The infrastructure in Saudi Arabia is rapidly becoming sophisticated and more forward looking. Initiatives include a novel metro project in the capital city of Riyadh plus emphasis on renewable energy sources. Other measures entail privatisation of the national airliner and allowing licensed foreign carriers the right to operate in the domestic market.

Undoubtedly, some projects like that of a novel metro system in Riyadh are ostensibly overdue. Still, late is better than never.

Recently, three foreign-led consortia won separate design and construct contracts for the Riyadh Metro Project at the prohibitive cost of US$22.5 billion. Work on the 176-km project is due to start in early 2014, with completion in four years time.

Undoubtedly, this is a sizable amount of money, possibly paying the price for not assuming such vital but costly projects several decades ago when carrying out such schemes would have possibly have been cheaper. Nevertheless, Riyadh is getting ready to be equipped with state of the art technology, fitting its new image.

Within the Gulf Cooperation Council (GCC) region, Dubai was the first to carry out such innovative projects. Dubai Metro opened its doors to the public in September 2009. As a sign of success, some 110 million passengers used Dubai Metro in 2012.

Anyway, the metro project in Riyadh reflects proper employment of steady budgetary surpluses. In fiscal 2012 alone, the treasury posted a record surplus of $103 billion, representing a comfortable 14 per cent of the gross domestic product (GDP) at the time.

Interestingly enough, the Gulf Monetary Union (GMU) of which Saudi Arabia is a member, restricts budgetary deficit to 3 per cent of the GDP. The GMU project was launched at the start of 2010.

Also, the metro project testifies to appropriate use of the kingdom’s official state wealth funds or SWF. According to Sovereign Wealth Institute, an authority in the field, Saudi SWF amounted to $676 billion in June, or about 12 per cent of the world’s total.

Other than Saudi Arabia, top on the list of countries with sizable SWF are Norway, the UAE and China.

Other than official holdings, Saudi Arabia is noted for having a sizable number of high net-worth individuals like billionaire Prince Al Waleed Bin Talal.

On another innovative initiative, Saudi authorities are showing exceptional appreciation of renewable energy sources, notwithstanding the fact of being the largest oil exporter in the world. In fact, the kingdom intends to spend an aggressive $109 billion on diverse renewable energy sources.

The plan calls for generating a third of the country’s energy demands by 2032 through renewable energy sources.

Still, another notable and certainly positive development, privatisation of state-owned Saudi Arabian Airlines or Saudia seems to serious more than ever in the past. The move follows a recent privatisation of a strategic unit within the airline system, namely the Saudi Aerospace Engineering Industries.

The eventual privatisation of Saudi should place it a stronger position to compete with powerful regional rivals of the likes of Emirates, Etihad and Qatar Airways. To be sure, Emirates has been selected as airline of the year in 2013 reflecting matters such as customer service and ever expanding network, already covering numerous parts of the world.

On a separate note, plans are underway to have Qatar Airways and Gulf Air commencing domestic services before year-end. In retrospect, the two airliners have won bids to offer flights inside the vast kingdom, and thereby broadening choices available to consumers.

True Saudi Arabia is conservative on social policies, but its economic choices like a metro project and a strong private sector are futuristic.

The writer is a Member of Parliament in Bahrain.