Investment Mounts in Saudi Arabia’s Infrastructure Industry

Investment Mounts in Saudi Arabia’s Infrastructure Industry
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Published October 4th, 2010 - 10:42 GMT

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The Kingdom of Saudi Arabia (KSA) is in the spotlight for mega infrastructure projects. Research reports state that the Kingdom is investing heavily to the tune of SAR 1,496 billion (US$ 400 billion) to upgrade its infrastructure over a five-year period until 2013[1]. The region is placing top most priority on infrastructure development across industries such as power, transportation, education, retail, real estate and oil and gas among others.

There was a slew of project announcements in 2009 and many of these projects are now under way. Some of the mega projects are the Riyadh Power Plant; expansion of the Rabigh Power Plant; the Ras Al Zour water and power plant; the Haramain High Speed Railway linking Jeddah with Mecca and Medina and the expansion of King Khaled International Airport and Prince Mohammed Bin Abdul Aziz International Airport in Madinah.

Citing a few examples, the construction industry alone has been forecasted to grow by 5.89 percent year-on-year (y-o-y) in 2010 to reach a nominal value of SAR 82.64 billion (US$ 22.07 billion). The Red Sea Gateway Terminal at Jeddah Islamic Port will witness an investment of SAR 1,908 million (US$ 510 million) and the much-awaited privately-owned airport, which will replace the Prince Mohammad Bin Abdul Aziz Airport in Madinah, is estimated to cost SAR seven to eight billion (US$1.87-2.13 billion).

Responding to the growth in the Kingdom, the first Saudi Arabian Infrastructure Congress 2010 will provide the requisite platform for delegates across the region to interact with key government developers and clinch deals. The Congress is scheduled to be held from October 23rd – 25th, 2010, at the Four Seasons Hotel in Riyadh, Saudi Arabia.

The Congress will witness an attendance of around 40 percent of delegates from Saudi and the Gulf Cooperation Council (GCC) region. Senior government organizations such as the Ministry of Water and Electricity, Saudi Electricity Company and Saudi Railway Company among others will provide critical industry insights at the event which will also feature essential updates on high profile projects.

[1] BMI Saudi Arabia Q2 Report 

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