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FINANCIAL NEWS
Saudi to continue heaving spending on infrastructure
27 Jan 2015
(MENAFN) Saudi Arabia is expected to continue its heavy spending on infrastructure, education, training, and job creation initiatives under the reign of King Salman and despite the continuous fall in global oil prices, Arab News reported.
The heavy spending would include mega development projects including the Haramain high-speed train, Riyadh Metro, and economic cities, as well as increasing the opportunities within the kingdom for greater competition in vital sectors.
However, there are some major challenges facing the Saudi economy in the future, which include ensuring that the development projects benefit all parts of the country as 65 percent of them are currently focused on the central, eastern and western regions, as well as ensuring that the country continues with its diversification efforts away from the oil sector.
These efforts would have to be maintained to keep the momentum of growth that the Saudi economy has shown in recent years, especially in its nonoil sector, which resulted in the rise of reserves and the reduction of public debt to gross domestic product, which is currently less than 3 percent of the GDP.
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