Amr Al-Dabbagh, governor of Saudi Arabian General Investment Authority (SAGIA), said: “We are talking now about much less construction cost because of the drop in the prices of steel, cement and other building materials.”
He said: “It will cost us today 30 percent to 40 percent less for infrastructure projects than six months back.”
He added that Saudi Arabia is well positioned to manage a global economic recession this year because of its high foreign currency reserves and low sovereign debt. Al-Dabbagh further said: “We do not see ourselves going through a recession, because the fundamentals are right. We still expect the economy to grow and we still expect the projects to proceed.”
Hamad Saud Al-Sayyari, governor of Saudi Arabian Monetary Agency (SAMA), had earlier said that the government spending will help the country overcome a slump in revenue caused by falling oil prices.
Standard Chartered Plc last month cut its economic growth forecast for Saudi Arabia to 1% from 2%.
