Economic Decentralization as an Approach to Activating the Regional Development Program in Saudi Vision 2030: A Proposed Framework
Abstract
This study aims to develop a practical, short-term organizational framework to operationalize the “Regional Development Program” within the objectives of Saudi Vision 2030, thereby strengthening the role of provinces in leading local development and enhancing governmental performance efficiency. The study addresses a central challenge: the limited developmental powers granted to regions under persistent administrative and financial centralization. It seeks to identify the optimal structural model capable of promoting community participation, increasing transparency, improving resource allocation, and generating local employment opportunities.Employing a qualitative descriptive-analytical approach, the study combines a documentary review of relevant regulations and policies with a comparative analysis of public service delivery models, including the traditional bureaucratic approach, private-sector contracting, and partnership arrangements, juxtaposed with the state-owned enterprise (SOE) model. The analysis is further enriched by insights from experts in public administration and urban planning.The findings reveal a consensus that SOEs constitute the most effective structural option for activating regional development over the next five years, based on a proposed ownership model allocating 70% to the government and 30% to public investment through an IPO. The results also underscore the importance of granting regions administrative and financial autonomy to enable them to fulfill their developmental roles effectively. Accordingly, the study recommends pursuing decentralization as a long-term strategic objective, while adopting the “Economic Decentralization” model as a practical, transitional mechanism to achieve immediate outcomes.
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