Saudi Arabia's SAR 690 billion ($183.98 billion) budget approved for 2012 indicates growing infrastructure spending and housing investments in the country. In line with the increasing government-based development projects, Saudi Arabia's steel consumption is expected to remain at high levels in 2012.
While spending priorities have not indicated a major change compared to the previous year, infrastructure investments for 2012 have registered a year-on-year increase. Water, agriculture and related infrastructure spending is budgeted at SAR 57.5 billion ($15.3 billion), up 13 percent year on year. Funds have been allocated for new projects in the industrial cities, as well as for enhancing water supply and improving water and water treatment networks.
SAR 250 billion ($66.66 billion) financing to build 500,000 housing units has been allocated at the Saudi Arabian Monetary Agency (SAMA); however, it is not included in the budget.
Saudi Arabia's 2011 economic performance was strong, with a real GDP growth of 6.8 percent, the highest since 2003, while manufacturing, construction and transport and communications performed unexpectedly well.