The King Abdullah Financial District (KAFD) will enter an important stage during the coming period, as it is the driving force for Riyadh to become one of the 10 largest economic cities in the world.
This is the important trend announced by His Highness the Crown Prince Mohammed Bin Salman bin Abdulaziz in the context of a comprehensive strategy to develop the city of Riyadh as part of its plans to diversify sources of income and grow the economy after nearly four months.
The importance of the financial center is evident in the fact that it is located in the largest cities of the Kingdom and the Arab region, the most important of which is both politically and economically.
In speaking about the most prominent features of Riyadh’s vision, the Crown Prince explained that cities constitute 85% of the world’s economy, so real development begins with cities, whether in industry or innovation, education, services, tourism and other sectors, adding that global economies are not based on countries but on cities.
His Highness indicated that the city of Riyadh today accounts for nearly 50% of the non-oil economy in the Kingdom, the cost of creating jobs in it is 30% less, and the development of infrastructure and real estate development is 29% less than the rest of the cities of the Kingdom.
Plus, the infrastructure in Riyadh is very impressive because of what The Custodian of the Two Holy Mosques King Salman bin Abdulaziz carried out it for more than 55 years in managing and planning the city of Riyadh.
In addition, the financial center stands out uniquely in the world with its versatility, as the Public Investment Fund intends to transform it into an integrated destination that combines housing, work, and entertainment, making it a competitor to the most prominent global destinations.
Over and above, it is a sustainable architectural masterpiece that reshapes the urban horizon of the capital Riyadh, and a key element in the Kingdom’s 2030 Vision .The Kingdom is making this investment for the pivotal role that the financial center plays as an economic engine for the Kingdom to become the main new destination for money and business in the region.
Since the fund’s acquisition of Kafed, many contracts have been concluded to complete the construction work with a value of more than eight billion riyals.
A remarkable progress has been made that contributed to the start of the partial operation and leasing of spaces and buildings in Kafed, where a number of banks and leasing companies are currently operating.
The interest of the Public Investment Fund has increased in working on new local projects and an increasing amount of 150 billion riyals until 2025.
Economic Advisor Ahmed Al-Shehri said: “The fundamental matter in the strategy and strategic transformation of the Public Investment Fund is to focus on the inside by pumping investments in sectors that require high financial density, and the fund has become a mediator of economic transformation to support the private sector.”
Al-Shehri stressed that the Public Investment Fund has become the mediator for the structural transformation of the Saudi economy, and a number of sectors have been identified and directed to investments.
He pointed out that the fund should focus on investing and financing businesses that lead to an increase in apartments and small units, pointing out that the process of reducing their prices will lead to providing housing for new families at reasonable prices, and enabling these families to form capital for future purchase. What’s more, he said the fund gives an opportunity to build infrastructure, and adjust prices for high demand for standalone housing units.