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Saudi Arabia plans to significantly downsize its flagship supercity project, Neom.
Saudi Crown Prince and Neom Chairman Mohammed bin Salman is reportedly envisioning a much smaller development than originally planned after years of cost overruns and delays.
On Saturday, Saudi Arabia announced the indefinite postponement of the 2029 Asian Winter Games in Troyena. A ski resort that can be enjoyed all year round In the Neom Mountains.
In addition to downsizing Troyena, work is reportedly underway to fundamentally redesign it. the linea futuristic linear city and centerpiece of Neom, originally planned to stretch 170 kilometers inland from the Red Sea across the desert mountains.
Growing price pressure
The decision to downsize Neom and postpone the Asian Games appears to reflect increasing pressure on Riyadh’s ambitious projects amid low oil prices. Brent crude oil is currently trading at just over $60 per barrel.
Neom, which covers an area roughly the size of Belgium, was first touted as Saudi Arabia’s answer to Silicon Valley, a hub for technology and future innovation. The expected cost was around $500 billion, but recent reports suggest the actual number could be closer to $9 trillion.
First touted in 2017, the desert megacity was expected to be home to 9 million people by 2045, as Saudi Arabia seeks to grow its population and become a global economic power.
Some high-profile projects include:
- The Rhine is an inland city that runs from the Red Sea to the desert mountains.
- Trojena is the ski resort chosen to host the 2029 Asian Winter Games.
- Oxagon, coastal industrial and logistics zones.
Since its launch, Neom has faced deep suspicions about its services from within and outside the kingdom. huge scale and feasibility.
“The Line” in the sand?
Unveiling The Line’s design, bin Salman said the car-free city, complete with flying taxis and robot butlers, would be the most livable city on Earth “so far.”
Despite the engineering feat required to construct two 500-meter-tall skyscrapers on the 170-kilometre-long Red Sea coast, the entire city was to run entirely on renewable energy.
Residents also needed to be able to access all the services they needed within a five-minute walk from their homes.
AI takes center stage
The project is expected to be much smaller than it is now, with the Saudi government believed to have shifted its focus to industrializing Neom, particularly as a data center hub.
Due to its coastal location and availability of abundant seawater, it is considered strategically suitable for such facilities that require large amounts of cooling water.
Diversifying the kingdom’s oil-dependent economy remains a top priority for the crown prince, who aims to position Saudi Arabia as a world leader in artificial intelligence.
Neom is backed by Saudi Arabia’s Public Investment Fund, valued at nearly $1 trillion, and whose board is chaired by the crown prince. The fund, tasked with driving transformation in the kingdom, is facing increasing scrutiny for profiting from its huge investments.
Neom’s downsizing comes as Saudi Arabia prepares to host a series of major international events, including Expo 2030 Riyadh and the 2034 FIFA World Cup. These require huge infrastructure investments and are part of Bin Salman’s Vision 2030 project.
Additional sources of information • AP