A public transport trade delegation from the Kingdom of Saudi Arabia, supported by the Saudi Arabian General Investment Authority (SAGIA), today outlined plans for more than US$140bn worth of public transport infrastructure projects in the Kingdom.

The projects which are open to public-private partnerships, form part of the country's national transportation expansion program that covers five metro and bus projects, and thousands of kilometers of rail network.

The Kingdom's investment opportunities were revealed during the International Association of Public Transport (UITP) World Congress and Exhibition, currently taking place in Milan, Italy. Authorities revealed a 10-year expansion program that will see US$ 90bn spent on infrastructure, rolling stock and buses and a US$ 51bn spend on operations. The component market for the metro and rail network is valued at US$ 23bn, while rolling stock and bus manufacturing are estimated to be at US$ 9bn each.

The International Association of Public Transport (UITP) has given the KSA a chance to share the exciting new developments in rail projects in the Kingdom that should provide opportunities for all to take part in. These opportunities have been identified following a royal decree to all government ministries to use government spending initiatives to provide incentives for foreign businesses to localize in Saudi Arabia. 

Consequently, the Saudi government takes an advanced step to improve the transport market to attract foreign investors to KSA market. There are new opportunities for UAE businesses to penetrate the KSA market during the upcoming period  on account of the constant demands by the consumer and ease of barriers to entry and government facilities provided for the Gulf States. The UAE businesses have a strong opportunity for entry in the Saudi market compared to other investors.

 

Sources: Al Eeqtisadiah - Okaz - Saudigazette