 |
| The Diriyah complex in Riyadh, Saudi Arabia. Photographer: Amr Nabil/AP Photo |
Saudi Arabia is pushing ahead with a $20 billion tourism and culture project in its capital despite the kingdom’s fiscal crisis, counting on a rebound in pent-up consumer spending when the global pandemic abates.
Officials have allocated funds for the mega-project in Riyadh, called “Diriyah Gate,” and Crown Prince Mohammed bin Salman told planners to move “full speed ahead, no slowdown,” according to Jerry Inzerillo, chief executive officer of the project’s development authority. Several parts of the project are in construction and the first phase should be completed by the end of 2023, he said.
“We don’t know the economic impact of COVID over a 12-, 24- or 36-month period,” Inzirello said in an interview this week. “But I can tell you one thing I know from his majesty the crown prince: It will not affect the planning of the principal city of Riyadh.”
The world’s largest oil exporter is facing a double crisis after spiking coronavirus cases and energy market turmoil saddled the government with a budget deficit that could rise to around 15% of gross domestic product this year. Officials have nearly doubled their borrowing plans and implemented a series of austerity measures, including raising a value-added tax from 5% to 15%. Even some of the programs under Prince Mohammed’s plan to diversify away from oil are facing spending cuts.
No comments:
Post a Comment