Spending on social infrastructure in Saudi Arabia, including construction of educational and healthcare facilities, is set to surpass $155 billion over the next decade, said an expert, citing official data.

According to the Saudi government’s 2011 budget, 3,200 new schools are currently under construction with 600 more planned for 2011.

'Saudi Arabia’s low public debt levels, which are among the lowest in the world, in demonstrating its ability to meet its social infrastructure project spending demands,' remarked Ozair Shaiq, conference director of Saudi Construction Summit, which will be held in Jeddah, Saudi Arabia from June 19 to 22.

The Jeddah summit will provide organisations in civil engineering, primary construction, secondary finishing and related sectors with new insight into design, construction and business model considerations to develop a cohesive and efficient social infrastructure.

“Saudi has public debt at 17 per cent GDP, external debt at 13 per cent and 80 per cent of Saudi’s $622 billion GDP comes from hydrocarbon receipts. Given that oil prices at the moment are well over $100 per barrel and Saudi has promised to boost production to replace any shortfalls in Libya exports, funding is undoubtedly available,” he added.

The Kingdom, said Shaiq, is ranked within the global top 20 in having one of the world’s lowest levels of public debt as a percentage of GDP, 'and is also within the top 20 per cent of nations in terms of low external debt levels, according to figures from the CIA World Factbook.'

According to him, the summit aims to recognise the unprecedented opportunity this programme of spending represents for many regional and international construction businesses.

“In light of the Saudi government’s most recent announcement of additional spending, on top of funding already committed through the 2011 budget, the significance of the Saudi Construction Forum 2011 cannot be overstated,” said Shaiq.

“With the huge volume of construction projects currently underway or planned for the decades ahead, the construction market holds huge potential for construction companies. Gaining access to this market is one of the key objectives of the Saudi Construction Summit,” said Shaiq.

In financing its significant programme of social infrastructure construction, the Saudi government’s commitment includes $37 billion for the construction of schools and universities and $35 billion for the development of hospitals and other healthcare facilities.

Population growth is the primary driver, with Saudi becoming the most populous nation in the Gulf, having quadrupled over 40 years to reach 25.7 million people, 5.5 million of which are expatriate workers, according to figures from Credit Suisse Group AG.
 
'Over the next decade, Saudi is expected to face a sharp increase in healthcare and education demand,' said Shaiq.

'A growing population needs to be educated to compete in the domestic and regional market and an aging population combined with a high birth rate will inevitably put added pressure on healthcare services,' he added.-TradeArabia News Service