Saudi Arabia is currently pursuing a programme of investment which will include a large amount of investment in areas such as health care, roads and general infrastructure between 2010 and 2013. Saudi Arabia has awarded development contracts worth in the region of $5.6 billion during the first three months of this year however this was almost 50% lower than for the first quarter of 2009.
A chief economist with the Banque Saudi Fransi, Riyadh said that there are definitely clear signs of a recovery being seen and the fact that spending is lower is largely due to the fact that spending this year will not be evenly spread out over the twelve month period but will happen at different intervals so it will be necessary to record spending levels over the entire twelve month period of 2010 to get a truly accurate picture. He also reiterated that government spending is most definitely on track at the moment.
In the last three months of 2009 development contracts were up $3.5 billion when compared to spending recorded for the same period the year before. The largest amount of spending was on construction projects such as roads, schools and hospitals. In December last year the government announced that it will be raising investment spending by just over $69 billion this year. It was estimated by the IMF that economy of Saudi Arabia will grow by 3.7 percent this year in comparison to 0.15 percent in 2009Paul Holdsworth, Staff Writer, Gulf Jobs Market News