KSA benefits from recession

King Abdullah Economic City is ahead of schedule, says Sagia.

A 30-40% fall in construction costs in Saudi Arabia is speeding up the development of the kingdom’s economic cities, officials said yesterday.

The Saudi Arabian General Investment Authority (Sagia) said the global recession had led to a “significant opportunity for Saudi Arabia's economic cities to develop at an increasing rate.”

"The global economic slowdown has presented a great deal of opportunities including depressed prices of building materials and surplus capacities in construction companies, equipment and human capital,” said Sagia governor Amr Al Dabbagh.

“All these challenges were there six months ago but now we are talking about a cost advantage for construction between 30 and 40%. Now the challenge is how much we can do in 24 hours a day, seven days a week."

Story continues below

Advertisement

FEATURED COMMENT Please click here to comment on this article

Saudi Arabia is diversifying its economy away from oil by developing its real estate and financial markets.

Through its economic cities developments Sagia aims to make the kingdom one of the world’s ten competitive investment destinations by 2010.

The organisation said its King Abdullah Economic City, the largest of Saudi Arabia's economic cities and its “crown jewel”, is ahead of schedule and due to complete its first phase of construction by 2012.

Roads construction

Saudi Arabia's Ministry of Transport signed 16 contracts worth a total of US $245.5 million (SAR919.26 million) for the construction of roads, reported Dow Jones newswire.