Text Version
RSS Feeds
Home Forum Photos Features Newsletter Archive Employment
About US Help Site Map
SEARCH   About US FAQ Site Map Site News
  -Text Version
  -RSS Feeds
  -News Archive
  -Give us feedback
  -Voices of Readers
  -Online community
  -China Biz info
  What's new
Infrastructure project spending to soar in GCC nations: report
+ -
21:03, September 28, 2009

 Related News
 Ambassador: Chinese president's visit to enhance co-op with GCC
 Ambassador: Chinese president's visit to enhance co-op with GCC
 GCC leaders arrive in Riyadh for emergency summit on Gaza
 GCC wraps up summit with approval of monetary union
 GCC approves monetary union
 Comment  Tell A Friend
 Print Format  Save Article
Infrastructure spending of member countries of the Gulf Cooperation Council (GCC) is expected to reach 205 billion U.S. dollars by 2013, local newspaper Gulf News reported Monday.

Although funding has emerged a big challenge in the context of the global credit crisis, economists expect GCC governments to support most infrastructure projects and bond issues will be a major source of funding for many of the projects, said the report, quoting the latest estimates by Standard Chartered Bank.

Saudi Arabia alone accounts for more than 50 percent of regional infrastructure spending with 105 billion dollars in investments planned in projects such as hospitals, roads, railways and airports, according to the report.

Power and water projects in GCC nations are largely carried out by quasi-government entities, and these projects are seen as a high priority, as the additional capacity is urgently required to address demands of the region's growing population, the newspaper said.

Annual GCC electricity demand is expected to grow 10 percent and desalination demand 8 percent until 2015. GCC countries plan to spend nearly 70 billion dollars in the next four years to expand present facilities and create new capacity.

Financing for many of the large-scale projects will continue to be challenged by tighter global liquidity conditions. The Middle East was the world's largest project finance market only a couple of years ago. However, lending decelerated sharply due to the global financial crisis.

Analysts and bankers predict a slow recovery in the project finance market during the next two quarters.

The GCC, a regional trade bloc created on May 25, 1981, comprises six Gulf Arab states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.


  Your Message:   Most Commented:
Indian media stinks up public opinions
Which country has the most beautiful women?
World's top ten most mysterious and horrible spots
How do India's middle school textbooks portray China?
China denies entering other countries' airspace

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by People's Daily Online, All Rights Reserved