Massive project spending planned in Gulf region

Infrastructure spending by Gulf countries is expected to reach $205 billion (Dh752 billion) by 2013, according to latest estimates by Standard Chartered Bank.

Although funding has emerged a big challenge in the context of the global credit crisis, economists expect Gulf governments to support most infrastructure projects and bond issues will emerge a major source of funding.

Saudi Arabia alone accounts for more than 50 per cent of regional infrastructure spending with $105 billion in investments planned in projects such as hospitals, roads, railways and airports.