Saudi Arabia aims to build buses, operate toll roads

Daimler last May won an order from Riyadh for 600 Mercedes-Benz Citaro buses, the largest order for the vehicles in the history of its bus division. (Photo courtesy of Daimler)
Updated 07 May 2018
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Saudi Arabia aims to build buses, operate toll roads

  • Toll road plan under consideration
  • Kingdom looks to cut imports and boost manufacturing

RIYADH: Saudi Arabia has held preliminary discussions with foreign firms about manufacturing buses domestically and plans to convert part of its highway system into toll roads to help make its transport system more efficient, the transport minister said.

“We are developing the public transport system with a lot of buses, so we want to see how we can leverage this to develop domestic industry,” Nabeel Al-Amudi said in an interview on the sidelines of a business conference in Jeddah on Sunday.

He declined to name the companies with which Saudi Arabia had been talking.

The Kingdom, which does not have a significant auto manufacturing industry, is spending billions of dollars to expand public transport systems in the capital Riyadh and other big cities, and has imported thousands of buses in the last few years.

Last May, German vehicle maker Daimler received an order from Riyadh for 600 Mercedes-Benz Citaro buses, the largest order for the vehicles in the history of its bus division. China Yuchai International last month announced the delivery of 800 buses to Saudi Arabia.

Producing the vehicles locally would allow Saudi Arabia to save on import costs while creating jobs and expanding domestic industry — key goals of an economic reform program designed to reduce the economy’s dependence on oil exports.

Amudi said the potential bus project was separate from a memorandum of understanding signed by Toyota Motor Corp. in March last year to conduct a feasibility study on producing vehicles and parts in Saudi Arabia.

The reform program features plans to have the private sector operate much of the Kingdom’s transport infrastructure, including airports and sea ports, with the government keeping a role as regulator.

Amudi said that approach would be extended to the highway network.

The government hopes to establish between four and six toll roads which private companies would operate in exchange for fees, although this may be difficult because of the need to give road users the option of taking a non-toll route in each case, Amudi said.

Draft plans for this project may be ready in six months, he added.


Urgency needed to boost Palestinian economy: IMF chief

Updated 26 June 2019
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Urgency needed to boost Palestinian economy: IMF chief

  • The MF has been warning of severe deterioration in the Palestinian economy
  • ‘If there is an economic plan, if there is urgency, it’s a question of making sure that the momentum is sustained’

MANAMA: IMF chief Christine Lagarde said Wednesday that major economic growth was possible in the Palestinian territories if all sides showed urgency, as she took part in a US-led conference boycotted by the Palestinian leadership.
The International Monetary Fund has been warning of severe deterioration in the Palestinian economy, with tax revenue blocked in a dispute with Israel which has also imposed a crippling blockade on the Gaza Strip for more than a decade.
“If there is an economic plan, if there is urgency, it’s a question of making sure that the momentum is sustained,” said Lagarde.
The IMF chief is attending a conference in Bahrain to discuss the economic aspects of a United States plan for Israeli-Palestinian peace, which has already been rejected by the Palestinians as it fails to address key political issues.
Lagarde said for the US plan to work “it will require all the goodwill in the world on the part of all parties — private sector, public sector, international organizations and the parties on the ground and their neighbors.”
Citing examples of post-conflict countries, Lagarde said that private investors needed progress in several sectors including strengthening the central bank, better managing public finance and mobilizing domestic revenue.
“If anti-corruption is really one of the imperatives of the authorities — as it was in Rwanda, for instance — then things can really take off,” she said.
The plan presented by White House adviser Jared Kushner calls for $50 billion of investment in the Palestinian territories and its neighbors within a decade.
The proposals for infrastructure, tourism, education and more aim to create one million Palestinian jobs.
Gross domestic product in the Gaza Strip declined by eight percent last year, while there was only minor growth in the West Bank.
Kushner, opening the conference on Tuesday, called the plan the “Opportunity of the Century” — and said the Palestinians needed to accept it before a deal can be reached on political solutions.
The Palestinian Authority has rejected the conference, saying that the US and Israel are trying to dangle money to impose their ideas on a political settlement.
Washington says it will unveil the political aspects of its peace deal at a later date, most likely after Israel’s September election.