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POPULATION GROWTH BOOSTS SAUDI DEMAND.

Asia Africa Intelligence Wire

| January 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Market - Africa/Mid-East)

Demographic factors will put strong upward pressure on both private and public expenditure in Saudi Arabia over the next several decades. According to PRB statistics, Saudi Arabia's population will grow 208 percent from 2003 through 2050. That, in turn, will force the government to invest heavily on infrastructure upgrades

Late in 2003, the Saudi Arabian government announced US$187 billion will be invested in infrastructure projects over the next 20 years. Most of that will be dedicated to expanding the capabilities of the electrical power and water systems. Aware that it can not fund the projects on its own, the government is laying the foundation for large scale foreign investment

Most of the equipment required for making the infrastructure upgrades will be imported. Equipment sectors that will benefit most from increasing Saudi demand include electrical power grid components and pumps used in water distribution systems.

The government of Saudi Arabia has announced that it will spend US$347 million on upgrading the nation's tourism infrastructure from 2003 through 2007. There are approximately 7.5 million visitors per year and they account for 9 percent of GDP, making tourism the second most important economic segment after petroleum

Recent bombings will have a negative impact on casual tourism, but they represent only a small percentage of all ...

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