Saudi Arabia stands to gain from municipal investments, which are projected to contribute 20 billion Saudi riyals ($5.33 billion) every year to the country’s gross domestic product (GDP), a global management consulting firm said.
At the recent Municipal Investment Forum in Riyadh, Bain & Company highlighted the positive impact of municipal investments, citing that they are “pegged to achieve 5 billion riyals to government revenues” annually and also create 125,000 jobs for residents.
“Given the immense economic impact of municipal investments, it is critical to entice more investors into supporting initiatives in various municipalities and governorates,” Samer Bohsali, a Middle East-based partner at Bain & Company said.
“Investments such as these are key to building competitive cities in Saudi Arabia in support of the goals and objectives of Vision 2030,” Bohsali added.
Municipal investments can support the 35 objectives of Vision 2030 and its six main programs, namely privatisation, housing, quality of life, hajj, national transformation and fiscal balance, according to the global management consulting firm.
“It is significant for governments worldwide, not just in Saudi Arabia, to focus on building competitive cities because of their many economic benefits,” he said.
“A competitive city’s GDP growth stands at 5 times compared with average cities. Job growth stands at 4.5 time relative to average cities. In terms of income growth, competitive cities experience a 10 times increase compared with average cities,” Bohsali said.
(Reporting by Gerard Aoun; editing by Cleofe Maceda)
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