Wednesday, September 17, 2008

Investment pours into Saudi Arabia

Around US$800 billion will be invested in Saudi Arabia over the next ten years.

Saudi Arabia hopes to develop its infrastructure and economic growth.

Awaad Al-Awwad, the deputy governor of the Saudi Arabian General Investment Authority (SAGIA), told Arabian Business that about US$200 billion will be spent on the construction of buildings.

"A sizeable chunk of the money will be ploughed into the development of the four new economic cities, the most high-profile of which is King Abdullah Economic City (KAEC).

"Al-Awwad refuted concerns that the cities will not succeed in diversifying Saudi Arabia’s economy away from oil, saying, “They are all in very good shape.”

"He also confirmed rumours that the Government is planning to build two more cities, but refused to give further details. “They are still in the pipeline,” he said.

"The word “pipeline” is entirely apt for Saudi Arabia, the world’s biggest oil exporter. It has experienced soaring sales on the back of record oil prices, which hit an all-time high of $147 in July. The country earned about US$220 billion from crude sales in the first eight months of 2008, nearly $26 billion more than its total sales for the whole of 2007, according to estimates by the Energy Information Administration." - Investment pours into Saudi Arabia


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