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The growth recorded by non-oil economic
platforms in Bahrain has resulted in
increasingjobopportunities.Infrastructure
investments are valued at more than $ 6
billion, in addition to the newly introduced
investments that are valued at around $ 5
billion. These investments have reflected
positively on the construction, real estate
and tourism sectors in the kingdom.
The report also underlined the necessity
of linking infrastructure investments in
the Gulf countries with tangible projects
conducive to providing full support
to the region’s economy in the future,
calling for a reconsideration of the
potential investments in accordance
with the allocated budgets. The report
noted that integrated strategies capable
of drawing foreign investments are a
must to maximise financial revenues.
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In the meantime, the Bahraini
government is planning to continue
spending on large-scale infrastructure
projects in order to further strengthen
its investment-friendly environment
and boost urban development.
Conclusion
The report concluded by highlighting
that the region’s countries should
show full commitment to overcoming
financial
challenges
faced
by
infrastructure investments as their
potential returns are conducive
to
achieving
future
economic
objectives set by the GCC states.
The report referred to recent statistics
indicating that KSA is planning to spend
around SAR 630 billion on infrastructure
projects over the coming few years – this
is out of SAR 3.75 trillion worth of projects
allocated to primary economic sectors,
including railway, road and airport
enterprises. In the meantime, the Saudi
government is reappraising a number
of projects in-line with its economic
diversification strategy. Therefore, it
has stopped funding major projects
valued at around $ 267 billion, including
infrastructure projects whose returns
are not aligned with the new strategy.
Mazaya Monthly Real Estate Report -
Week 4 - December 2016