As part of Crown Prince Mohammed bin Salman’s ambitious Vision 2030 agenda, Saudi Arabia is developing a variety of tourism-focused projects to alleviate its economic reliance on oil and gas and create a more vibrant and thriving society. These projects encompass expansive green spaces (Green Riyadh), renewable energy developments (King Salman Energy Park), island paradises (The Red Sea Development), and futuristic megacities, including Neom.
Launched in 2017, Neom is a planned $1.5 trillion, 10,200 square-mile city in the northwest part of the country, south of Jeddah, that will run entirely on renewable energy and feature a world-class ski resort, industrial port, and a first-of-its kind glass-walled city, known as The Line, that will extend 105 miles across the desert and eventually be home to more than 1 million people. Saudi Arabia began construction on Neom, but there are varying reports about the project’s progress, both within the kingdom and in Western media.
Here’s what we know as of May 2024, seven years since Crown Prince Mohammed bin Salman announced Neom.
Potential Delay
Saudi Arabia’s original estimate for the completion of the megacity was 2039, while it intended to have significant elements of the project completed by 2020. Many projects have been pushed back, however, due in part to the pandemic and other concerns. Now, there are reports that suggest the Crown Prince might be open to further delaying the project. The Financial Times, in May, citing an unnamed source “familiar with the thinking at the Public Investment Fund,” the sovereign wealth fund that is providing financial backing for Neom, said MBS might be ready to have “tough conversations” about the $1.5 trillion megacity.
In addition, Bloomberg, in the prior month, reported that the high costs of Neom have started to worry some Saudi government officials. The American publication also suggested The Line would only be 1.5 miles long by 2030, instead of 105 miles, and only house 300,000 people instead of 1.5 million. The Wall Street Journal, meanwhile, reported that the Middle East country started taking out additional loans to fund Neom and other Vision 2030 projects.
Saudi Arabia’s Pushback
The Saudi government, however, has pushed back on suggestions from Western media that it is scaling back some of its projects, including Neom, due to financial concerns. Speaking at a World Economic Forum meeting in Riyadh in April, Faisal Al Ibrahim, Saudi Arabia’s economy minister, explained that all projects are moving ahead and promised the country would deliver on these unprecedented plans, albeit in a vague manner without much insight on timelines.
“Today the economy in the kingdom is growing faster, but we don’t want to overheat it. We don’t want to deliver these projects at the cost of importing too much against our own interest,” said Al Ibrahim. “We will continue delivering these projects in a manner that meets these priorities, delivers these projects and has the optimal healthy impact for our economy and the … healthy non-oil growth within it.”
Neom’s COO Giles Pendleton seemingly responded to Western media claims, releasing a new video for his “Neom is Real” YouTube series in May that shows construction of The Line. He said it was a record month for the project in terms of excavation numbers and noted that media reporting was “incorrect.”
Construction Contracts and Infrastructure Plans
Some projects may be behind schedule, but Saudi Arabia has already awarded more than $235 billion in construction contracts for Neom and detailed some of its subprojects, including The Line, Neom Bay and Neom Bay Airport, and Oxagon, a 200-square-kilometer floating industrial complex with a desalination plant, oceanographic research facility, and hydrogen plant. The Line will also feature a royal palace.
Trojena and Jaumur
Trojena and Jaumur are two other ambitious subprojects of Neom. Launched in 2022, Trojena is an in-development outdoor skiing facility that will be the first of its kind on the Arabian Peninsula. Located in the Sarat Mountains, the resort will also feature the first “vertical ski village,” with a variety of restaurants and shops, wellness resorts, 1,000 hotel rooms, and more than 400 residences throughout six districts.
Trojena is expected to be finished by 2026, but higher-than-expected costs could derail that timeline. Per Neom documents, Trojena’s estimated cost went up from $19 million to $38 million over a two-year period ending in October 2023. The in-development venue is expected to host the 2029 Asian Winter Games. Jaumur, meanwhile, is a self-contained marina that is expected to have 500 apartments, 700 luxury villas, and a pair of destination hotels with 350 rooms and suites. The apartments and villas will feature private mooring and waterfront access. In addition, there will be a 1.5-kilometer aerofoil that provides protection for the largest yacht berths. Neom’s board of directors announced the project in May 2024, describing it as the “largest cosmopolitan luxury community set on the coast of Gulf of Aqaba.”