Kingdom’s 2012 budget includes $9.4bn for transportation projects and roadworks
Analysts have said that plans by Saudi Arabia to spend in excess of $60bn on boosting the country’s logistics and transportation infrastructure have led to the issuance of this year’s highest number of Islamic bonds, or sukuk, cutting reliance on direct government funding and making it possible for private investors from last June to buy into the projects.
“The government realised that instead of putting money into projects itself, it was better to involve professional institutions, which can best ensure progress,” Murad Ansari, Riyadh-based analyst at investment bank EFG-Hermes Holding, was quoted as saying by Bloomberg.
Data from the Ministry of Finance reveals that the Kingdom’s 2012 budget includes $9.4bn for transportation projects including the expansion of King Khalid International Airport and building 4,200km of roads, in addition to the 28,100km already under construction.
Among the major projects included in the plans are an electrical subway train network linking major areas of Riyadh and the expansion of King Abdul Aziz international airport in Jeddah.