According to the Saudi Press Agency, Saudi Downtown Company (SDC), which aims to construct and develop downtown areas and mixed-use destinations in 12 cities across Saudi Arabia, was officially launched by HH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Chairman of the Public Investment Fund (PIF).
By generating new business and investment opportunities in significant economic areas like retail, tourism, entertainment, and housing, the organisation will seek to enhance the infrastructure and develop strategic alliances with the private sector and investors. Al-Madinah, Al-Khobar, Al-Ahsa, Buraidah, Najran, Jizan, Hail, Al-Baha, Arar, Taif, Dumat Al-Jandal, and Tabuk are among the twelve cities. Across all projects, SDC will develop more than 10 million square metres of land, creating contemporary destinations influenced by traditional architectural styles and the rich local culture of Saudi Arabia while utilising cutting-edge technology in each one.
The Public Investment Fund, the nation’s sovereign wealth fund, intends to expand business and investment possibilities in various Saudi Arabian localities. The initiatives will contribute to the creation of employment opportunities for locals and the localization of knowledge and experience to support entrepreneurs in starting and growing their firms. According to PIF’s five-year plan, the wealth fund will invest at least $40 billion annually in domestic projects and investments, make a cumulative $320 billion contribution to non-oil GDP through its portfolio companies, increase assets under management to over $1.07 trillion, and generate 1.8 million direct and indirect jobs by the end of 2025.
As part of its main domestic strategy, PIF will concentrate on the following 13 industries: healthcare, utilities, renewable energy, telecom, media, technology, food and agriculture, automotive, transport and logistics, real estate, and aerospace and military. Saudi Arabia, the largest oil exporter in the world, posted a $21 billion budget surplus during the second quarter, propelling it to become the Group of 20 country with the fastest-growing economy this year.
By establishing SDC, PIF hopes to expand trade and investment possibilities in a number of Saudi Arabian cities, so boosting their allure and having a favourable effect on their regional economies. The initiatives will also help local residents find new employment possibilities and private sector chances, as well as localise knowledge and expertise to support entrepreneurs and firms as they launch and grow. The establishment of SDC is in line with HRH the Crown Prince’s intention to start development initiatives in various Saudi Arabian provinces, underlining the significant contribution that local cities provide to the country’s economy. The business’s approach is consistent with PIF’s efforts to develop promising local industries’ potential so they may promote economic diversification and non-oil GDP growth, in line with Vision 2030’s goals.
