Stevens, J D and Al-Dulaijan, S U (1989) Contractor financing, public works in Saudi Arabia. Journal of Construction Engineering and Management, 115(1), pp. 1-14. ISSN 0733-9364
Abstract
In recent years many changes have occurred in the construction industry in Saudi Arabia, caused by the switch in emphasis from new construction—building the infrastructure—to operation and maintenance, the declining revenue from oil sales, and the planned privatization of many aspects of construction. Contractor financing has changed from interest-free loans provided by the government—in the form of large advance payments—to short-term, fee-bearing loans provided by commercial banks. A commercial banking system, established under strict government regulation, is providing loans, bonding, leasing, letters of credit, hedging and other financial services to contractors. Commercial banking in the Kingdom faces various problems not present in western countries, in complying with Islamic mores. This paper discusses the financial requirements set by the Saudi Arabian government for contractors engaged in public works, the establishment of, and the financial services offered by, the commercial banks in the Kingdom, and the cost and qualifications for obtaining these services.
| Item Type: | Article |
|---|---|
| Index terms: | financing, operation and maintenance, leasing, face, revenue, banking, public work, construction industry, privatization, commercial bank, government regulation, Saudi Arabia, qualification |
| Subjects: | Geography, health safety and environment, infrastructure engineering, land economics, maintenance engineering, educational resources, industry analysis, economic analysis, psychology |
| Topics: | Urban Studies, Education, Organizational Design, Business Strategy, Health and Safety, Research Practice, Geographical Context, Engineering Principles |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here