Saudi giving plenty room for private sector development growth
It’s not just Saudi talk.
By 2030, SMEs is estimated to account for 35% of GDP from existing contribution of 20% and private sector’s contribution from 40% to 65% of GDP, according to Saudi vision 2030.
The Saudi Ministry of Finance (MOF) recently signed financing agreements for 17 projects in health, education and hospitality sectors with loans amounting to $201.5 million, Saudi daily Asharqalawsat reported.
The total MOF investments amounted to $410.6 million aimed in part to enhance basic services for citizens, and encourage private sector investment in service projects.
Deputy MOF for Revenues Tareq Abdullah al-Shuhaib explained that the agreements stipulate the establishment of 8 health projects, including hospitals and medical complexes in Riyadh, Dammam, Abu Arish, Jeddah, Abha, and Buraydah, as well as 8 other educational projects consisting of schools, universities and colleges in Riyadh, Madinah, Jeddah, and Dammam.
They also include 1 hospitality project for a three-star hotel in Jizan.
Awamiya private development- Update
The Saudi Gazette reported that about 30% of work on the Awamiya development project has been completed, according to Mohammed Al-Sufyan, spokesman for the Eastern Province Municipality.
Spreading over an area of 180,000 m2, the project is expected to cost $64.5 million. Eastern Province Emir Prince Saud Bin Naif laid the foundation stone for the project in February 2018.
A new cultural center, covering an area of 5,323 m2 in Awamiya would have a special venue to organize national events and festivals. Other projects include an open market, a recreational center, and a heritage building.
About 94,000 m2 of the project is allocated for gardens and entertainment centers.
Tadawul-listed Al Akaria Saudi Real Estate Company (SRECO) has announced plans for a 7 million m2 mixed-use development in the Saudi capital of Riyadh.
The development – Al Widyan – sits in the northern growth corridor of Riyadh, approximately 15 minutes away from the international airport and 20 minutes away from downtown.
The first phase of the project, which started in 2017, will cost $2.6 billion, the company said.
Additionally, SRECO said that Al Widyan will seek a 40% reduction in energy use and a 35% reduction in waste use. It is expected to be fully launched in Q4 2018 and developed over a 7-year timeframe.
The Saudi Gazette reported that the Emir of Makkah and Adviser to Custodian of the Two Holy Mosques Prince Khaled Al-Faisal has instructed the constitution of a task force to execute tourism, entertainment, and economic projects in Al-Hada and Al-Shafa mountains in Taif within the government’s efforts to develop the southern summer resort.
The project would be implemented in partnership with a number of developers and investors who have enough experience in developing summer resorts, entertainment cities, and tourist activities.
Saudi aims to lift total tourism spending to $46.6 billion in 2020 from $27.9 billion in 2015.
Al-Ahsa, one of the world’s largest natural agricultural oases, became the country’s fifth UNESCO World Heritage site.
In addition to fresh- and hot-water springs and vast tracks of date palms, the 10,000-hectare region holds archaeological sites dating to the Neolithic period.
Another UNESCO site, Madain Saleh, is a 2,000-year-old city carved into the rocks of the northern desert by the Nabateans, the pre-Islamic Arab civilization that also built Petra in neighboring Jordan. It is now the center of a multi-billion dollar tourism project the authorities are developing with French support.