The Dilemma of saudi Municipal Finance

THE DILEMMA OF SAUDI MUNICIPAL FINANCE AND SUSTAINABLE URBAN ENVIRONMENTS ABDULKARIM K. ALHOWAISH Department of Urban and Regional Planning, Imam Abdulrahman Bin Faisal University, Dammam, KSA – P.O. Box 1982, Dammam 31441, Kingdom of Saudi Arabia. E-mail- ahowaish@iau.edu.sa Abstract - The future of Saudi municipal finance is set to evolve significantly as the Kingdom progresses with its Vision 2030 objectives, which emphasize economic diversification and reduced dependency on oil revenues. Municipalities are likely to gain greater financial autonomy through the diversification of revenue sources, including local taxes, public-private partnerships, and real estate development. Fiscal decentralization, digital transformation, and smart city initiatives will play key roles in enhancing financial management and service delivery. Additionally, the integration of sustainability through green finance and the issuance of municipal bonds is expected to grow. To support these changes, capacity building, legislative reforms, and community engagement will be critical in ensuring effective and transparent municipal financial management.This research paper explores the evolving landscape of Saudi municipal finance, focusing on innovative funding mechanisms, the integration of sustainability into fiscal policies, and the increasing reliance on digital platforms for revenue generation and transparency. By leveraging technology and fostering collaboration across sectors, the future of Saudi municipal finance will be defined by its ability to create equitable, sustainable, and financially sound urban environments. Keywords - Municipal Finance, Revenue Sources, Funding Mechanisms, Sustainability, Urban Environments, Urban Development, Saudi Arabia. efforts to modernize its cities, improve public services, and achieve the goals of Vision 2030.[5] It supports infrastructure development, public service delivery, and economic diversification, while also addressing challenges related to financial sustainability, transparency, rapid urbanization, and urban planning. [6]As Saudi Arabia continues to modernize and develop its cities, effective municipal finance will be essential for achieving sustainable and inclusive growth, ensuring that the benefits of development reach all segments of society. Thus, this research paper is set to explore the evolving landscape of Saudi municipal finance, focusing on innovative funding mechanisms, the integration of sustainability into fiscal policies, and the increasing reliance on digital platforms for revenue generation and transparency. By leveraging technology and fostering collaboration across sectors, the future of Saudi municipal finance will be defined by its ability to create equitable, sustainable, and financially sound urban environments. Following the introduction, the remainder of the paper is structured as follows. Section 2 presents a brief review of the theoretical and empirical analyses of the financial aspects of municipalities worldwide in the existing literature. Section 3 presents the existing landscape of Saudi municipal characteristics. Section 4 presents valuable policy recommendations that can be adopted by policymakers to develop effective plans and financially sound Saudi urban environments. I. INTRODUCTION Municipal Finance refers to the management of a municipality's revenue, expenditures, and debt obligations.[1] It encompasses the financial operations of local governments, including cities, towns, and counties, and plays a critical role in ensuring the provision of public services such as infrastructure, education, public safety, and sanitation. Municipal finance is essential for maintaining and improving the quality of life in local communities. It ensures that essential services are funded, infrastructure is maintained, and that municipalities can adapt to changing economic conditions. In fact, municipal finance can be described as the backbone of local governance and development. [2 & 3] It ensures that municipalities can meet the needs of their residents, plan for the future, and contribute to the broader economic, social, and environmental goals of society. In today's economic situation, however, the importance of municipal finance has become even more pronounced due to several global and local challenges.[4] Globally, the COVID-19 pandemic, inflation, supply chain disruptions, climate change, and implementing sustainable development goals (SDGs). Locally, rapid urbanization, poverty, and infrastructure deficits are often more pronounced in developing worlds than development ones. Municipal finance is becoming more important than ever in navigating today's economic situation. It enables local governments to address immediate challenges, such as economic recovery and inflation, while also laying the groundwork for long-term sustainability, resilience, and equity. Today, municipalities in Saudi Arabian are playing a pivotal role in the Kingdom's II. LITERATURE REVIEW Conducting a literature review on municipal finance involves examining academic papers, reports, and Proceedings of WRFER International Conference, Doha, Qatar, 12th – 13th January, 2025 1 The Dilemma of Saudi Municipal Finance and Sustainable Urban Environments other sources that discuss the principles, challenges, and practices associated with managing local government finances. The literature often explores various revenue sources for municipalities, including local taxes, user fees, intergovernmental transfers, and borrowing. Bahl and Bird (2008) discuss the principles of revenue design for local governments, emphasizing the need for a balanced mix of revenue sources that are efficient, equitable, and stable.[7] While scholars such as Musgrave and Musgrave (1989) highlight the importance of expenditure efficiency, particularly in the allocation of resources to public goods and services. They argue that managing expenditure effectively is crucial for municipalities to provide essential services and maintain fiscal health.[8] Bird and Slack (2004) provide a comparative analysis of local government finance systems across developed and developing countries.[9] Their study emphasizes the differences in revenue sources, expenditure responsibilities, and the overall fiscal autonomy of local governments in these contexts. They argue that the effectiveness of local government finance systems is closely linked to the degree of fiscal autonomy and the capacity of local governments to manage their finances. In developing countries, enhancing local revenue generation, improving the design of intergovernmental transfers, and strengthening local financial management are critical for improving the effectiveness of local government finance systems. With rapid urbanization, however, the need for substantial investment in infrastructure is becoming a major focus of municipal finance literature. Slack (2009) provides a detailed examination of the various financing mechanisms available to municipalities, offering insights into how local governments can fund their activities and infrastructure projects.[10] His work explores different sources of revenue and financial tools, highlighting their advantages, limitations, and the contexts in which they are most effective. The eight key financing mechanisms for municipalities can be highlighted as follow: 1.   2.   3.   4.   5.   Property Taxes: Property taxes are a primary source of revenue for municipalities, levied on the value of real estate properties. Advantages: They provide a stable and predictable revenue stream, are relatively easy to administer, and align well with local service delivery. Limitations: Property taxes can be sensitive to economic fluctuations in real estate markets, and there can be resistance from property owners, especially if valuations rise significantly. User Fees and Charges: Municipalities can charge fees for specific services, such as water supply, waste management, and recreational facilities. Advantages: User fees are directly tied to the consumption of services, promoting efficiency, 6.   7. and ensuring that those who use services pay for them. They can help cover the costs of providing these services and reduce reliance on general taxes. Limitations: Setting appropriate fee levels can be challenging, and there may be equity concerns if fees are not structured to accommodate lowerincome residents. Grants and Transfers: Grants and transfers are funds provided by higher levels of government (central or regional) to support local governments. Advantages: They can help address fiscal imbalances and support specific projects or services that might be underfunded at the local level. Limitations: Dependence on grants can reduce local autonomy and may come with conditions or restrictions that limit flexibility. The availability and amount of transfers can also vary based on political and economic factors. Debt Financing: Municipalities can issue bonds or take loans to finance large infrastructure projects or other capital expenditures. Advantages: Debt financing allows municipalities to undertake significant projects without immediate funding requirements. It can spread the cost of projects over time, aligning with the benefits received by future residents. Limitations: Debt must be repaid with interest, which can strain future budgets. Excessive borrowing can lead to high debt burdens and affect the municipality's credit rating. Public-Private Partnerships (PPPs): PPPs involve collaboration between public entities and private firms to finance, build, and operate infrastructure projects. Advantages: PPPs can leverage private sector investment and expertise, potentially accelerating project delivery and reducing public sector risk. They can also help address funding gaps. Limitations: PPPs can be complex to negotiate and manage. They require careful planning and clear contractual agreements to ensure that public interests are protected. Special Assessments: Special assessments are charges levied on properties that directly benefit from specific public improvements, such as new roads or utilities. Advantages: They ensure that those who benefit from improvements contribute to their cost, aligning the costs with the benefits received. Limitations: The assessment process can be contentious, especially if property owners feel the charges are too high or if benefits are not as clear. Tax Increment Financing (TIF): TIF involves using the increased property tax revenues Proceedings of WRFER International Conference, Doha, Qatar, 12th – 13th January, 2025 2 The Dilemma of Saudi Municipal Finance and Sustainable Urban Environments   8.    generated by new developments to finance the initial infrastructure or improvements. Advantages: TIF can stimulate economic development and infrastructure improvements by using future revenue increases to fund current investments. Limitations: It can take time for increased revenues to materialize, and there is a risk that projected benefits may not be realized. Additionally, it may reduce the tax base for other municipal services if not carefully managed. Revenue Bonds: Revenue bonds are issued to finance specific projects, with repayment based on the revenue generated by those projects (e.g., tolls from a new highway). Advantages: They are backed by project-specific revenues, reducing the risk to general municipal funds. Limitations: The success of revenue bonds depends on the project's ability to generate sufficient revenue. If revenues fall short, it can affect the municipality's ability to meet debt obligations. 2.   3.  By understanding these financing mechanisms available to municipalities, local governments can better navigate their financial challenges, choosing the most appropriate tools to fund their activities and infrastructure projects. Effective use of these financing options requires balancing short-term needs with long-term financial health, ensuring that municipalities can sustain their operations and continue providing essential services to their communities.  4.   Nowadays, the integration of sustainability and the SDGs agenda into municipal finance is gaining strong attention worldwide, particularly in the context of supporting sustainable urban development and climate change. Municipal finance plays a crucial role in funding sustainable urban development, helping cities become more resilient, reduce carbon footprints, and improve the quality of life for residents. The C40 Cities Finance Facility (CFF) (2019) highlights several successful examples of green municipal finance initiatives that demonstrate how cities can leverage innovative financing mechanisms to support sustainable development and address climate change.[11] The CFF focuses on helping cities implement green and climate-resilient projects by providing technical assistance and facilitating access to financing. Some of these case studies on green municipal finance initiatives can be highlighted as follow: 1.  5.   Outcome: The green bond enabled the city to raise capital for critical projects while demonstrating a commitment to environmental sustainability. The initiative helped attract environmentally conscious investors and set a precedent for other cities in the region. Mexico City, Mexico (Sustainable Urban Mobility) Initiative: Mexico City invested in a comprehensive sustainable urban mobility plan, including the expansion of its bus rapid transit (BRT) system and the development of bicycle lanes. Outcome: The initiative improved public transportation efficiency, reduced traffic congestion, and lowered greenhouse gas emissions. Financing was sourced through a combination of municipal budgets, international loans, and private sector investments. Jakarta, Indonesia (Flood Resilience Infrastructure) Initiative: Jakarta implemented flood resilience infrastructure projects, including the construction of flood retention basins and improved drainage systems. Outcome: These projects helped reduce the city's vulnerability to flooding, improved urban resilience, and protected local communities. The financing was supported through a mix of public funding and international climate finance. Barcelona, Spain (Energy Efficiency Retrofits) Initiative: Barcelona invested in energy efficiency retrofits for public buildings, including schools and municipal offices. Outcome: The retrofits led to significant energy savings, reduced operating costs, and lower carbon emissions. The initiative was financed through a combination of municipal funds, EU grants, and private sector contributions. London, United Kingdom (Green Infrastructure Investments) Initiative: London focused on green infrastructure investments, such as the creation of urban green spaces, green roofs, and sustainable drainage systems. Outcome: These investments enhanced urban biodiversity, improved air quality, and provided flood mitigation. The financing was sourced from municipal budgets, private sector partnerships, and government grants. By highlighting diverse projects from different regions, the CFF demonstrates the potential for green finance to drive environmental and economic benefits, offering valuable insights for other municipalities looking to undertake similar initiatives. Finally, the impact of global economic crises, such as the 2008 financial crisis and the COVID-19 pandemic, on municipal finance is an important area of study. Authors like Blochliger (2013) discuss how Durban, South Africa (Green Bond Issuance): Initiative: Durban issued a green bond to finance a range of sustainable projects, including renewable energy and energy efficiency improvements. Proceedings of WRFER International Conference, Doha, Qatar, 12th – 13th January, 2025 3 The Dilemma of Saudi Municipal Finance and Sustainable Urban Environments municipalities can manage financial stress during such crises, including strategies for revenue stabilization, expenditure control, and access to emergency funding.[12] He provides a comprehensive framework for managing financial stress at the municipal level, emphasizing the importance of fiscal resilience, expenditure control, revenue management, and effective debt management. His strategies highlight the need for proactive financial planning, transparent communication, and institutional reforms to navigate financial challenges successfully. By implementing these measures, municipalities can better withstand economic downturns and maintain their ability to provide essential services to their communities. III. SAUDI MUNICIPALITIES: UNIQUE CHALLENGES AND OPPORTUNITIES Saudi municipalities, known as "Amanat” and/or "Baladiyat", play a crucial role in the administration and development of cities and regions across Saudi Arabia. These local government entities are responsible for a wide range of functions, including urban planning, public services, infrastructure development, and environmental management. The structure and functions of Saudi municipalities reflect the Kingdom's broader goals of modernization, economic diversification, and social development, as outlined in Saudi Vision 2030. Today, there are more than 285 Municipalities in Saudi Arabia serving about 270 Saudi cities (Figure 1& 2). These municipalities range from class “A” to class “E” municipalities.[13] The review of literature on municipal finance covered a wide range of unique challenges and opportunities faced by municipalities, particularly in developing countries. Understanding these various aspects of municipal finance (i.e., revenue generation, expenditure management, innovation, PPPs, sustainability, and global crises) is crucial for supporting effective and resilient local governance. By doing so, municipalities can create more livable, resilient, and sustainable communities while ensuring long-term financial health. Saudi municipalities are generally categorized based on factors like population size, economic importance, administrative responsibilities, and geographical characteristics. This classification system of municipalities ensures that governance and public services are tailored to the needs and significance of each area, from the bustling urban centers to the more remote rural regions. Figure 1: Municipal Categories in Saudi Arabia Proceedings of WRFER International Conference, Doha, Qatar, 12th – 13th January, 2025 4 The Dilemma of Saudi Municipal Finance and Sustainable Urban Environments Figure 2: Saudi Cities Classifications Though, there are seven key functionsacross all municipality’s classes, [14] these key functions can be summarized as follows: 1. 2. 3. 4. 5. 6. Urban Planning and Development: Saudi municipalities are responsible for the planning and zoning of urban areas. This includes managing land use, overseeing the development of residential, commercial, and industrial areas, and ensuring that urban expansion aligns with national and regional development plans. Public Services: Municipalities provide essential public services such as waste management, water supply, sanitation, and street maintenance. They also oversee the management of public parks, recreational facilities, and other community services. Infrastructure Development: Infrastructure projects, including roads, bridges, and public transportation systems, fall under the purview of municipalities. They are tasked with both the construction and maintenance of these critical assets. Environmental Management: Environmental conservation and pollution control are key responsibilities. Municipalities work to ensure that development projects comply with environmental regulations and contribute to the sustainability of natural resources. Regulation and Licensing: Municipalities regulate commercial activities within their jurisdictions by issuing permits and licenses for businesses, construction projects, and other 7. activities. This regulatory function helps ensure compliance with local laws and standards. Public Health and Safety: Ensuring public health and safety is another vital role, including the regulation of food establishments, monitoring of public spaces, and management of disaster response efforts. Community Engagement: Saudi municipalities are increasingly focusing on engaging with local communities to gather input on development projects, address public concerns, and ensure that services meet the needs of residents. As part of the Vision 2030 objectives, Saudi municipalities play a key role in achieving the objectives of Vision 2030 by leading urban development, enhancing public services, and fostering sustainable growth at the local level.[15] The ongoing reforms and initiatives within municipalities are crucial for creating vibrant, livable cities that meet the needs of Saudi Arabia's growing urban population. There has been a significant push to modernize municipal services and governance. This includes efforts to improve transparency, efficiency, and accountability within municipalities. The aim is to create smarter, more livable cities that can support the Kingdom's broader economic and social goals. One of the major challenges facing Saudi municipalities today is the rapid urban growth. Rapid urban growth, driven by population increase and economic development, has placed significant pressure on municipal services, infrastructure, and housing. Municipalities struggle to keep up with the Proceedings of WRFER International Conference, Doha, Qatar, 12th – 13th January, 2025 5 The Dilemma of Saudi Municipal Finance and Sustainable Urban Environments demand for urban planning, transportation, and public utilities. Today Saudi Arabian urbanization rate Year 1960 1970 1980 1990 2000 2010 2020 2022 Saudi Population Urban 1.3 3.0 6.7 12.3 17.2 24.1 30.3 30.8 exceeded 86% comparing with only 73% twenty years ago(Table 1). Rural 2.9 3.1 3.5 3.7 4.3 5.3 5.7 5.6 Total 4.2 6.1 10.2 16.0 21.5 29.4 36.0 36.4 Urbanization Rate 31.2% 48.7% 65.9% 76.6% 79.8% 82.1% 84.3% 84.7% Table.1 Urban and Rural Population in Saudi Arabia (in million) Source: World Bank Database, 2024.[16] In fact, this large demand for municipal services due to rapid growth and economic development is faced by a weakness or slowdown in the growth of Saudi municipal revenues.[17]Still the Saudi municipalities have depended heavily on allocations from the central government, which in terms created another pressure on central government financial system (Table 2). During the last ten years, however, the central government funds to municipalities exceeded 35 billion Saudi Riyal (about $9.28 billion), while municipal own revenues pearly exceeded 7 billion Saudi riyals (about $1.89 billion). This continued Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Muni Own Rev. 1.3 1.4 1.4 1.4 1.5 1.7 1.8 1.9 2.1 2.3 2.9 3.2 3.6 4.2 4.8 5.6 6.4 7.3 8.2 9.1 10.0 reliance on the government budget dependency has led Saudi municipalities being obligated by central government to generate about 40% of their own revenues during the next five years. [18& 19] Under Vision 2030, there is a clear mandate for municipalities to enhance their financial autonomy, reduce reliance on central government funding, and develop diverse, sustainable revenue streams. This transition is integral to achieving the broader goals of economic diversification, urban development, and improved quality of life across the Kingdom. Gov’t Grants 5.7 7.2 8.0 5.4 6.2 9.0 11.6 13.6 15.0 16.5 18.7 21.2 25.5 31.7 34.6 34.2 21.2 47.9 53.4 62.2 53.6 Muni Share of Total Rev. 23% 19% 18% 26% 24% 19% 16% 14% 14% 14% 15% 15% 14% 13% 14% 16% 30% 15% 15% 15% 19% Table.2 Saudi Municipal Revenues (in billion Saudi Riyals) Source: Saudi Central Bank, 2023.[19] The notion of sustainability and sustainable urban development is another significant challenge facing Saudi municipalities. As Saudi Arabia seeks to transform its economy through Vision 2030, sustainability has become a core element of its municipal strategies. This transformation has required a shift in how Saudi cities are financed and managed to support long-term economic, social, and environmental objectives. Saudi municipalities are tasked with promoting sustainable practices in waste Proceedings of WRFER International Conference, Doha, Qatar, 12th – 13th January, 2025 6 The Dilemma of Saudi Municipal Finance and Sustainable Urban Environments management, water usage, and energy efficiency while addressing the environmental impacts of urban expansion, reduce carbon emissions, and enhance the quality of life. to address current challenges and contribute meaningfully to the nation’s Vision 2030 objectives. These highlighted policy recommendations are as follow: According to sustainable development report (2024), [20] the SDG index of Kingdom of Saudi Arabia scored about 64.91% comparing with 52.74% in 2000, which indicated that about 23% of progress has been made during the last 23 years period. To foster this rate of sustainability, however, municipalities need to play a more dynamic and important role in prioritize green urban planning, investing in smart city technologies, and enhancing urban resilience. Municipalities also need to build capacity in terms of skilled workforce, technological expertise, and efficient management practices. 1.  Today, there are more than 101 thousand municipal staff members in Saudi municipalities, about 58% are Saudi citizens while about 42% are non-Saudi.[21] Most of these staff members, however, handle the day-to-day operations of the municipality, including paperwork, scheduling, and communication which not requiring special working skills or technical expertise, which in term requires more ongoing training and development programs for municipal staff in the areas of technical expertise, professional qualifications, investment attractions, revenue generation, and overall financial instruments.    The above unique challenges or dilemmas (i.e. urbanization, sustainability, revenue generation and capacity building) facing Saudi municipalities as they strive to enhance urban management and service provision to their localities. Addressing these challenges requires a comprehensive approach that integrates strategic planning, stakeholder collaboration, and innovative solutions. The success of Vision 2030 is closely tied to the effectiveness of municipalities in implementing these transformative changes at the local and regional level. IV. CONCLUSION AND RECOMMENDATIONS SOME 2. POLICY  Saudi municipalities are at a critical juncture as they navigate the complexities of rapid urbanization, economic diversification, and the ambitious goals outlined in Vision 2030. The challenges they face— ranging from infrastructure development to sustainable growth—require innovative and adaptive approaches to urban management. By addressing these challenges head-on, Saudi municipalities have the potential to create more livable, sustainable, and resilient cities that contribute to the nation’s broader development objectives.   Several policy recommendations need to be highlighted and empowered by Saudi municipalities Balancing urban growth and sustainability: Rapid urbanization in cities like Riyadh, Jeddah and Dammam requires large-scale investment in infrastructure while ensuring that such development is sustainable, reducing carbon footprints, and maintaining environmental quality. To do so, municipalities need to: Invest in smart city technologies that enhance the efficiency of public services, reduce environmental impact, and improve quality of life. This includes expanding digital infrastructure, implementing intelligent traffic management systems, and enhancing public service delivery through digital platforms. Prioritize green urban planning, focusing on energy-efficient buildings, renewable energy sources, and sustainable waste and water management systems. Encourage the use of green spaces to improve air quality and enhance urban resilience. Develop comprehensive urban plans that anticipate future growth and infrastructure needs. Ensure coordination between different levels of government and sectors to create cohesive urban development strategies. Allocate sufficient resources for the maintenance and upgrading of existing infrastructure, with a focus on critical areas like transportation, water, and sewage systems. Implement regular audits to assess infrastructure conditions and prioritize investments. Diversifying Municipal Revenues:Historically, municipalities in Saudi Arabia have relied heavily on national government transfers and oil revenues. The dilemma may revolve around finding new, more sustainable revenue streams that can support urban projects longterm. Encourage municipalities to explore alternative revenue streams, such as local taxes, publicprivate partnerships (PPPs), and municipal bonds. Reducing dependency on central government funding will enable more responsive and localized decision-making. Implement performance-based budgeting to ensure funds are allocated effectively and projects deliver value for money. This includes adopting transparent financial practices to build public trust. International best practices models in municipal finance system need to be adapted to Saudi local cultural, economic, and environmental contexts. Proceedings of WRFER International Conference, Doha, Qatar, 12th – 13th January, 2025 7 The Dilemma of Saudi Municipal Finance and Sustainable Urban Environments 3.    [7] Building Capacity and Human Resources: To achieve the ambitious targets of Vision 2030, municipalities need to build capacity in terms of skilled workforce, technological expertise, and efficient management practices. This requires ongoing training and development programs for municipal staff. Invest in the continuous training and professional development of municipal staff to build capacity in areas such as urban planning, sustainability, and digital transformation. Implement strategies to attract and retain skilled professionals in municipal roles, including competitive salaries, career development opportunities, and supportive work environments. By adopting these policy recommendations, Saudi municipalities can overcome current unique challenges and play a pivotal role in the nation’s transformation, fostering sustainable, inclusive, and well-governed urban environments that contribute to the prosperity of all citizens. [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] REFERENCES [1] [2] [3] [4] [5] [6] C. Farvacque, andM. Kopanyi, M. “Municipal Finances: A Handbook for Local Governments,” World Bank publications, 2014. 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Bird, “Subnational Taxes in Developing Countries: The Way Forward,” Public Budgeting & Finance, vol. 28, no. 4, pp, 1-25, 2008. R. A. Musgrave, and P. B. Musgrave, P. B. “Public Finance in Theory and Practice,” (5th ed.), McGraw-Hill, 2089. R. M. Bird, and E. Slack, “International Handbook of Land and Property Taxation,” Edward Elgar Publishing, 2004. E. Slack, “Local Government and Property Taxation: The Challenges of Reform. In The Future of Local Government Finance” Palgrave Macmillan, 2009. C40 Cities Finance Facility (CFF), “Accelerating Climate Action in Cities: Lessons from the C40 Cities Finance Facility,” C40 Cities, 2019. H. Blochliger, H. “Decentralization and Local Public Finance: New Evidence from the OECD,” OECD Economics Department Working Papers, no. 1046, OECD, 2013. Balady, “Municipal and village cluster system in Saudi Arabia,” Ministry of Municipalities & Housing, Riyadh, 2018. UN-HABITAT, “Urban Economy & Municipal Finance in the Kingdom of Saudi Arabia: Evidence from Buraydah and Dammam,” United Nations Human Settlements Programme. Riyadh, 2018. Saudi Vision – 2030, Available online: https://www.vision2030.gov.sa/media/rc0b5oy1/saudi_vision 203.pdf (accessed on Oct. 2, 2024). World development indicators database, “Saudi Arabian development indicators – population,” WB database, 2024. A. K. Alhowaish, “Causality between municipal spending and economic growth in Saudi Arabia: an econometric approach,” Arab Journal of Administrative Sciences, Vo. 21, no. 3, pp. 429-449, 2014. Saudi Vision 2030, “National transformation program,” annual report 2023. Available online: National Transformation Program (vision2030.gov.sa) (accessed on Oct. 5, 2024). Saudi Central Bank, “Financial stability report,” Riyadh, 2023. Available online: https://www.sama.gov.sa/enUS/EconomicReports/Financial%20Stability%20Report/Fina ncial%20Stability%20Report%202023.pdf General Authority of Statistics, “Sustainable Development Goals (SDGs) Indicators Report” Saudi Arabia Riyadh, 2024. Available online: https://www.stats.gov.sa/sites/default/files/Sustainable%20De velopment%20Goals%20%28SDGs%29%20Indicators%20R eport%20En.pdf Ministry of Municipalities & Housing, “Municipal Staffs in Saudi Arabian Municipalities Report,” Riyadh, 2023. Available online: https://www.al-madina.com/article/731858, (accessed on Sept. 20, 2024).  Proceedings of WRFER International Conference, Doha, Qatar, 12th – 13th January, 2025 8