According to a Saudi Press Agency (SPA) statement, Saudi Arabia’s Crown Prince Mohammed bin Salman announced in early October the creation of a new company to design, develop and build destinations in key sectors of the country’s economy such as retail, tourism and leisure, and housing. The new company, Saudi Downtown Company (SDC), is part of the sovereign wealth fund Public Investment Fund (PIF).
The Vision 2030 plan, whose ultimate goal is to diversify what is the Arab world’s largest economy and reduce its dependence on oil, relies on precisely this sovereign wealth fund, the PIF. In terms of capital, according to a five-year strategy until 2025, this fund aims to double the value of its assets to $1.07 trillion, of which it allocates $40 billion a year to the development of the Saudi economy.
The SDC will now focus on the design, construction and development of central areas and other mixed-use destinations, as well as infrastructure upgrades in 12 cities across the country. Al-Madinah, Al-Khobar, Al-Ahsa, Buraidah, Najran, Jizan, Hail, Al-Baha, Arar, Taif, Dumat Al-Jandal and Tabuk are the selected cities. In these cities, SDC will seek strategic partnerships with private investors to create new business opportunities. It is estimated that the projects will occupy a total of 10 million m2 of land. Their design will be inspired by local culture and traditional Saudi architectural motifs, whilst their operation and functioning will feature state-of-the-art technologies.
The SDC will support projects that contribute to creating new business opportunities in the private sector and new jobs for local citizens. At the same time, it will provide a boost to the localisation of knowledge and expertise needed to help entrepreneurs and companies start or expand their businesses. So, the SDC is born to improve the attractiveness of these 12 cities and produce a positive impact on local economies.
Sources: Construction Week, Alarabiya, The National News. Images: Vision 2030.
