>> ASIAONE / NEWS / LATEST NEWS / BUSINESS / STORY
Saudi eyes falling costs to finish projects
Sat, Dec 06, 2008
AFP

RIYADH, Dec 6 (Reuters) - Saudi Arabia plans to push ahead with development projects despite falling oil income, hoping to tap opportunities created by falling construction costs, the Saudi central bank governor said in published remarks.

"We intend to make sure that these developmental projects go ahead and get adequate financing as it is an opportunity to implement more projects while there is less pressure on resources as the global economy slows down," Hamad al-Sayyari told the London-based weekly Middle East Economic Digest.

"(Sayyari) says that with global construction activity slowing and construction costs moderating, it is a good time for Riyadh to push ahead with development spending, even if it means tapping into the country's financial reserves," MEED said in its latest issue, published late on Friday.

Italy's Saipem, SpA , a major contractor for Saudi Arabian oil company Aramco's $9 billion Manifa oilfield project,
said last month the Saudi firm planned an analysis "aimed at cost optimisation" on the project.

It was one of several reports of Saudi Arabia, the world's leading oil exporter, aiming to renegotiate contracts it signed at the height of the commodities price boom.

"Some government projects will also be financed from the government's budget," Sayyari said in the interview with MEED.

"The Saudi economy has a lot of resilience," Sayyari said.

"The banking system is strong and stable, with high liquidity and high profit and capital ratios. Government finances are in good shape, with good surpluses this year, and the current account is strong, with a substantial financial surplus."

"We are optimistic about the economy," he said. "Of course, developments in the oil price will have an impact on government revenue, and that will be reflected in next year's budget, which is going to be a challenge, but at the current oil price we think the government's finances will be ok."

 

 
STORY INDEX
 
  Saudi eyes falling costs to finish projects
   
 
  CS investment banking to go on
   
 
  India central bank cuts rates
   
 
  HK to create 250,000 jobs
   
 
  China Nov exports fall
   
 
  ANZ to cut 800 jobs
   
 
  S$289m credit facility for ING
   
 
  Job losses worst since 1974
   
 
  Oliver Stone stays controversial
   
 
  Interest in Yahoo search
   
>> RELATED STORY
Saudi eyes falling costs to finish projects
Oil falls below US$46
Two town councils reviewing investments

Elsewhere in AsiaOne...

Business: Two town councils reviewing investments

 

We welcome contributions, comments and tips.
a1admin@sph.com.sg