Infrastructure Investment in Saudi Arabia
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Authors
Looney, R.E.
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Date of Issue
1990
Date
1990
Publisher
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Abstract
Since the 1973/74 oil price increases, Saudi Arabia has embarked a major
program of infrastructure expansion. The purpose of this program is to alleviate the many bottlenecks
hindering increases in the country's non-oil productive sectors. The purpose of this
paper is to examine the effectiveness of the country's infrastructure program. In particular has
the Saudi Arabian government's investment program been successful in reducing inflationary
pressures and hence in creating an environment conducive to sustained expansion of the non-
-oil private sector economy? On the other hand, has the government's massive investment in infrastructure
simply created an additional inflationary source of aggregate demand for the
kingdom's scarce domestic resources?
The main findings of the study are that the country's infrastructure led growth has been successful
in achieving its main aim: the reduction in structural sources of inflationary pressures
in the non-oil sectors. In this respect, the government's strategy began paying fairly respectable
growth rates, even during periods of slack oil revenues. It still remains to be see however if past
infrastructure investments will be able to sustain the growth momentum built up in the late 1970s
and early 1980s.
Type
Article
Description
International Journal of Transport Economics, October 1990.
Refereed Journal Article
Refereed Journal Article
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Citation
Looney, R.E., "Infrastructure Investment in Saudi Arabia," International Journal of Transport Economics, October 1990.
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.