{"id":40699,"date":"2017-01-15T22:16:33","date_gmt":"2017-01-15T15:16:33","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=40699"},"modified":"2017-01-15T19:35:19","modified_gmt":"2017-01-15T12:35:19","slug":"impact-of-saudis-20bn-project-cull-not-likely-to-be-felt-this-year","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/impact-of-saudis-20bn-project-cull-not-likely-to-be-felt-this-year\/","title":{"rendered":"Impact of Saudi's $20bn project cull not likely to be felt this year"},"content":{"rendered":"


\nSaudi Arabia’s plan to cut up to US$20 billion worth of infrastructure projects will have a staggered impact on the region’s largest economy, say analysts. The cuts will “increase pressure on a sector which has already struggled”, said Khatija Haque, Emirates NBD’s head of Mena research. But she said its effect will probably be spread over many years. She was speaking at an infrastructure forum held jointly by the Spanish, German, British, Italian, French and Canadian business councils at Dubai Chamber on Thursday.Ms Haque said that Saudi Arabia has been a major market for infrastructure investments since announcing some big long-term infrastructure projects after the Arab Spring in 2011. “Now Saudi Arabia has to adjust to a world where their revenues are significantly lower than they thought they might be,” said Ms Haque. “They’re looking at those projects again, they’re scaling some down, they’re looking at ways to cut spending not all in one go, but over the medium term.”Last week, Bloomberg revealed that PwC had been appointed to review $69bn worth of government contracts, with a view to culling one-third of them.Ms Haque said that she envisaged that the Saudi market for infrastructure investment this year is likely to be similar to last year. “We don’t think that government spending is going to be very different. We think they will probably overshoot the announced figure of 890bn riyals [Dh871.59bn]. We are looking for around 950bn riyals of spending this year – not that different to the 930 billion for 2016.”Ms Haque said that “a lot of the challenges that were faced last year are going to remain issues” for the infrastructure sector, but that the worst of the problems were likely to be over given that the oil price had improved, which will mean there is more liquidity. “We don’t think that governments in 2017 will have to be as careful with the spending and as aggressive with the cuts to spending as they were in 2015 and 2016.” As a result, debt issuance is expected to be slightly lower than last year and governments will also seek to plug funding gaps by privatisations and asset sales, which could take time to bring to market. “It’s not something that can be done quickly because a lot of the companies that the government wants to privatise first need to be restructured and put in a position where investors find them attractive. That kind of restructuring takes time and we certainly expect to see and hear more of those kinds of deals in the next one to two years.” On Thursday, the consultancy firm JLL published its KSA Year in Review report, which said that the kingdom’s real estate sector suffered from a lack of liquidity for most of the year. It said that this was eased following the $17.5bn international bond sale the kingdom pulled off in October, which led to the start of repayments to the country’s contractors worth $10.6bn. It also said that the likelihood of improved oil prices paved the way for a more positive economic outlook.Jamil Ghaznawi, JLL’s country head of Saudi Arabia, said: “The government’s major plans to energise the market have resulted in a more positive outlook for 2017 in line with measures to counteract reduced government and consumer spending.” mfahy@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Impact of Saudi’s bn project cull not likely to be felt this year<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Saudi Arabia’s plan to cut up to US$20 billion worth of infrastructure projects will have...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-40699","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-aAr","jetpack-related-posts":[{"id":150701,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-arabia-restructures-aviation-infrastructure-with-major-airport-projects-report\/","url_meta":{"origin":40699,"position":0},"title":"Saudi Arabia restructures aviation infrastructure with major airport projects: Report","date":"April 7, 2025","format":false,"excerpt":"\r The aviation sector strategy represents a comprehensive plan that includes the two main airlines: Riyadh Air and Saudi Arabian Airlines\r \r Source : arabianbusiness.com\r Read more...Saudi Arabia restructures aviation infrastructure with major airport projects: Report","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2025\/04\/Saleh-Al-Jasser-1000x667-1.jpg?fit=1000%2C667&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":130906,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-arabia-signs-10-billion-investment-deal-for-local-infrastructure-projects\/","url_meta":{"origin":40699,"position":1},"title":"Saudi Arabia signs $10 billion investment deal for local infrastructure projects","date":"September 25, 2022","format":false,"excerpt":"\r The agreement will provide over 150,000 housing units, different in size and design, covering the 11 cities\r \r Source : arabianbusiness.com\r Read more...Saudi Arabia signs billion investment deal for local infrastructure projects","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/09\/Riyadh-Saudi-Arabia-1000x667-1.jpg?fit=1000%2C667&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":168715,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-arabia-launches-2-7bn-digital-infrastructure-push-with-worlds-largest-government-data-centre\/","url_meta":{"origin":40699,"position":2},"title":"Saudi Arabia launches $2.7bn digital infrastructure push with world\u2019s largest government data centre","date":"January 2, 2026","format":false,"excerpt":"\r Saudi Arabia launches world\u2019s largest government data centre, driving a $2.7bn digital infrastructure impact under Vision 2030 The post Saudi Arabia launches $2.7bn digital infrastructure push with world\u2019s largest government data centre appeared first on Arabian Business: Latest News on the Middle East, Real Estate, Finance, and More.\r \r\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2026\/01\/Saudi-Arabia-data-centre-riyadh-1000x637-1.jpg?fit=1000%2C637&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":161629,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/riyadh-builds-global-city-status-with-7200-smart-infrastructure-push-ahead-of-saudi-mega-events\/","url_meta":{"origin":40699,"position":3},"title":"Riyadh builds global city status with 7,200 smart infrastructure push ahead of Saudi mega events","date":"September 26, 2025","format":false,"excerpt":"\r Riyadh advances urban infrastructure with 7,200 projects, 800,000 km of service networks, and smart city upgrades as it prepares for Expo 2030 and FIFA 2034 in Saudi Arabia\r \r Source : arabianbusiness.com\r Read more...Riyadh builds global city status with 7,200 smart infrastructure push ahead of Saudi mega events","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2025\/09\/Saudi-real-estate-1000x667-1.jpg?fit=1000%2C667&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":44822,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bechtel-lands-contract-to-run-key-saudi-projects-body\/","url_meta":{"origin":40699,"position":4},"title":"Bechtel lands contract to run key Saudi projects body","date":"February 20, 2017","format":false,"excerpt":"\r The US construction company Bechtel has been awarded a contract to help set up and operate Saudi Arabia's National Project Management Organisation (NPMO). The NPMO, known as Mashroat, will support Saudi government agencies and municipalities to create their own project-management arms to manage large-scale, complex infrastructure programmes required under\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":154059,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/how-saudi-arabia-can-deliver-major-event-infrastructure-on-time-and-on-budget\/","url_meta":{"origin":40699,"position":5},"title":"How Saudi Arabia can deliver major event infrastructure on time and on budget","date":"May 22, 2025","format":false,"excerpt":"\r With the World Cup, Expo 2030 and Winter Games ahead, Saudi Arabia must focus on smart procurement, risk control and coordination to deliver on time and build a lasting legacy\r \r Source : arabianbusiness.com\r Read more...How Saudi Arabia can deliver major event infrastructure on time and on budget","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2025\/05\/construction-tower-cranes-1000x667-1.jpg?fit=1000%2C667&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/40699"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=40699"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/40699\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=40699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=40699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=40699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}