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JEDDAH: Investment in the Kingdom’s social infrastructure including the construction of educational and health care facilities is set to surpass SR581.2 billion ($155 billion) over the next 10 years, according to government figures.
It follows a number of sweeping reforms from Custodian of the Two Holy Mosques King Abdullah last week.
“In light of the Saudi government’s most recent announcement of additional spending, on top of the funding already committed through the 2011 budget, the significance of the Saudi Construction Forum 2011 cannot be overstated,” said Ozair Shaiq, director of the forum that will be held in Jeddah from June 19-22.
Shaiq said 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 public debt of 17 percent of GDP and external debt of 13 percent of GDP, with 80 percent of Saudi Arabia’s SR2.3 trillion ($622 billion) GDP coming from hydrocarbon receipts,” he added.
“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.”
Of the SR581.2 billion, SR138.7 billion ($37 billion) has been allocated for the construction of schools and hospitals and other healthcare facilities.
“With the huge volume of construction projects currently under way or planned for the decades ahead, the construction market in Saudi Arabia holds huge potential for construction companies,” Shaiq added.
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.
“Over the next decade, Saudi Arabia is expected to face a sharp increase in demand in healthcare and education. A growing population needs to be educated to compete in domestic and regional markets and an aging population combined with a high birth rate will inevitably put added pressure on healthcare services,” added Shaiq.
In the Kingdom, 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 SR525 billion ($140 billion) over the past 10 years.
According to the Saudi government’s 2011 budget, 3,200 new schools are currently under construction, with 600 more planned.
Current funding for healthcare facilities has been allocated in anticipation of future healthcare requirements.
To rise to the challenge, the Ministry of Health has allocated $18 billion for healthcare services and social infrastructure development, including the construction and equipping of primary healthcare facilities, the building of 120 new hospitals and upgrades of four existing hospitals.
It follows a number of sweeping reforms from Custodian of the Two Holy Mosques King Abdullah last week.
“In light of the Saudi government’s most recent announcement of additional spending, on top of the funding already committed through the 2011 budget, the significance of the Saudi Construction Forum 2011 cannot be overstated,” said Ozair Shaiq, director of the forum that will be held in Jeddah from June 19-22.
Shaiq said 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 public debt of 17 percent of GDP and external debt of 13 percent of GDP, with 80 percent of Saudi Arabia’s SR2.3 trillion ($622 billion) GDP coming from hydrocarbon receipts,” he added.
“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.”
Of the SR581.2 billion, SR138.7 billion ($37 billion) has been allocated for the construction of schools and hospitals and other healthcare facilities.
“With the huge volume of construction projects currently under way or planned for the decades ahead, the construction market in Saudi Arabia holds huge potential for construction companies,” Shaiq added.
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.
“Over the next decade, Saudi Arabia is expected to face a sharp increase in demand in healthcare and education. A growing population needs to be educated to compete in domestic and regional markets and an aging population combined with a high birth rate will inevitably put added pressure on healthcare services,” added Shaiq.
In the Kingdom, 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 SR525 billion ($140 billion) over the past 10 years.
According to the Saudi government’s 2011 budget, 3,200 new schools are currently under construction, with 600 more planned.
Current funding for healthcare facilities has been allocated in anticipation of future healthcare requirements.
To rise to the challenge, the Ministry of Health has allocated $18 billion for healthcare services and social infrastructure development, including the construction and equipping of primary healthcare facilities, the building of 120 new hospitals and upgrades of four existing hospitals.
