KSA, 4 July, 2024 : Narrowing the GDP per capita gap between Saudi Arabia's urban hubs and regional areas by just 10% could add SR27 billion ($7.2 billion) to the nation’s GDP annually, according to a report by Arthur D. Little (ADL).
ADL's analysis highlights the importance of regional development in achieving Saudi Arabia’s Vision 2030 goal of becoming one of the world’s 15 largest economies. While cities like Riyadh, Dammam, and Jeddah have an average GDP per capita of SR107,000, regions like Aseer and Al-Qaseem average around SR73,000.
Eddy Ghanem, Partner at Arthur D. Little Middle East, emphasized the strategic significance of developing regional economies to foster inclusive growth. The report outlines a framework based on five pillars crucial for regional development: visionary strategy, governance, human capital, infrastructure, and investment.
Key Pillars for Regional Development:
- Strategy: Align regional strategies with national priorities, leverage local advantages, and prioritize sustainable practices.
- Governance: Ensure stakeholder commitment, establish clear frameworks, and implement coordination mechanisms.
- Human Capital: Develop tailored programs to equip the workforce with necessary skills and foster retention through attractive living conditions.
- Infrastructure: Use an integrated approach to infrastructure development and explore diverse financing models.
- Investment: Encourage private sector engagement and leverage entities like the Public Investment Fund to stimulate growth.
Tobias Aebi, Principal at Arthur D. Little Middle East, stated that a multifaceted approach encompassing these pillars is essential for achieving Saudi Arabia's socioeconomic goals and global recognition. Integrating these elements into regional initiatives will help propel the country toward its Vision 2030 ambitions and unlock social potential across its regions.
Source : www.zawya.com
