Ecuaran: The big costs of the Saudi government’s engineer have been expanded, but some areas say the capital has devoured the resources of the rest of the country with its rapid growth.
When Abdul Rahman ends in a stylish cafe in the city of Abi, he often rides his motorcycle and moves towards the cooler air of the mountain.
The highways from this southern city of Saudi Arabia – the capital of Asir province – are the dream of any motorcyclist; The winding roads that go up to the highest point of the monarchy and stunning the Soodeh Mountains in front of the travelers. Its cliffs are covered with dense forests of cedar trees that live in groups of Baboons. Beyond these mountains is the historic village of “Rijal al -Alam”; A 5 -year -old settlement with gingerbread stone houses.
But in the past two years, the landscapes of the Soode Mountain have been damaged by the tall metal fences that have been drawn along the highway. “It is annoying,” says Abdul Rahman. People like to go to the summit. ” However, the same annoyance is a great promise: Soode Pix’s multi -billion -dollar tourism project, which is set to attract two million visitors annually. “We are waiting for the opening of these projects, not only to attract tourists, but also to bring other investments,” says Abdul Rahman.
The rich cities and the deprived areas of Saudi Arabia
Like many rural areas, Asir failed to attract the central government for decades. But today the province – which has the highest unemployment rate in Saudi Arabia – is a key part of the crown programs for Tourism Development, and somehow measuring whether its transformation plans will reach low and low -income areas.
“What we see in Asir is a real test for government slogans; That all parts of the country will benefit from their relative advantage. But the question is: Is this the fact that it is only the glittering words to cover the fact that all opportunities are focused on Riyadh and Neomal? ” Since the beginning of the “Vision 2” in year 2, much of the country’s large investment has been dedicated to the capital, the traditional center of power of the Saudi clan, or the Neomal project in the northwest.
The crown prince’s goal is to make Riyadh one of the “top five economies in the world”. In recent years, the city has risen unprecedented by foreign companies and Saudi citizens looking for high -income jobs. But while the capital has witnessed the opening of luxury restaurants and new entertainment, experts have warned that there is a sense of marginalization and disregard for other areas.
“In other parts of the country there is less excitement and opportunities are less,” says Sanam Lawyer, director of the Middle East. These conditions have made some feel that they are lagging, this process has already begun. If the outlook is to really lead to the economic and social change of the monarchy, it cannot leave parts of the population; Everyone has to go along this path. “
Different challenges of Saudi Arabia
Saudi Arabia is not the only Gulf country trying to separate its economy from oil, but it is facing unique problems. With an area of ۱.۵ million square kilometers, it has a population of more than the UAE, Kuwait, Qatar, Oman and Bahrain. For this reason, its resources are dedicated to more needs and must deal with issues such as unemployment, poverty and inequality; Issues that are not so serious in the smaller and richer countries of the Persian Gulf.
For decades, the Saudi authoritarian royal system was based on a “cradle to grave” welfare system: government jobs and numerous subsidies for Saudi citizens, while more than 5 million immigrant workers had low -income jobs. This widespread dependence on the government tied the economy to oil prices fluctuations.
But the goal of Mohammed bin Salman is to reduce this dependence, create new industries and transfer citizens’ reliance from the government to the private sector. The government now speaks of some significant successes: including widespread social reform that has transformed the mentality of society. The rate of women’s participation in the labor force has risen from about 2 % in the past decade to 2 % in the first quarter; The factor that has lowered the unemployment rate to a historic level and increased household income. Also, new sectors such as entertainment and tourism have created thousands of private jobs and have reinforced non -oil growth.
Average household income in different provinces of Saudi Arabia
Deep gap between Riyadh and other provinces
However, the differences are still significant. According to a government poll in year 2, the monthly income of a household in Riyadh was an average of 4,000 rials ($ 4.9); More than twice the household income in the small province of Najran in the east of Asir. Unemployment follows the same pattern: the unemployment rate in the capital is about half the national average.
Saudi officials say they are aware of the possible dangers of the gap, but insist that it is natural to be the center of economic activity and employment. The Minister of Economy, Faisal al -Abraham, says the country “has no meaningful geographical difference in human capital” and the main problem is “unbalanced growth”. According to him, “Disputes are normal during the transition period. The important thing is to figure out what is behind it: Is it temporary or is there a deeper pattern? “
However, a government adviser says, “All the provincial governors ask why all the benefits come to Riyadh?” Even in Jeddah, Saudi Arabia’s second largest city and business center has been criticized for transferring institutions such as the Saudi National Bank and the Civil Aviation Authority to Riyadh and spending huge costs for superconductors. “Instead of building Neum, they have to repair the Jeddah roads,” says one resident of Jeddah. In some areas there is still no sewage and water network. “
The government has allocated at least $ 5 billion for various projects in Jeddah, including the reconstruction of the old city and the development of downtown. But this figure seems to be insignificant against the large budgets of Riyadh and Neum. Many Jeddah youths also search for better job opportunities to Riyadh. “If you want to do a national level and reach the peak, you have to go to Riyadh; Opportunities are there. “
Sawda; A serious benchmark for the future of the outlook
Computer images of the Soodex project show that the area is set to become a luxury set with stunning mountain scenery, designed gardens and eye -catching pools. The development of this area is a decisive test on whether the Crown Prince’s programs can also overflow to deprived and low -income areas.
More than 5 % of the Saudi population is under the age of 5. Many Saudi youths have excitedly excited the new dynamics of Riyadh, and those who are heartbroken by the Crown Prince are willing to feel in this direction. According to a young Saudi: “The subject is not just Jeddah; “People across the country want to be part of something bigger.”
But many others, especially in rural areas, migrate to Riyadh only because of the economic necessity. “Everyone is going,” says a 5 -year -old Aber driver from the Aflaj area – about 2 kilometers south of the capital. There is no good job in our area. ” But after entering the capital, he realized that “everything is expensive”.
A Saudi analyst warns that the main concern is Riyadh itself: “We are witnessing the widespread wave of internal migration to Riyadh, which has put a lot of pressure on housing. It is as if this city is a country different from the rest of the cities; Whether in terms of trading volume and rent rates. ” Over the past five years, about 6,000 Saudis have moved to Riyadh. This migration, along with the entry of foreigners, has increased rentals by between 5 % and 5 %.
“We want people to look for more valuable jobs in the private sector, no matter where it is,” the Minister of Economy, Faisal al -Abrahim, says. The subordinate consequences are what we look at. ” But the Saudi analyst warns that the main risk is the growth of urban poverty; Because many are going to an expensive city for low -income jobs, the country’s traditional social contract is changing. Governmental subsidies of electricity, water and fuel declined, value added tax was applied in year 2 and tripled during the Corona era. The retirement age has increased from 1 to 5 years, with programs to shrink the administrative swollen body.
The government does not publish the official statistics of poverty, but the report of the UN Economic and Social Commission for West Asia, published two years ago, showed that one out of every five Saudis is still affected by poverty decline; On the basis of a threshold of 1.5 Saudi riyals ($ 1,440) per household per month.
Saudi officials refer to the “Citizenship Account” program, which began in year 6 to support low -income families. But experts say welfare reforms have still been shocking for many. “It is difficult for the generation to realize that there is no more government jobs in their areas,” explains a Saudi analyst. Perhaps this is the reason for their migration to Riyadh to work in cafes or stores; What was unimaginable five years ago. “
Hoping for government investments
In the province of Asir, the birthplace of Abdul Rahman and the other 5 million, at the same time as social reform, there are signs of change. Women are still masked in the face, but driving and seen in modern cafes and shopping malls. Saudi youth work in the city as a Barista, a waiter or a taxi driver, and men with shorts walk in the streets covered by Jakanda trees; The scenes that were considered a taboo a decade ago.
However, the main hope of the authorities and the people is tied to government projects; Projects that all rely on the Public Investment Fund (PIF), a fund that Crown Prince Mohammed bin Salman has drove the engine of its development plans. “The government has pledged 2 billion riyals for the province, of which 2 billion is from the public investment fund,” says Prince Turki bin Talal, the governor of Asir. “Now a similar effort must be made by the private sector.”
Provincial officials say Asir has the highest focus of public investment fund projects outside Riyadh: three large projects and one fund -backed investment company. In the water there are two massive projects underway; A large entertainment complex and an extensive residential, commercial and tourism project. The flagship of these designs is the project of Soode Pix; A superb collection with rocky hotels, mansions, villas, golf courses and luxurious camping places. “The goal is to turn Soode Pix to Saudi Arabia,” the Turkish prince says.
Like many other fund projects, the project was delayed. The first phase was supposed to be completed in year 2, but its construction has not yet begun. The Turkish prince says the problems will be resolved and the work will begin soon. In the past, he had complained about the difficulty of attracting specialist forces to work in Asir and the focus of the fund’s offices in Riyadh, but now he says that has been resolved. He is satisfied with the government’s support for the development of Abbas Airport, the construction of a highway to the beach, the construction of hospitals, the university and the increase in the city’s water resources.
Look at the future
However, the Turkish prince is still concerned about the youth skill and migration gap – Asir had the highest population exit rate among the provinces in the year. However, he believes that the trends are in reversal and that the unemployment rate is now 5 % to 3.7 percent now.
“Over time, these government projects will create economic growth and employment,” he says. But a similar attempt should be made in the private sector. The public sector will no longer grow, so what to do? You have to go to the private sector. ” There are signs of the entry of private investment. A Saudi company in Abi is implementing a commercial-commercial complex project with the participation of the State Tourism Fund. The US company Ak Group also plans to build a $ 5 million luxury hotel in the Soode Mountains.
But it is still these public investment fund projects that will determine the fate of tourism in Asir. This fact shows that despite all the slogans about the private sector, the driving engine of development is still the government. Under the Crown Prince, the Public Investment Fund has become the dominant economy force and spent hundreds of billions of dollars on huge projects. But the fund is now under pressure to ensure the return on investment and focus on projects with specific deadlines, while many other designs are limited or backward.
However, the prince is an optimistic Turkish that Asir is not the victim of such a process, as the Crown Prince personally chairs the Soode Development Company and has appointed Abbas as one of the host cities of the FIFA World Cup. “The Crown Prince High, he insisted that Asir is a key point for development in Saudi Arabia,” he says. However, it warns that the main challenge is to “not be too promised and do less.” The inhabitants of Asir are also waiting for promises. “We do not know what will happen, but we trust the government will not do a bad job,” says Abdul Rahman.
Source: Financial Times
