JEDDAH: Spending on social infrastructure in Saudi Arabia, including construction of educational and healthcare facilities, is set to surpass $155 billion over the next decade, according to government figures. The Kingdom 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 percent of nations in terms of low external debt levels, according to figures from the CIA World Factbook. In financing its significant program 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 Arabia 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. Saudi Arabia has a high proportion of young people, with around 7.7 million under the age of 15. This has necessitated substantial investment in schools and universities, with spending in this area having tripled to almost $140 billion over the past decade. According to the Saudi government's 2011 budget, 3,200 new schools are currently under construction with 600 more planned for 2011. This is also being driven by efforts to diversify its economy away from its dependence on hydrocarbon receipts, with new educational institutions needed to train the next generation of workers. Increasing local workforce participation and reducing the reliance on expatriate labor, which makes up over 20 percent of the population, is another key factor. Significant funding is committed to construction within the healthcare sector, in anticipation of the future healthcare requirements for the 60 percent of citizens (17.6 million) aged between 15 and 64. The Ministry of Health has allocated more than $18 billion for healthcare services and social development, including the construction and equipping of primary healthcare centers, the building of 120 new hospitals and the upgrade of four existing hospitals. In light of this, the Saudi Construction Summit, which will be held in Jeddah on June 19-22, is recognizing the unprecedented opportunity this program 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 Ozair Shaiq, Conference Director, Saudi Construction Summit. Shaiq also highlighted 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. "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 Summit," said Shaiq. The Saudi Construction Summit will provide organizations in civil engineering, primary construction, secondary finishing and related sectors with new insight into the design, construction and business model considerations required to develop a cohesive and efficient social infrastructure. "Over the next decade, Saudi Arabia is expected to face a sharp increase in healthcare and education demand. 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.
