Place communities and culture at the core of urban area development

23 January 2025 Consultancy-me.com

Between 2020 and the end of this decade, the urban population of the GCC region will have surged by 30%. In light of this rapid urbanization, a new study from Arthur D. Little points at the importance of placing communities and culture at the core of urban area development.

The Middle East, in particular the GCC region, has enjoyed rapid growth in recent years, even as economic shocks and geopolitical instability has rattled the world. With that growing prosperity comes rapid urbanization: by 2050, a total of 90% of all GCC residents are expected to be concentrated in cities.

The overall population of the six GCC nations was around 57.6 million in 2023, marking a 7% increase from the previous year. With around half of the total population of the GCC being under the age of 25, these populations are among the youngest in the world.

Giga projects

Saudi Arabia really exemplifies these trends, with only 3% of the country’s population over the age of 65. In order to address their expanding population, Saudi officials have embarked on plans to build 500,000 additional housing units, a figure equal to around 8% of the current total housing stock.

Place communities and culture at the core of urban area development

Much of this additional housing will be in giga projects, like NEOM, which is a planned region envisioned as a hub for innovation and sustainable development. It is slated to feature futuristic urban development, advanced technologies, and a focus on renewable energy. Another major development project is the Red Sea Project, which is on Saudi Arabia’s west coast.

Central in Saudi Arabia’s bold plans is the recognition that rapid development and urbanization are coupled with citizen well-being, community development and the preservation of cultural identity and heritage.

“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,” comments Rajesh Duneja, a partner at Arthur D. Little.

A focus on community

With the level of growth in population and the rate of urbanization, traditional infrastructure models alone will not be enough to meet the scale of the demand, the Arthur D. Little study notes. This is where community-driven strategies come in.

What that means in practical terms is engaging communities across all stages of the real estate development lifecycle, from regulation to post-completion operations.

Community advisory panels can help to tailor regulations to unique local contexts and ultimately support sustainable practices and community welfare. Following that, communities would be involved in planning and design, using local materials and suppliers, when available.

Management would also be community-focused, with safety committees ensuring long-term sustainability, for example. This would help to keep the projects on course and residents engaged.

“This is not just urban development. It’s the emergence of a new economic blueprint that places human potential at its core,” says Maurice Salem, a principal at Arthur D. Little.

The study notes that in the future development of urban areas in the GCC region, some the most important factors to keep sight of include preserving cultural heritage while embracing modernization, community-led initiatives, supporting local talent, and engaging youth in development processes.

“By focusing on these areas, the region can create sustainable, inclusive communities that reflect local aspirations while achieving its development goals. Effective community engagement fosters trust and strong relationships, leading to positive outcomes for both organizations and communities,” concludes Duneja.

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