RIYADH: In its latest viewpoint, global management consulting firm Arthur D. Little (ADL) analyses the significant role of regional development in realizing Saudi Arabia’s Vision 2030 goal of becoming one of the world’s 15 largest economies.
The report highlights key success factors that could propel the Kingdom’s regional economies and contribute to national growth.
KSA’s regions offer tremendous potential to support GDP growth. While established metropolitan centres like Riyadh, Dammam, and Jeddah boast an average GDP per capita of around SAR107,000 (US$28,500), regional areas such as Aseer and Al-Qaseem hover closer to SAR73,000 (US$19,500). ADL estimates that narrowing the GDP per capita gap between major urban hubs and regional territories by only 10% could potentially inject SAR27 billion (approximately US$7.2 billion) into the national GDP annually.
Eddy Ghanem, Partner at Arthur D. Little Middle East, states, “Developing Saudi Arabia’s regional economies is a crucial strategic move with far-reaching economic implications. By strategically tapping into the potential of areas beyond major cities, the Kingdom paves the way for inclusive growth and gains momentum to become one of the world’s 15 largest economies.”
Learning from ongoing collaboration with the Kingdom’s regions and from global benchmarking such as Brazil’s Growth Acceleration Program (PAC) and Spain’s regional development trajectory, the report outlines a success framework, pinpointing five foundational pillars pivotal for advancing regional development. These pillars include setting a visionary strategy, creating robust governance structures, cultivating human capital, improving infrastructural, and attracting both public and private investment:
“Unlocking the potential of regional growth demands a multifaceted approach encompassing strategic vision, robust governance, human capital development, infrastructure enhancement, and investment attraction.”
Tobias Aebi, Principal at Arthur D. Little Middle East, adds, “These pillars serve as the foundation for achieving Saudi Arabia’s ambitious socioeconomic goals and propelling its regions toward global recognition.
Incorporating these elements into regional development initiatives will not only propel Saudi Arabia toward its global economic aspirations in line with Saudi Vision 2030 but also unlock social potential across the Kingdom’s regions.
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