RIYADH — Minister of Municipal and Rural Affairs and Housing Majed Al-Hoqail said that they have made a map to make 3 of Saudi cities to be among the world's' best cities. Al-Hoqail made these remarks while participating in the second edition of the Municipal Investment Forum "Foras", which kicked off on Tuesday in Riyadh. He added that the ministry is working to encourage investment in Saudi Arabia. The Kingdom is aiming to increase the participation of the private sector from 40% to 65%, and also raise the contribution of small and medium enterprises (SMEs) in GDP. He added that the municipal real estate disposal regulation has made it possible to improve the relationship between the municipal assets and investors by allowing short-term leases. The regulation has also allowed investors to experience new activities and ideas within a period not exceeding 3 months, in addition to reducing the risks on investors by diversifying contracting. Al-Hoqail said that the ministry has reduced the value of bank guarantees from 100% to 25%, in order to help investors in development and construction. This is alongside empowering the investment in some of the lands such as parks. The municipal investments help in achieving the Kingdom's Vision 2030 through several matters, the first of which is improving the quality of services in cities, improving the urban landscape, developing and diversifying the entertainment opportunities that meet the needs of the residents. It also helps in making state-owned assets available to the private sector, develop the activities of different sectors, significantly increasing the contribution of SMEs in work. The municipal investments contribute in 5 programs to achieve Vision 2030's targets, which are: privatization programs; quality of life; serving pilgrims; housing; financial sustainability. Al-Hoqail noted that they are working on improving the service quality in the Baladi platform, and facilitate reaching opportunities. Work is also under way in transforming the contracting sector into industrial sector. He said that 60% of the economic activities are affected directly and indirectly by the municipal sector. The ministry aims to make Riyadh, Jeddah, Al-Sharqiya and a number of cities in NEOM of economic value and self-reliant. The ministry has offered 37,000 investment opportunities worth SR7 billion, he said, adding that the ministry has 66,000 investors. It is noteworthy that the ministry has signed on Tuesday a smart cities agreement with South Korea.
