Non-Oil GDP Share: 76% ▲ -7.7pp vs 2020 | Saudi Unemployment: 3.5% ▲ -0.5pp vs 2023 | PIF AUM: $941.3B ▲ +$345B vs 2022 | Inbound FDI: $21.3B ▼ -6.4% vs 2023 | Female Participation: 33% ▲ -1.1pp vs 2023 | Credit Rating: Aa3/A+ ▲ Moody's / Fitch | GDP Growth: 2.0% ▲ +1.5pp vs 2023 | Umrah Pilgrims: 16.92M ▲ vs 11.3M target | Non-Oil GDP Share: 76% ▲ -7.7pp vs 2020 | Saudi Unemployment: 3.5% ▲ -0.5pp vs 2023 | PIF AUM: $941.3B ▲ +$345B vs 2022 | Inbound FDI: $21.3B ▼ -6.4% vs 2023 | Female Participation: 33% ▲ -1.1pp vs 2023 | Credit Rating: Aa3/A+ ▲ Moody's / Fitch | GDP Growth: 2.0% ▲ +1.5pp vs 2023 | Umrah Pilgrims: 16.92M ▲ vs 11.3M target |

Overall Rating: B

For full strategic analysis, see the cities and environment priority. Related coverage: NEOM, environmental sustainability, benchmark comparisons.

KPI Dashboard

KPIBaselineTarget 2030LatestStatus
Smart city projects initiated075On Track
Urban green space per capita (sqm)3.5106.1On Track
Air quality index compliance (days/year)180300238On Track
Waste recycling rate5%40%17%At Risk
Public transport ridership (M annual)45M300M142MOn Track
Municipal service satisfaction55%85%72%On Track

Progress Assessment

Cities and urban environment is a priority area where ambitious vision meets the complex reality of physical infrastructure delivery at massive scale. The B rating reflects meaningful progress in smart city development, urban planning reform, and transport infrastructure, while acknowledging that several environmental KPIs face significant gaps to their 2030 targets. Five major smart city initiatives are underway, including NEOM, the Riyadh Metro and broader Riyadh strategic development, Jeddah Central, King Salman Park, and the New Murabba project.

The Riyadh Metro, one of the world’s largest urban transit projects, has begun phased operations and represents a transformational shift in Saudi urban mobility. When fully operational, the six-line system with 85 stations will serve the capital’s growing population and directly support public transport ridership targets. Jeddah is similarly advancing its urban transformation through the Jeddah Central waterfront development and transport network upgrades. Urban green space per capita has nearly doubled from 3.5 to 6.1 square metres, supported by King Salman Park, the Green Riyadh initiative targeting 7.5 million trees, and municipal greening programmes.

The waste recycling rate is the most challenging KPI in this priority, at 17 percent against a 40 percent target. Establishing recycling infrastructure, changing consumer behaviour, and building industrial capacity for waste processing are inherently slow processes. Air quality compliance has improved from 180 to 238 qualifying days, supported by emissions standards, industrial regulation, and vehicle fleet modernisation, but reaching 300 days will require continued effort on industrial emissions and dust management in an arid environment.

Key Achievements

  • Five major smart city projects initiated across the Kingdom
  • Riyadh Metro launched, one of the world’s largest urban rail projects with 6 lines and 85 stations
  • Urban green space per capita increased from 3.5 to 6.1 square metres
  • Green Riyadh initiative targeting 7.5 million trees across the capital
  • King Salman Park creating 13 square kilometres of urban green space in central Riyadh
  • New Murabba project establishing a new downtown Riyadh with The Mukaab landmark
  • Jeddah Central waterfront development transforming 5.7 million square metres of coastal land
  • Air quality compliance days increased from 180 to 238 annually
  • Public transport ridership tripled from 45M to 142M annual trips
  • Municipal digital services platforms improving citizen interaction and satisfaction
  • NEOM Phase 1 infrastructure development progressing in Tabuk Province
  • Smart traffic management systems deployed across major cities

Risks and Challenges

  • Waste recycling rate at 17% against 40% target is the widest gap in this priority area
  • NEOM delivery timeline and scope adjustments creating uncertainty about full vision realisation
  • Urban sprawl management difficult amid rapid population growth in Riyadh and Jeddah
  • Water scarcity and desalination dependency constraining urban green space sustainability
  • Air quality improvements limited by natural dust conditions and continued industrial emissions
  • Riyadh Metro full operational integration and ridership adoption still ramping up
  • Construction-phase disruption in multiple cities undergoing simultaneous mega-projects
  • Heat island effects intensifying in expanding urban areas
  • Municipal governance capacity strained by pace and scale of urban transformation
  • Funding sustainability for smart city operations beyond initial capital investment phase

Outlook

The cities and environment priority is at an inflection point where major infrastructure investments are transitioning from construction to operation. The Riyadh Metro becoming fully operational will be the single most impactful development for public transport ridership targets. NEOM Phase 1 delivery milestones over the next two to three years will determine confidence in the smart city development trajectory. Green space and air quality improvements are progressing steadily and should continue their positive trends.

The waste recycling target is unlikely to be fully achieved by 2030, with a more realistic outcome in the 22 to 28 percent range. This KPI reflects a genuine structural challenge that most emerging economies face when building recycling systems from a low base. An upgrade to B+ would require the waste recycling rate to cross 25 percent, Riyadh Metro ridership to reach 100 million annual trips, and NEOM to demonstrate meaningful Phase 1 operational milestones.