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The concept of smart cities is becoming a cornerstone of global urban development. In particular, the Gulf Cooperation Council (GCC) countries—Saudi Arabia, the United Arab Emirates (UAE), Qatar, Bahrain, Kuwait, and Oman—are rapidly adopting smart city technologies to improve urban living. 

In 2017, the crown prince of Saudi Arabia, Mohammad bin Salman, announced an ambitious $500 billion megacity project called Neom. However, large-scale smart city projects are not limited to Saudi Arabia; they have expanded across the Gulf. Fueled by advanced technologies, these projects present the potential for both opportunities for urban governance and the risk of repression through increased surveillance. 

A Growing Trend

These smart cities leverage advanced technology, such as Artificial intelligence, automation, and more, to improve society’s living standards by facilitating solutions to improve service delivery, security, building maintenance, and more. Looking at the potential of these cities, mass-scale migrations have already begun around the globe, thus making these cities important for the global economy and the environment. According to The World Bank estimates that by 2025, seven out of ten people will live in one of these cities. Moreover, these cities are estimated to generate 80% of the global GDP. 

Key Drivers Behind Smart City Investments

According to the United Nations Development Programme, based on the World Bank indicator, the region’s urbanised population is growing at a rate of 3.1%. Cities like Dubai, Riyadh, and Doha are witnessing even faster growth. As cities become more densely populated, the need for efficient, sustainable urban management has become paramount.

The region faces significant environmental challenges, including water scarcity, high energy consumption, and harsh climatic conditions. Smart city technologies solve these problems by optimising resources and reducing waste.

Many GCC nations rely heavily on oil revenues, a finite resource. Smart cities, driven by technology and innovation, are part of broader economic diversification strategies, such as Saudi Arabia’s Vision 2030 and UAE’s Vision 2021, which aim to create knowledge-based economies.

Promise For Services & Sustainability

Smart cities hold the potential for improving efficiency in every aspect of municipal governance right from waste management to public safety. According to the study done by Mckinsey and Co., technology reduces the crime rate by 30% and accidents by 8%.

Further, these cities also hold the potential to reduce the carbon footprint of the GCC nations, which remains a primary concern for the Gulf. According to the MDPI, in 2021, the GCC contributed 2.4% of the greenhouse gases, with only 0.61% of the world population. 

The Social and Economic Impact

The rise of smart cities in the GCC is expected to have a transformative impact on the region’s economy and society. Smart cities will attract foreign direct investment (FDI) by creating business-friendly environments driven by cutting-edge technology and infrastructure. According to KPMG, smart city spending could grow from $81 billion to $158 billion in 2022. 

New job opportunities in the technology, construction, and innovation sectors will emerge as smart cities develop. The growth of tech hubs and research centers in cities like Dubai Internet City and NEOM’s innovation zone will provide local talent and opportunities for expatriates.

Smart city technologies are crucial in reducing the region’s carbon footprint. By adopting renewable energy sources, implementing smart grids, and promoting energy-efficient buildings, GCC cities contribute to global efforts to combat climate change.

Risk For Repression

Most of the technology used by these smart cities is exported from China, which, according to the Middle East Institute, has become an integral partner in these major technologies. This raises concerns about spreading Chinese technologies in Gulf nations. Moreover, this technology gives the leaders of these authoritarian governments access to vast amounts of personal data, such as location and more. 

The Gulf leaders can use this information to target specific groups of protestants and more, like other autocratic governments that favoured Chinese technology. For instance, as per the Wall Street Journal, Iran’s surveillance capabilities doubled in 2022 and were used for targeting specific groups of protestants asking for democracy. 

Future Of GCC Smart Cities 

The rise of smart cities in the GCC is reshaping the region’s urban landscape, positioning it as a global leader in innovation and sustainability. As these countries continue to invest in smart technologies, they are enhancing urban living for their residents and setting a benchmark for future city development globally. 

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Shubham Goyal
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