Tuesday 30 March 2021

#SaudiArabia's PIF to underpin recovery of kingdom's construction sector | The National

Saudi Arabia's PIF to underpin recovery of kingdom's construction sector | The National

Saudi Arabia's construction sector is set to recover this year, benefiting from the Public Investment Fund's move to direct more funding to the local economy.

Contract awards in 2020 in the kingdom slumped by around 60 per cent to 79.5 billion Saudi riyals ($21.2bn) as project owners wrestled with movement restrictions to halt the spread of Covid-19, global supply chain disruptions and reductions in manpower capacity, according to the US-Saudi Business Council.

"As the global economy crawls back to a new normal, the role of the PIF will be instrumental in developing the local economy," the USSBC said.

The Arab world's largest economy increased spending by an additional $42bn in 2020 to deal with the impact of the pandemic. But capital expenditure was cut to $37bn, from a budgeted $46bn, which had a knock-on effect on construction.

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