The World Bank has announced the opening of a new regional hub in Riyadh, Saudi Arabia, a significant move set to enhance its development and infrastructure initiatives across the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP). The new hub, which will be co-located with the World Bank Group’s Gulf Cooperation Council (GCC) regional office, aims to strengthen collaboration with governments and facilitate more rapid and direct support for regional projects.
A Strategic Move for Regional Development
The establishment of the Riyadh hub is designed to bring the World Bank’s decision-making and operational support closer to the countries it serves. This proximity will enable more agile responses to the diverse development challenges facing the MENAAP region, from post-conflict reconstruction to advancing green growth. Recent World Bank initiatives in the region include providing USD 60 million in disaster management loans to Turkiye, a USD 146 million grant to help restore electricity in Syria, and a USD 930 million loan to improve Iraq’s railway performance and economic diversification.
Ousmane Dione, the World Bank’s Vice President for the region, noted the strategic importance of the location, stating, “Riyadh is not only a gateway to the region’s transformation, but also a powerful platform for global knowledge exchange and policy innovation.”
Deepening a 50-Year Partnership
This milestone marks a deepening of the long-standing relationship between the World Bank and Saudi Arabia, which spans over five decades. The partnership began when the Kingdom joined the International Bank for Reconstruction and Development in 1957, and was formalized with a Technical Cooperation Program in 1975. More recently, this collaboration was strengthened with the launch of a new global Knowledge Hub (K-Hub) in Riyadh, focused on facilitating knowledge exchange and joint research to advance global development.
Aligning with the Kingdom’s Vision
The World Bank’s decision aligns perfectly with Saudi Arabia’s government-backed regional headquarters program. Launched in 2021, the program is a key component of the Kingdom’s strategy to position itself as a premier business and investment hub. It offers significant incentives to multinationals establishing their regional base in the country, including a 30-year corporate income tax exemption, withholding tax relief, and streamlined regulatory support.
About The World Bank
The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is a unique global partnership of five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. The World Bank Group provides a wide array of financial products and technical assistance, helping countries share and apply innovative knowledge and solutions to the challenges they face.
Source: Waya
