27-Feb-2013Country Risk Weekly Bulletin - Issue 296
MENA Government Spending to Support Construction Activity in Oil-Exporting Economies
Fitch Ratings anticipated that the construction sector in oil exporters in the Middle East & North Africa will continue to grow, supported by government spending. It said that Saudi Arabia's 2013 budget projects record spending of $219bn or 34% of GDP, constituting a 20% increase from last year's budget. It added that the budget includes a 28% increase in capital spending and that such expenditures will be channeled to the construction sector, which was the fastest-growing sector in 2012. It anticipated infrastructure spending to continue to be strong in Abu Dhabi and to be backed by a $90bn five-year spending plan on housing, schools, infrastructure and leisure projects. Fitch forecast long-term infrastructure growth to continue across the region and to be a key area for tendering activity this year.
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