The Saudi Ministry of Finance signed financing agreements with some local banks, with a value of SAR 25 billion, to implement some infrastructure projects scheduled to start in 2023 and 2024, to accelerate the entry into force of these projects.
The signing of these agreements was arranged by the National Center for Debt Management in line with the direction of the Ministry of Finance to enable and support strategic infrastructure projects in the context of achieving the Kingdom’s Vision 2030.
This approach aims to support financial sustainability, provide liquidity, and diversify financing channels at reasonable prices, especially since the coming period will witness future hikes in interest rates.
The infrastructure in Saudi Arabia is witnessing rapid development, through extensive government spending and the participation of the private sector, in addition to opening the way for foreign investment in the sectors of transportation, energy, electricity, water, communications, and others.
Access to a strong and comprehensive infrastructure is one of the pillars of the Quality of Life Program 2020, which is one of the programs to achieve the Kingdom’s Vision 2030.
Saudi Arabia ranked 30th globally in the annual Global Competitiveness Report of the World Economic Forum 2015, which assesses the infrastructure in 144 of the world’s economies and includes the quality of the road, rail networks, and the quality of electricity supply.
Saudi Arabia is likely to spend $1.1 trillion on infrastructure between 2019 and 2038.
The Kingdom and the Middle East have also become the preferred destination for investors and fund owners, looking for a stable and reliable return on the capital they invest in infrastructure projects.
It was ranked 11th globally as the best market for investment in infrastructure projects, according to a report issued by IC Harris, a global consultancy.
According to the Global Competitiveness Report, the Kingdom advanced six ranks in 2018, ranking 34th globally on the infrastructure axis.
It also ranked first in the world in the road network interconnection index and advanced six positions from the previous year in transport infrastructure, 4 positions in the road infrastructure quality index, 5 positions in the efficiency of air transport services, 4 positions in the efficiency of port services, and 24 positions in the efficiency of train services.