RIYADH – Saudi Arabia’s oil-rich economy is immune to the global economic meltdown and the nation is pushing ahead with several key projects, said the minister of transportation Wednesday.
Speaking at the Saudi-European Euromoney economic forum on the situation, Jubarah al-Suraisry said much of the problem revolves around ‘a crisis of trust’ between the lenders and borrowers, which does not apply to Saudi Arabia since it has been financing projects in the kingdom, preserving higher growth rates and pumping money into developmental projects, such as the kingdom’s ports.
Saudi Finance Minister Ibrahim al-Assaf told the meeting that his ministry had approved during the first quarter this year contracts worth nearly US$11 billion, twice as many as the same time last year.
Al-Assaf said investment expenditures had been increased by 36 per cent in this year’s budget to insulate the country from the world economic crisis.
Saudi Arabia’s oil wealth has largely cushioned it from the worst of the crisis, but analysts still see its economic growth rate contracting sharply. -Nampa-AP
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