Municipal investments can potentially contribute 20 billion Saudi riyals ($5.3 billion) annually to the Kingdom's gross domestic product (GDP), according global management consulting firm Bain & Company.

The company said in a press statement that these investments can give rise to more internationally competitive cities in Saudi Arabia and accelerate the Kingdom's development in line with Vision 2030.

These findings were presented at the recently concluded Municipal Investments Forum in Riyadh by Samer Bohsali, a Middle East-based partner in Bain & Company's Public sector practice.

He said municipal investments are pegged to achieve 5 billion riyals ($1.3 billion) to government revenue annually apart from creating 125,000 jobs.

"Investments such as these are key to building competitive cities in Saudi Arabia in support of the goals and objectives of Vision 2030," he added.

Bohsali said municipal investments can support the 35 objectives of Vision 2030 and its six main programmes, namely Privatisation, Housing, Quality of Life, Hajj, National Transformation, and Fiscal Balance.

"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 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."

(Writing by Syed Ameen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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