The Global Diffusion of Urban Policies: Identifying Diffusion Mechanisms & Key Factors That Influence the Adoption of BIDs as a Strategic Development Plan in Middle Eastern and European Contexts
Cities are at the forefront of addressing multifaceted global challenges, such as climate change, rapid urbanization, and globalization. Temporal phenomena, such as COVID-19 served as opportunities to rethink radical solutions that help strengthen our worldwide urban systems. With its impact not only having reshaped the physical landscapes of cities, but also urging a fundamental re-evaluation of policies and decision-making processes governing urban development, in addition to recognizing the need for collaborative approaches between cities to navigate such phenomena. Business Improvement Districts (BIDs) have emerged as a globally diffusing model of urban governance, yet the mechanisms through which they travel across cities and the factors shaping their adoption in different institutional and planning contexts remain insufficiently understood, particularly in the Middle East. This study investigates what explains the diffusion of BIDs as a strategic urban development plan and examines the mechanisms and key factors influencing their adoption in two contrasting urban contexts: King Abdullah Financial District (KAFD) in Riyadh, Saudi Arabia, and Amsterdam Zuidas in Netherlands. The study adopts a policy diffusion framework centred on three mechanisms—coercion, competition, and learning—and examines their interaction with external factors, including organizational and geographical influences, and internal political and socio-economic factors. A qualitative comparative case-study strategy using a “most-different” research design was employed, supported by targeted surveys and desk research. Twelve responses were analysed, comprising seven from Riyadh and five from Amsterdam, alongside governmental, project, and academic sources. Survey and documentary evidence were qualitatively coded and analysed using ATLAS.ti to identify relationships between diffusion mechanisms and BID adoption. The findings demonstrate that BID diffusion is not driven by a single mechanism but by interacting processes whose relative importance varies according to the receiving urban context. In Riyadh, where BID adoption remains at an early stage, coercion and economic competition are dominant, reflecting a centralized planning environment, strong political leadership, and ambitions for economic diversification and international competitiveness. In contrast, Amsterdam demonstrates a stronger reliance on learning, particularly lesson drawing and rational learning, supported by a more decentralized governance structure and the formalization of BIDs within the
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