Saudi's Al Khodari wins US$ 359.7 mn King Khaled University staff accommodation construction contract
Posted on 5th December 2014
Saudi Arabian construction firm Abdullah Abdul Mohsin Al Khodari and Sons has won a 1.35 billion riyal (US$359.7 million) contract from the government for construction of staff housing at King Khalid University, according to news reports in Gulf Daily News.
The contract has been awarded by the Higher Education Ministry and the details of the project will be disclosed once the deal is signed. The financial impact of securing the contract is expected to start being reflected in its fourth-quarter earnings statement, it said.
Although global oil prices have tumbled to near five-year lows in the last few months, sharply below levels which analysts believe the Saudi government needs to balance its budget, industry experts do not expect major cutbacks in spending by the government.
Though the fiscally-cautious Saudi government has slowed spending to its lowest rate in a decade, its 855bn-riyal state budget for 2014 included plans to build 465 schools and 11 hospitals, as well as provision for a 25 per cent jump in spending on infrastructure projects seen vital to improve public welfare.
Khodari expects to double its capital spending in coming years to cope with the work it hopes to do on the country's big infrastructure projects.
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