Saudi Arabia has experienced a steady urban population growth of over 2% annually in the last decade, mirroring global urbanisation trends. This expansion presents significant challenges, as the rapid increase in residents and visitors strains infrastructure, exacerbates traffic congestion, and raises environmental concerns. These pressures threaten economic productivity, diminish quality of life, and deepen the ecological footprint of Saudi cities.
In response, the Saudi government launched Vision 2030, the world’s largest socio-economic transformation plan. This blueprint outlines the government’s ambitions to develop smart, sustainable cities that are both eco-friendly and economically viable. A cornerstone of this plan is NEOM, a flagship project reflecting Saudi Arabia’s aspiration to become a global hub for innovation, with investments projected to exceed USD 500 billion. NEOM is designed as a smart city leveraging artificial intelligence (AI) to modernise urban services and infrastructure, aiming to reduce energy consumption by 50% and enable sustainable living.
Transportation reforms are also central to the government’s vision. Recent initiatives have promoted the use of public transportation and set a target for 30% of automobiles in Riyadh to be electric by 2030, reducing pollution and easing traffic. The King Abdulaziz Public Transport Project, which includes an integrated bus and metro system in Riyadh, exemplifies the push towards efficient and environmentally sustainable mobility solutions.
Key organisations such as the National Digitization Unit and the Saudi Smart Cities Company are playing vital roles in these initiatives. The Saudi Smart Cities Company integrates digital infrastructure and smart technology into urban environments, supporting projects like NEOM, where AI and the Internet of Things (IoT) manage resources from traffic flow, to energy consumption. The National Digitization Unit ensures that regulatory frameworks are in place to support the digital aspects of initiatives like Green Riyadh and NEOM, which are integral to the Kingdom’s broader digital transformation strategy.
Green Riyadh, for example, aims to plant 7.5 million trees, enhancing the city’s green spaces and reducing heat. Smart environmental monitoring systems, overseen by the Saudi Smart Cities Company, ensure that the project aligns with sustainability goals. Additionally, the National Digitization Unit facilitates the integration of digital systems that bolster Saudi Arabia’s drive for eco-friendly urbanisation.
The Saudi Data & AI Authority (SDAIA) also plays a crucial role in promoting sustainable development. Through various AI-driven initiatives, SDAIA enhances environmental standards, ensuring that resource management is sustainable for future generations and advancing Saudi Arabia’s vision of smart, sustainable living. These include using AI for climate change mitigation, real-time environmental monitoring, and promoting efficient resource management in water and energy. SDAIA also supports smart city projects like NEOM by integrating AI to optimise urban infrastructure, and it encourages the circular economy through data analysis to reduce waste and boost recycling. Additionally, SDAIA collaborates with global partners to leverage AI for biodiversity conservation and sustainable development, aligning with the Kingdom’s Vision 2030 goals.
For businesses and investors, Saudi Arabia’s smart city revolution offers significant opportunities, particularly in Foreign Direct Investment (FDI). The government’s emphasis on private sector participation in smart technologies, renewable energy projects, and urban infrastructure creates a fertile ground for lucrative ventures.
In essence, Saudi Arabia’s strategy to develop smart cities addresses the immediate challenges of urbanisation while fostering an innovative, business-friendly environment. The Kingdom’s transition to sustainable, connected urban landscapes not only advances national priorities but also sets a global benchmark for smart city development, paving the way for future innovations in the field.
