By Mohamad Yamout, Michael Caracache, Uwe Hörmann, Chahe Dabanjian and Bilal Rammal

Gulf Cooperation Council (GCC) countries are undergoing an unprecedented wave of urban transformation, driven by the urgent need to diversify their economies beyond oil. National strategies - such as Saudi Arabia's Vision 2030, Kuwait's Vision 2035 and Oman's Vision 2040 - place spatial planning at the heart of economic and societal change. These strategies outline a bold vision to redefine urban living, aiming to attract global investment and talents, as a pathway to long-term economic resilience. In Bahrain, Qatar and the United Arab Emirates, a similar transformation approach has been adopted since 2008 albeit with focused urbanisation projects. Across the region, large-scale masterplans aim to make cities more sustainable, inclusive and globally competitive. However, translating these ambitious visions into reality is a complex undertaking, and success will depend on the capacity of cities and delivery teams to bridge the gap between vision and execution.

Catalyzed by the discovery of oil reserves, the GCC region has undergone a remarkable transformation over the past 50 years, shifting from rural societies to urban, modernized economies. Over the last two decades, oil and gas revenues have contributed almost 40 % of GDP in some GCC countries1. However, technological progress and environmental concerns have created a global shift towards renewable energy, encouraging nations to diversify their economies and reshape their long-term development strategies.

Although urban development priorities are contextual to each country, GCC states overall envisage a future where innovative cities, powered by cutting-edge technology and sustainable practices, seamlessly integrate into the cultural and historical fabric of the region. Projections by the United Nations Development Programme5, also point to an increasingly urban future: nearly 85 % of the GCC population is projected to reside in urban areas by 2030. These future development strategies hold great potential as they can serve as a hotbed for experimentation in urban planning and design. They also highlight how urban strategies can influence economic growth.

As their economies diversify and mature, GCC countries are reimagining the role of their cities. National governments have initiated strategic spatial masterplans for major urban development projects, aiming to mitigate the challenges of rapid urbanization – from housing shortages and traffic congestion to environmental degradation. The scale of ambition embedded in these plans stands in sharp contrast with the reality of implementation: a complex process that demands both clear political governance frameworks and robust funding strategies.

Successful urban transformations rely on an early alignment between urban planning and financial strategy, to ensure that investor needs are being addressed, and that projects are not only viable but also profitable. Reducing reliance on public funding and attracting private investors is a challenge, as attracting foreign capital is often constrained by statutory requirements and geopolitical risks. Across the GCC, the realization of masterplans still largely relies on initial investments by public and governmental bodies.

The study outlines nine strategic enablers essential to facilitate the
successful planning and execution of spatial and economic development projects,

These include:

1. Developing Practical Visions: Grounding future designs in historical context while focusing on long-term outcomes through iterative processes.
2. Adopting Global and Local Approaches: Tailoring urban regeneration solutions to local contexts while fulfilling aspirations in an increasingly globalized world.
3. Ensuring Cultural Integration and Preservation: Balancing modern development with heritage preservation to enhance public and investor support.
4. Managing Governance Structures: Evolving governance frameworks to effectively manage and deliver long-term visions.
5. Committing to Long-Term Sustainability: Fostering sustained commitment from all stakeholders to ensure projects are built for the future.
6. Establishing Specialized Centers: Creating agencies that unify design standards and regulations to facilitate urban governance.
7. Attracting Private-Sector Participation: Offering incentives such as tax breaks and streamlined regulatory processes to reduce perceived risks for investors.
8. Strengthening Public-Private Partnerships: Actively designing projects that align with investor needs to ensure compelling cases for involvement.
9. Learning from Global Best Practices: Drawing inspiration from successful urban projects in cities like Dubai and Doha to adapt strategies to the unique context of the GCC.

This comprehensive study, developed in collaboration with Foster + Partners, delves into the complexities of implementing large-scale urban development projects across the GCC. It examines current masterplanning efforts while highlighting key funding, governance, and planning constraints that must be addressed. The report identifies significant opportunities for greater private-sector involvement, emphasizing that successful urban transformations rely on a harmonious blend of public and private investments.

Download the full report to explore the insights in detail.