In its latest economic quarterly report, the EDB said the relative stability of the hydrocarbons sector will be contrasted with significant acceleration of growth in the non-oil sector thanks to the initiation of a number of infrastructure projects.
Increased activity in the construction sector will in turn stimulate other sectors, including manufacturing, finance, and retail.
Sound growth in private sector activity should also boost consumer and investor confidence and encourage bank lending, the report said.
It forecasts significant non-oil sector growth this year, aided by growing demand in the private sector.
While real GDP growth reached 5.3 per cent last year, the rate of growth of the non-oil economy is expected to accelerate from 3pc last year to roughly 4.4pc this year.
The robust growth last year was mainly due to normalisation in the hydrocarbons sectors where maintenance in the offshore
The oil sector is expected to remain mostly flat this year as production is anticipated to continue at full capacity, both offshore and from the onshore
Oil sector growth is expected to be around 0.1pc this year and overall real GDP growth around 3.5pc.
"The investment in core infrastructure will not only drive growth, but also have much longer term economic and social benefits for
"Whilst growth from the oil sector will remain flat, there are also several significant projects underway.
"Overall the outlook is positive, both for this year and moving forward."
The initial focus of project spending will primarily be on housing, a priority area for the government.
To date, an estimated
Housing is expected to account for roughly half of the total expenditure, with plans for more than 5,000 housing units expected to be completed within the same time period.
These housing units are part of an ongoing plan by the
The other main priority area is energy supply, as power demand in the kingdom has almost doubled over recent years, from 1,540 MW in 2003 to 2,967 MW in 2012.
Current capacity stands at 4,000 MW and it is expected that two 400-kW transmission stations will be tendered soon.
Efforts are also underway to further improve
The project of modernising and expanding the
The project, which is expected to be completed within 7 to 10 years, is part of a larger GCC rail network anticipated to cost over
Several visits took place during the first half to strengthen ties between
The EDB has also organised a series of delegation visits from
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