Biomed Middle East

Budget attaches importance to research and development

The State budget approved by the Cabinet Monday attaches importance to projects related to research and development and science and technology projects for the e-government.

According to a detailed and comprehensive statement issued by the Ministry of Finance, the budget puts emphasis on optimizing the use of available resources and giving priority to projects that ensure balanced development and more employment opportunities and job creation.

Specifically, the focus will be on education, health, social and security services, municipal services, water and sewage services and roads and highways, the ministry’s statement said.
The budget includes financing for new and ongoing projects with a total value of SR256 ($68.3) billion.?Appropriations for the main development and public service sectors are:
Education and training:??Continued implementation of King Abdullah Bin Abdul Aziz Public Education Development Project (Tatweer) amounting to SR9 billion through the Education Development Holding Company owned by the Public Investment Fund. New projects include 610 schools, in addition to 3,200 schools under construction and more than 600 schools completed in FY 2010, and rehabilitation of 2,000 school buildings.

For higher education, the new budget includes appropriations for completing construction of campuses for the newly created universities including housing of faculty. The scholarship program (first and second phase) will continue next year.?

Health and social affairs: ?Projects include new primary care centers throughout the Kingdom, 12 new hospitals.

There are 120 hospitals under construction with a total capacity of 26,700 beds.?For social services, the new budget includes appropriations to build sports clubs, social centers, social welfare and labor offices. In addition, it includes further support for poverty-reduction programs that will shorten the time required to eradicate poverty.?

Municipality services:??New projects include inter-city roads, bridges and road lights, which should help ease traffic bottlenecks.

It also includes other environment-related projects.?
Transportation and telecommunication:??New projects include roads totaling 6,600 kilometers to be added to 30,200 kilometers of roads under construction.

The budget also includes appropriations to build four new airports and rebuild King Abdulaziz International Airport. The budget also includes projects to build additional berths and enhance the power network in some ports.??

Water, agriculture, and infrastructure: Appropriations for new projects include enhancing water sources, dams and wells and expanding and improving water and sewage networks. There are also allocations for building new water desalination stations and upgrading existing stations. New projects will be undertaken in the industrial cities of Jubail, Yanbu, and Ras Azur to accommodate new investment projects.?

Specialized credit development institutions and government financing programs:??Specialized credit institutions (Real Estate Development Fund, Saudi Industrial Development Fund, Saudi Credit and Saving Bank, Saudi Arabian Agriculture Bank, Public Investment Fund, and Government Lending Program) will continue to provide loans to the industrial and agriculture sectors, housing, and small- and medium-sized enterprises, which will support job creation and enhance growth prospects.?

Gross Domestic Product: ?According to the Central Department of Statistics and Information, GDP is estimated to reach SR1,630,000 ($434.7) billion in current prices in 2010, reflecting a growth of 16.6 percent compared to 2009.

The private sector is estimated to grow by 5.3 percent in current prices in 2010.?In real terms, overall GDP in 2010 is estimated to grow by 3.8 percent, with the government sector growing by 5.9 percent and the private sector by 3.7 percent; its contribution to GDP is expected to be 47.8 percent.

Foreign trade and balance of payment:??According to preliminary data from the Saudi Arabia Monetary Authority, total exports of goods are estimated to be SR886.3 ($236.3) billion in 2010, representing an increase of 23 percent over 2009.

Non-oil exports of goods are estimated at SR124.2 ($33.1) billion, reflecting an increase of about 14 percent and representing 14 percent of total goods exported.?Total imports of goods in 2010 are estimated at SR326.2 ($87) billion, representing growth of 0.7 percent compared to 2009.

According to the Saudi Arabia Monetary Agency preliminary data, the trade balance is estimated to record a surplus of SR557.9 ($148.8) billion in 2010, an increase of 41.4 percent compared to last year, as a result of the increase in oil and non-oil exports and the low growth in imports.? The current account is estimated to record a surplus amounting to SR260.9 ($69.6) billion in 2010 compared to SR78.6 ($21.0) billion in 2010, an increase of 32 percent.

Saudi Gazette

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