Saudi Arabia to spend $400bn on infrastructure

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Saudi Arabia to spend $400bn on infrastructure

04 Feb 2009

Saudi Arabia is to spend $400 billion on a series of infrastructure projects over the course of the next five years.

According to the Saudi Arabian General Investment Authority, the emerging market is looking to take advantage of the lower construction costs which have occurred as a result of the global financial crisis.

Governor of the authority Amr al Dabbagh said: "We are talking now about much less construction cost because of the drop in the prices of steel, cement and other building materials."

Compared with six months ago costs for materials and work are thought to be up to 40 per cent lower, he added.

Saudi Arabia is in a position to take advantage of the recession due to its relatively low levels of sovereign debt as well high currency reserves, stated the organisation.

Meanwhile, Ame Info reported that banks in Saudi Arabia have been able to bypass the worst effects of the global financial crisis by posting 26.3 billion SAR ($6.9 billion) in profit for 2008. ADNFCR-1127-ID-19008672-ADNFCR