Saudi Arabia’s Ministry of Municipal and Rural Affairs announced efforts to tackle a range of challenges surrounding the municipal sector. The ministry said it aims to identify both strengths and shortcomings of the sector to improve performance and raise the level of output, adding it is working to find a unified strategy for it. It also said it aims at establishing an efficient procedure for drawing up budgets among the secretariats, in addition to optimizing accumulated general experience. In the recent period, the Ministry of Municipal and Rural Affairs in Saudi Arabia has been working on assessing the current status of the municipal sector and spotting critical institutional challenges. The Ministry did not shy away from identifying some of the institutional challenges related to regulatory and technical measures. It also launched 17 initiatives addressing challenges facing the sector. At the same time, the ministry linked each initiative with appropriate implementation programs, as well as a number of actions to address institutional challenges. These developments come as coincided with ministerial efforts for studying 17 local cities, with the aim of transforming them into ‘smart cities’. This step will contribute to raising the volume of investment, increase employment opportunities and achieve nationwide development. Smart cities is one of the most significant initiatives expected to have great impact on activating partnerships with the Saudi private sector, contributing to building a sustainable and vibrant partnership model. In keep with the Kingdom Vision 2030, smart cities in Saudi Arabia aim to raise the level of public satisfaction, enhance city competitiveness, improve management efficiency, ensure urban sustainability, reduce negative environmental impacts, attract domestic and foreign investment, create jobs and improve the indicators of prosperity in all modernized cities. Today, Saudi Arabia is one of the worlds most dynamic countries as it moves closer towards realizing its Vision 2030 which heavily relies on diversifying the countrys economy and lowering oil dependence.