Saudi Arabia will soon announce a new development strategy for capital Riyadh as part of its efforts to expand economic diversification through urban centres, Saudi Crown Prince Mohammed bin Salman said on Thursday.

''All of Riyadh's features set the groundwork for job creation, economic growth, investment, and many more opportunities,'' he said in a conversation with Senator Matteo Renzi, Former Prime Minister of Italy and member of the Board of Trustees of the FII Institute at the Fourth Edition of the Future Investment Initiative.

''We are therefore aiming to make Riyadh one of the ten largest city economies in the world - today it is ranked at among the top 40 city economies worldwide,'' he said.

With cities representing 85 percent of global economy, ''true growth begins in the city, whether in terms of industry, innovation, education, services, or other sectors,'' the Crown Prince said. ''I have no doubt that the world economies are not based on nations, but on cities.''

Prince Mohammed said the plan is increase Riyadh's residents from 7.5 million today to around 15-20 million by 2030. He said Riyadh currently accounts for 30 percent of the Saudi population, about 50 percent of the Kingdom's non-oil economy and its cost of job creation is 30 percent less than the other cities of the Kingdom.

"The cost of developing infrastructure and real estate [in Riyadh] is also 29 percent less than the other cities, while the infrastructure in Riyadh is already quite outstanding because of the sound management and planning performed by King Salman over a period of 55 years and more,'' he said.

Over the period, Riyadh grew from a city of 150,000 residents into a metropolis of 7.5 million people, he noted.

"When it comes to population in Saudi Arabia, we focus on two main cities, Riyadh and Neom. In the rest of the cities, we focus on improving the services, the quality of life, seizing the opportunities in tourism, natural resources and other opportunities," the Crown Prince said.

"The large population of Riyadh will create demand for better healthcare, education and other services. We will focus on creating this strong demand so that we can create the matching supply."

He underlined that Riyadh presents a "huge opportunity to create tremendous economic growth in Saudi Arabia," and to develop industry and tourism.

Prince Mohammed said the government is also preparing strategies for the Kingdom's regions and some of its cities.

"We are also working on a strategy for Makkah, a strategy for the Eastern Region, and the region of Asir. The other regions' strategies are underway based on the opportunities they possess," he said.

(Writing by Saket S; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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