General Investment Authority has granted a license to a US consortium
to build 3,000 schools in different parts of the Kingdom at a total
cost of SR13 billion.
project, the largest since the Kingdom opened up for foreign
investments less than a year ago, will contribute substantially to
expand educational facilities around the country, GIA Governor Prince
Abdullah ibn Faisal ibn Turki said in a statement released here
schools will be constructed on the basis of build-operate-transfer
(BOT) system in favor of the Education Ministry.
companies, which will have equal shares in the project, were named as
SGI Global, AIU DIV of AIG, STE2EP LLC, and Dowd, Sanford & Mazza.
They will set up a new company named Educational Utilities Development
new license will create a major shift in the concept of foreign
investments in the Kingdom, and will boost confidence of major firms
to invest in Saudi Arabia,” Prince Abdullah said.
project’s capital is the largest in the Arab world and is expected
to encourage more investors into the Kingdom, he added.
there are more than four million students and 27,000 schools in Saudi
Arabia which has a population of 19 million, seven million of whom are
Kingdom has spent more than SR153 billion on education during the
fifth Five Year Plan alone. The government has set aside a sum of SR53
billion for education and vocational training, including construction
of 800 schools, in this year’s budget.
government is currently using 700 rented buildings to operate schools
in different parts of the country.
said it also granted a license for Zincs Resources of Britain to
produce 100,000 tons of high-quality zinc from the Red Sea city of
Yanbu costing SR958 million. The project, the first of its kind in
Saudi Arabia, also includes setting up a factory to produce sulfuric
acid and a water treatment plant, and it will generate its own power.
opening the door to foreign investment last July, GIA has awarded 91
licenses to foreign and Saudi firms worth SR30.5 billion ($8.13
billion), of which SR28.5 billion, 93.6 percent, is foreign.
Abdullah said the objective of increased foreign investment was to
inject necessary funds to ensure economic growth, relieve pressure on
the national budget, increase private sector participation, diversify
industrial and technical base and create jobs for a growing work
Kingdom is currently reviewing bids from 12 international oil
companies to develop three major gas projects worth tens of billions
Source: Arab News©