world and ranked within the global top 20, was a plus in the ability to complete social infrastructure projects.
“Saudi Arabia has a public debt of 17 per cent of GDP and external debt of 13 per cent of GDP, with 80 per cent of Saudi Arabia’s $622 billion (2.3 trillion riyals) GDP coming from hydrocarbon receipts,” he was quoted by Arab News as saying.
“Given that oil prices at the moment are well over $100 a barrel and Saudi Arabia has promised to increase production to replace any shortfalls in Libyan oil exports, funding is undoubtedly available,” he added.
Of the 581.2 billion Saudi riyals (SR), SR 138.7 billion ($37 billion) has been allocated for the construction of schools and hospitals and other healthcare facilities.
In Saudi Arabia, around 7.7 million people are currently under 15. This has necessitated substantial investment in schools and universities, with spending in this area tripling to almost $140 billion (525 billion riyals) over the past 10 years.
“With the huge volume of construction projects currently underway or planned for the decades ahead, the construction market in Saudi Arabia holds huge potential for construction companies,” Mr Shaiq said.
The primary driver encouraging rapid infrastructure growth, especially in the social sector, is population growth.
Saudi Arabia is the most populous nation in the Gulf, its population having quadrupled over the last four decades to reach 25.7 million, 8 million of which are expatriate workers, according to statistics from Credit Suisse AG.
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