RIYADH, Saudi Arabia: The Saudi Ministry of Education has signed a 2 billion riyal ($533 million) contract with the China Railway Construction Corporation to build schools in the oil rich kingdom.

Faisal bin Moamer, the Saudi deputy minister of education, told the Saudi Press Agency Saturday that his ministry and CRCC had signed a deal for 200 schools to be built throughout the kingdom within 14 months and with a capacity of 150,000 students.

Bin Moamer said that the deal had been approved by the cabinet, SPA reported Saturday.

Despite the recession and declining oil revenues, Saudi Arabia has ramped-up spending on key services and sectors such as education and health care.