World Economy

Saudi Building Projects Shrink

Saudi Building Projects ShrinkSaudi Building Projects Shrink

Saudi Arabia’s construction industry faces difficult times ahead as the prospect of state budget cuts adds to painful labor reforms, according to major builder Al-Khodari, in a sign of the strain on an economy squeezed by lower oil prices, Arab News reported. Companies in the sector benefited from a construction boom over the past decade as the world’s top oil exporter had taken advantage of high crude prices to spend heavily on transport, social infrastructure and industrial facilities. But prices have more than halved since the summer of 2014 due to a global supply glut and the volume of building projects looks set to shrink.