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HOUSE_OVERSIGHT_016151

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pharmaceuticals manufactured locally. We thus see potentially strong opportunities for the private hospital operators, the health insurance providers and local pharmaceutical manufacturers. 4. Animprovement in the availability of affordable housing for Saudi nationals: The Saudi housing shortage has been a persistent issue for the country; with the shortfall currently standing at an estimated 1.2mn units, in our view. Looking forward, we believe this shortfall will likely intensify given strong demand formation. The NTP is seeking to introduce greater numbers of affordable housing units and greater availability of financing. Indeed, the ministry of housing is looking to invest cUS$16bn in achieving these aims by 2020. Whilst we do not believe these measures go far enough to fully resolve the housing shortage, we nevertheless see material opportunities for Saudi real estate developers. 5. Growth in telecom/fibre infrastructure: The NTP is seeking to greatly enhance connectivity in the country, largely through increased usage of internet. Reflecting that, the government has pledged approximately US$2bnn to significantly increase the availability of high speed FTTH networks in remote areas, increase mobile broadband coverage and density in urban centres (3G/4G) and allocate an increased amount of bandwidth to the mobile service providers. We thus see significant volume growth potential for the telecom service providers (particularly with regards to mobile data, where we see scope for price increases). Furthermore, we expect much of the capital expenditure required to expand the FTTH and Mobile networks to be provided by the private sector, which in our view will accelerate the case to spin off their tower portfolios (as a method of funding capex expansions). 6. Significant growth in downstream petrochemicals capacity and metals & mining: The NTP’s drive to diversify revenues away from the oil sector has seen it focusing on exports of non-oil commodities. In particul

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