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FINANCIAL NEWS
Saudi to hand out $1.6b industrial contracts
12 Apr 2010
(MENAFN) Saudi Arabia said that it plans to build at least six more large industrial parks, in a bid to lower reliance on oil and build up new industries in the kingdom, Reuters reported.
The government will hand out contracts worth of nearly $1.6 billion to equip the industrial parks. This move comes in line with the government’s plans to diversify the economy away from oil, aiming to speed up job creation for a rapidly growing young population.
Head of the Saudi Industrial Property Authority, Tawfig Al-Rabiah, said that Saudi Arabia is rolling out investments worth $400 billion until 2013 to upgrade infrastructure, build roads, power plants, utilities or universities.
He added that the government is creating industrial cities which offer cheap leases and other subsidized government services, aiming to attract more investments.
Initially, the total area of parks would rise to 71 million sq meters and later would grow to more than 100 million sq meters, up from 42 million, said Al-Rabiah.
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