Riyadh: Saudi Arabia’s ambitious $500 billion Neom mega-city project, envisioned as a futuristic urban marvel, is grappling with significant financial and logistical hurdles. Launched in 2017 as part of Crown Prince Mohammed bin Salman’s Vision 2030 initiative, Neom was designed to diversify the Kingdom’s economy and reduce its reliance on oil. However, escalating costs and delays have raised concerns about the project’s feasibility.
The centerpiece of Neom, The Line, a 170-kilometer-long linear city featuring two parallel skyscrapers, has faced engineering challenges and ballooning expenses. Initial plans to construct 16 kilometers of The Line by 2030 have been scaled back to just 2.4 kilometers, with completion now expected by 2034. Reports suggest that the project’s total cost could reach $8.8 trillion by 2080, over 25 times Saudi Arabia’s annual budget.
Additionally, internal audits have uncovered financial mismanagement, including inflated projections and manipulated figures to justify surging costs. The departure of Neom’s CEO, Nadhmi al-Nasr, amid allegations of harsh management practices, has further complicated the project’s progress.
Despite these setbacks, Saudi officials remain optimistic about Neom’s potential to attract global investment and redefine urban living. The project includes innovative features such as a floating business district, a desert ski resort, and advanced sustainability measures. However, foreign direct investment in the Kingdom remains below targets, with investors expressing concerns about the project’s scale and regulatory environment.
As construction continues, Neom’s success will depend on overcoming these challenges and delivering on its promise of a futuristic desert paradise. The world watches closely as Saudi Arabia navigates the complexities of this unprecedented urban development.
