A new Viewpoint from Arthur D. Little reveals a transformative approach to urban development that could redefine economic trajectories across the Gulf region. The insights challenge traditional infrastructure planning, offering a fresh perspective on how development can become a catalyst for sustainable, community-led growth.

The Viewpoint identifies economic opportunity rooted in community-integrated development, presenting a model where economic progress is driven by local engagement, youth participation, and cultural alignment. Unlike conventional top-down approaches, this model emphasizes a bottom-up strategy, unlocking higher economic value while embedding sustainability and resilience into urban transformation.

According to Rajesh Duneja, Partner at Arthur D. Little, “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.”

At the heart of this shift is a rethinking of urban growth. With urban populations in the Middle East projected to surge by 30% from 2020 to 2030, demand for housing, infrastructure, and inclusive development has never been greater. The Viewpoint suggests that traditional infrastructure models alone cannot meet the scale of this demand. Instead, community-driven strategies offer a more adaptive and inclusive approach, with the potential to create more vibrant and economically viable urban spaces.

Saudi Arabia’s ongoing effort to build 500,000 new housing units serves as a prime example of this approach. While often viewed as a construction initiative, Arthur D. Little reframes it as a broader economic development program. By embedding workforce development, SME support, and local engagement within its framework, the project ensures that each unit represents more than just shelter—it becomes a catalyst for opportunity, education, and long-term economic contribution.

These community-focused strategies are not only enhancing social impact but also driving economic growth. The Viewpoint offers perspectives on how these initiatives could support a 4% GDP growth trajectory for the region, reinforcing its economic resilience in the face of global challenges. By embedding local ecosystems and socio-economic inclusion into development, countries can strengthen their capacity to weather economic shocks.

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

The region’s demographic profile further strengthens the case for a community-driven approach. With only 3% of the population in Saudi Arabia over the age of 65, the Middle East has an unparalleled opportunity to leverage its young, dynamic workforce. By incorporating pathways for youth engagement and cultural alignment, the Viewpoint highlights a clear opportunity to drive long-term economic growth.

This focus on human capital also underscores a broader evolution in development thinking. Rather than treating infrastructure as an isolated objective, Arthur D. Little presents it as a vehicle for community-driven growth. When integrated with local talent, cultural heritage, and SME development, infrastructure projects become engines of socio-economic transformation.

These insights provide a fresh perspective on national strategies like Vision 2030, which aim to future-proof economies through large-scale development. Arthur D. Little’s Viewpoint suggests that such strategies could achieve greater impact by focusing on community-driven initiatives. In this model, infrastructure becomes more than a collection of roads and buildings; it becomes a platform for skills transfer, SME growth, and local employment.

For policymakers, investors, and economic strategists, the implications are clear. Community-integrated development offers a definitive roadmap for the next phase of Middle Eastern economic progress. The shift away from top-down development models toward locally driven frameworks signals a profound change in how the region can achieve sustainable growth, build social cohesion, and drive long-term prosperity.

 Saudi Venture Capital (SVC) has announced an investment in Raed III L.P., an early-stage venture capital fund managed by Raed Ventures.

The fund will target tech and tech-enabled startups across Saudi Arabia and the MENA region, primarily focusing on Seed and Series A stages, emphasizing fintech, enterprise software, and B2B SaaS sectors, predominantly in Saudi Arabia and UAE markets.

Dr. Nabeel Koshak, CEO and board member at SVC, said: “Our investment in the venture capital fund managed by Raed Ventures aligns with our strategy to back private investment funds that focus on Saudi-based startups at different stages of growth. This commitment aims to accelerate the growth of these startups, diversify the national economy, and contribute to the objectives of Saudi Vision 2030.”

Omar Almajdouie, Founding Partner at Raed Ventures, commented: “We are delighted to continue our strategic partnership with SVC as an anchor investor in Raed III, building upon the success of our collaboration in Raed II. Through its commitment to empowering startups and enabling innovation, SVC has been instrumental in driving the Kingdom’s remarkable progress in this sector. Together, we aim to support the growth of promising startups and contribute to the continued development of a thriving ecosystem in Saudi Arabia and beyond.”

SVC is an investment company established in 2018. It is a subsidiary of the SME Bank, part of the National Development Fund. SVC aims to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO through investment in funds and direct investment in startups and SMEs.

أعلنت السعودية للاستثمار الجريء (SVC) عن استثمارها في صندوق رائد الثالث (Raed III L.P.)، وهو صندوق استثمار جريء تديره شركة رائد فنتشرز.

يستهدف الصندوق الاستثمار في الشركات الناشئة  التقنية والمعتمدة على التقنية في المملكة العربية السعودية ومنطقة الشرق الأوسط وشمال أفريقيا، مع التركيز على الشركات في المراحل الأولية التي تشمل مرحلة التأسيس ومرحلة الجولة التمويلية (أ)، واستهداف قطاعات التقنية المالية وبرمجيات الشركات وحلول البرمجيات كخدمة للشركات.

وصرح الدكتور نبيل كوشك، الرئيس التنفيذي وعضو مجلس إدارة SVC: “إن استثمارنا في صندوق الاستثمار الجريء الذي تديره شركة رائد فنتشرز هو استمرار لاستراتيجيتنا في دعم صناديق الاستثمار الخاصة التي تركز على الشركات الناشئة السعودية في مراحل نموها المختلفة. وهذا الالتزام يهدف إلى مساعدة الشركات الناشئة على تحقيق نمو سريع مما يدعم تنويع الاقتصاد الوطني والمساهمة في تحقيق أهداف رؤية السعودية 2030.”

وصرح عمر المجدوعي، الشريك المؤسس لشركة رائد فنتشرز: “يسعدنا أن نواصل شراكتنا الاستراتيجية مع SVC كمستثمر رئيس في صندوق رائد الثالث، مستفيدين من نجاح تعاوننا في صندوق رائد الثاني. وتقوم SVC، من خلال التزامها بتمكين الشركات الناشئة وتشجيع الابتكار، بدور محوري في دفع التقدم الملحوظ الذي تشهده المملكة في هذا القطاع. نهدف معا إلى دعم نمو الشركات الناشئة الواعدة والمساهمة في التطوير المستمر لبيئة أعمال مزدهرة في المملكة العربية السعودية وخارجها.”

الجدير بالذكر، SVC هي شركة استثمارية تأسست عام 2018، وهي تابعة لبنك المنشآت الصغيرة والمتوسطة، أحد البنوك التنموية التابعة لصندوق التنمية الوطني. تهدف الشركة إلى تحفيز واستدامة تمويل الشركات الناشئة والمنشآت الصغيرة والمتوسطة من مرحلة ما قبل التأسيس إلى ما قبل الطرح الأولي للاكتتاب العام عن طريق الاستثمار في الصناديق والاستثمار بالمشاركة في الشركات الناشئة.