Diversification is key to a million new Saudi jobs (page 2 of 2)

Across the GCC, it is estimated that infrastructure spending will be $1.5 trillion over the next five years. In Saudi Arabia, there are between $400bn and $500bn worth of investments (figures vary depending on source) planned or underway.

These projects are split across diversified sectors, but taken as a whole are a sizeable part of the country's push to diversify away from just pumping oil and to create more downstream jobs, rather than see them go elsewhere.

The largest chunk of that investment, 44%, is for construction projects, with 20% each earmarked for petrochemicals and oil and gas. Of the remaining sectors, 9% is for power, 4% for industry and 3% for water. And despite the desire to diversify, 90% of new petrochemical plants being built in the world will be in the Gulf or China.

In the electricity sector, it is estimated that the country needs between 20 and 40 power plants, at a cost of $60bn. For water, it needs nine new desalination plants, costing $5bn. In both cases, it is to replace aging the incumbent infrastructure and to cope with population and industry growth.

It may seem surprising that at a time of record oil prices the kingdom should want FDI, but outside investment brings with it new technology and knowledge, plus a different thinking. Saudi Arabia hopes this will put it in the position to diversify its industries and create over a million new jobs in its economic cities alone.

See also:
Listen to: Sagia pushes for a million Saudi jobs
Listen to: Saudi oil revenue tops US GDP