According to analysts, the Gulf Cooperation Council (GCC) region’s urban populations are expected to increase by 30% between 2020 and 2030, which will raise demand for inclusive development, housing, and infrastructure.
A recent report by the global management consulting firm Arthur D. Little revealed that, by 2050, 90% of Gulf Cooperation Council citizens will reside in urban areas. The Kingdom of Saudi Arabia is spearheading this shift and plans to construct 500,000 new homes to accommodate the growing demand.
A dozen massive projects are being undertaken by Saudi Arabia to meet the demands of its expanding urban population. As a fundamental element of “Vision 2030” economic diversification agenda, these advancements are essential to the government’s objectives for economic diversification.
“We’re witnessing a paradigm shift. This isn’t about building cities — it’s about creating living, breathing economic ecosystems that grow from within local communities,” Rajesh Duneja, partner at Arthur D. Little said.
Saudi Arabia’s “Quality of Life Programme” and “Vision 2030 goals” are driving the country’s efforts to rank three of its cities among the top 100 liveable cities worldwide, stated the consulting firm, as it noted the Kingdom taking efforts to integrate workforce development, small and medium-sized businesses, and local engagement into its ongoing initiatives, which go beyond simple construction projects to catalyse opportunity, education, and long-term economic contribution.
According to a report published in December 2024 by the real estate and investment management company JLL, Saudi Arabia’s continuous city infrastructure development is generating new growth hotspots due to an increase in tourism and attempts at economic diversification.
The Kingdom’s capital, Riyadh, is expected to rank among the world’s fastest-growing metropolises over the next ten years, according to a July analysis by British real estate firm Savills. This growth will be fuelled by the expansion of the nation’s megaprojects.
Kuwait will already have a 100% urban population by 2023, according to a July Statista report that detailed the progress of urbanisation in Arab countries.
In Qatar, 99% of people live in urban areas, according to Statista. Bahrain, the United Arab Emirates, and Saudi Arabia follow with 89%, 87%, and 84%, respectively.