Diverse municipal investments can give rise to more internationally competitive cities in Saudi Arabia and accelerate the Kingdom’s development in line with Vision 2030 by contributing SAR 20 billion yearly to gross domestic product (GDP). Global management consulting firm Bain & Company presented this finding throughout the currently concluded Municipal Investments Forum in Riyadh.
Bain & Company led a workshop titled the ‘Role of Municipal Investment in Achieving Vision 2030 and Associated Impact’ throughout the forum, which took place Feb. 24 – 26, 2020 to spotlight an array of investment opportunities in Saudi Arabia’s municipalities.
Samer Bohsali, a Middle East-based partner in Bain & Company’s Public sector practice led the workshop. During the presentation, Mr. Bohsali mentioned that municipal investments are pegged to attain SAR 5 billion to government revenue yearly apart from creating 125 thousand jobs for the locals and residents.
“Given the enormous economic influence of municipal investments, it is critical to entice more investors into supporting initiatives in a number of municipalities and governorates,” stated Mr. Bohsali. “Investments such as these are key to constructing competitive cities in Saudi Arabia in support of the aims and goals of Vision 2030.”
According to Mr. Bohsali, municipal investments can support 35 objectives of Vision 2030 and its six main programs, namely Privatization, Housing, Quality of Life, Hajj, National Transformation, and Fiscal Balance.
“It is important for governments worldwide, not just in Saudi Arabia, to focus on constructing competitive cities because of their many economic benefits,” he stated. “A competitive city’s GDP growth stands at 5x compared with average cities. Job growth stands at 4.5x relative to average cities. In terms of income growth, competitive cities experience a 10x increase compared with average cities.”
Besides municipal investment contributions to Vision 2030, Mr. Bohsali additionally shared with the attendees, how Saudi Arabia's cities are performing nowadays based on the most important components of a competitive city. The Kingdom provides many opportunities, which includes mixed-use developments, which provide residential, office, and commercial space, to local, regional, and international investors in line with Vision 2030.
This year’s Municipal Investments Forum highlighted not only the many opportunities in the municipal sector however also provided a platform for the participants from the public and non-public sectors to construct partnerships, share ideas, and recommend solutions to challenges. Bain & Company’s session was one of a series of workshops throughout the event.