Saudi allocates more than USD 17bn for transportation projects in 2013


Kuwait Financial Centre “Markaz” recently published the executive summary of its report on Saudi Arabia Roads and Railways. In this report, Markaz examines and analyzes the current status of Saudi Arabia Roads and Railways sector. The report highlights the market structure, growth trends, investments and current & potential projects in Saudi Arabia Roads and Railways sector. The report also presents a SWOT analysis of Saudi Arabia Road and Railways sector.

 According to the report, Saudi Arabia’s budget for 2013 has allocated a sum of USD 17.3bn for Infrastructure and Transportation sector, an increase of 16% from previous year. About USD 8bn of this budget would be used in development of 3,700 km of roads, up gradation of existing and construction of new ports and airports. The total value of projects that would be completed during 2013-2017 stands at about USD 25.5 billion.

From 1990 to 2011, the total length of asphalted and paved agricultural roads implemented by Saudi Ministry of Transport has grown by 11.22% p.a. Saudi Arabia being the largest nation in the GCC also has a well-developed road and railways network. Saudi Arabia has in all 59000 km of asphalted roads. When compared to developed economies Saudi Arabia’s roads seem a bit more congested. The massive increase in traffic, an outcome of the Kingdom's industrial and agricultural development, has made road upgrade a necessity.

Saudi Railways sector is in the phase of massive expansion. Saudi Railways organization is responsible for construction and maintenance of Railway networks. The existing Saudi railway network connects the port city of Dammam to the capital Riyadh. The two lines currently operational are the 556 km–long single track line for the sole purpose of transporting freight, and the 449 km–long single track line for passenger trains. Riyadh has maximum number of passengers either arriving to or departing from its station. A large share of freight tonnage has been in transit between Damman port city and Riyadh state capital.

The total investment in Railway Sector from 2007-2013 amounts to approximately USD 7.9 billion. The investments in Railways sector was predominantly on Railway Transport infrastructure and Rail Stations. The investments on Rail station Transport terminals form about 4% of total investments in Railways projects. The remaining 96% is in Railway Transport infrastructure.

Some large railway projects that are being planned or executed in Saudi Arabia are the Land Bridge, the Haramain High Speed Rail Project, ADA - Riyadh Light Rail Transit (Riyadh Metro), MOT-Jeddah Metro: Orange & Blue Line, Medina Municipality - Medina Monorail, SAR - Minerals Railway.

About Markaz

Kuwait Financial Centre 'Markaz', with total assets under management of over KD982.6 million as of June 30, 2013, was established in 1974 has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region. Markaz was listed on the Kuwait Stock Exchange (KSE) in 1997.