Urban populations across the Middle East are expected to grow by 30% between 2020 and 2030, fueling unprecedented demand for housing, infrastructure, and inclusive development, according to a new report by Arthur D. Little.
The report highlights the need for community-driven strategies, suggesting that traditional infrastructure models alone cannot accommodate this surge. It points to a $150 billion economic opportunity through community-integrated development, emphasizing local engagement, youth participation, and cultural alignment as key drivers of economic progress.
Unlike conventional top-down models, the proposed approach focuses on bottom-up development, fostering sustainability and resilience while unlocking greater economic value.
“This shift goes beyond city-building,” said Rajesh Duneja, lead researcher at Arthur D. Little. “It’s about creating economic ecosystems that grow from within local communities.”
Saudi Arabia’s initiative to construct 500,000 new housing units exemplifies this model, embedding workforce development, SME support, and local engagement to ensure each unit serves as more than just housing—it becomes a catalyst for education, opportunity, and long-term economic growth.
The report also suggests these initiatives could bolster GDP growth by 4%, enhancing the region’s economic resilience against global uncertainties.
Maurice Salem, Principal at Arthur D. Little Middle East, described this trend as “the emergence of a new economic blueprint that places human potential at its core.”
With only 3% of Saudi Arabia’s population over 65, the report notes the region’s youthful demographic presents a unique opportunity for sustained economic expansion, driven by youth engagement and cultural alignment.
