Sunday 16 December 2012

Saudi Arabia spending big on rail projects | Al Bawaba

Rail transportation is playing an increasing role in the Saudi transportation sector. The government has launched a number of initiatives to develop this sector through major railway expansion projects connecting the different regions of the Kingdom. Presently, the current value of executed projects is estimated at SR 50 billion, according to a report by the National Commercial Bank (NCB).

Saudi Arabia's Railway Master Plan (SRMP) shows about SR 365 billion will be invested for railway infrastructure by 2040.

The Kingdom's growing economy, on the back of high oil prices, has led to heavy investments in railway infra-structure. Nominal GDP for the Transport and Communication (T&C) sector grew at a CAGR of 9 percent between 2002 and 2011. In 2011, T&C's nominal GDP was valued at SR 69.8 billion, accounting for 3.23 percent of total nominal GDP. In 2014, this is expected to reach SR 90 billion, accounting for 3.63 percent of total nominal GDP.

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