Rise is attributed to a 71% growth in its services sector, bolstered by the entry of five major global services firms Dammam, Makkah, and Madinah were among the most improved cities in the Middle East region RIYADH: The Saudi city of Dammam has emerged as a standout performer in Kearney’s 2024 Global Cities Index, achieving a 19-rank increase in the “Business Activity” dimension. The rise is attributed to a 71 percent growth in its services sector, bolstered by the entry of five major global services firms. Published by London-based global management consulting firm Kearney, the GCI assesses the engagement of cities worldwide across five key dimensions, including business activity, human capital, information exchange, cultural experience, and political engagement. The growth in Dammam, which is the capital of the Eastern Province, underscores Saudi Arabia’s ongoing efforts to diversify its economy and enhance its global competitiveness. Rudolph Lohmeyer, Kearney partner, National Transformations Institute, said: “Dammam’s standout performance in the Business Activity dimension of our assessment, for example, exemplifies how the services industry is becoming a cornerstone of Saudi Arabia’s economic vision, and highlights the potential that is yet to be unlocked.” He added: “Our analysis shows a new form of globalization emerging – one that is more distributed, networked, and marked by a high degree of uncertainty in the near term.” Lohmeyer said that in a shifting landscape of global trade and capital flows, cities in the region, including those within the Kingdom, have an opportunity to further capitalize on their strategic location and growing economies. The report also highlighted that Dammam, Makkah, and Madinah were among the most improved cities in the Middle East region. In addition to its strong showing on the GCI, Makkah also made gains in the Global Cities Outlook, climbing eight ranks, driven primarily by private investments in the innovation sector. The rise underscores the Kingdom’s growing prominence on the global stage. The report also addresses the environmental challenges facing cities, exacerbated by climate change. “Climate disasters have caused significant financial losses, and cities — being major consumers of energy and producers of greenhouse gas emissions — are both victims of and contributors to these issues,” Kearney’s report said. Sascha Treppte, partner at Kearney Middle East and Africa, emphasized the need for cities to adopt a more proactive and holistic approach to sustainability. “We see significant efforts from cities to address challenges related to sustainability and climate change, but too often these are piecemeal reactions to individual symptoms,” he said. Treppte added that cities must shift their perspective toward becoming more systems-oriented and proactive. “This is possible through what we call a regenerative approach — one that focuses on building institutional capabilities and readiness to address the challenges of today and tomorrow holistically and for the benefit of all.” The Global Cities Outlook focuses on how cities are preparing for future global leadership by assessing their performance across four dimensions, including personal well-being, economics, innovation, and governance. “The GCO is designed to spotlight not only the well-established leaders but also those cities that may be best positioned — thanks to strategic investments in future performance — to challenge their supremacy,” the report added.