Saudi Arabia shares plans to invest $3 trillion in "mega-projects", most of which are construction projects
According to the Minister, this includes real estate and industrial port infrastructure facilities
Saudi Arabia plans to invest more than $3 trillion in future projects.
This was stated by the Minister of Investment of the Kingdom Khalid Al-Falih to Dan Murphy in a commentary to CNBC at the World Economic Forum in Davos.
"We need to make sure that our projects in our investment sectors are robust enough to provide returns that will overcome this increased cost of capital for investment," the minister said about a number of mega-projects planned by Saudi Arabia.
"We are firmly targeting $3 trillion in investment, gross capital formation through the national investment strategy based on Vision 2030. Around $1.8 trillion will be allocated to various types of contracts. Many of them will be construction contracts, real estate, and industrial port infrastructure," he said.
"Inflation will also affect projects, so we are doing our best to attract global contractors and assist them in building local supply chains for construction materials and creating stocks so that we do not have a problem with this," he emphasized.
The Vision 2030 strategy, launched by Saudi Crown Prince Mohammed bin Salman in 2016, aims to create jobs in the private sector and diversify the country's economy away from oil as Saudi Arabia's population, more than 60% of which is under 30, grows and the country's vast oil reserves decline.
Background. At the Davos Forum, Ericsson CEO said that 5G networks are still in the early stages of development. According to him, commercial development of 6G is unlikely to start before 2030.
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