The Neom project, this futuristic and megalomaniac megalopolis located in the middle of the desert, is in trouble. Announced in 2017 by Crown Prince Mohammed bin Salman, the main objective of the project was to build The Line, a series of parallel skyscrapers 500 meters high and 170 km long.
It’s stuck on finances
This linear city was expected to house 1.5 million residents by 2030. Financial hurdles and budgetary adjustments led the Saudi government to reduce the length of the project to just 2.4 km and lower the number of The expected population: we will have to settle for less than 300,000 people.
This reduction is partly explained by the fact that the 2024 budget for Neom has not yet been approved. Documents obtained by Bloomberg indicate that at least one contractor has started laying off some of the workers employed on the site, illustrating the financial difficulties facing the project.
Neom, whose estimated cost ranges between 1,000 and 1,500 billion dollars (!), is part of a broader strategy aimed at diversifying the Saudi economy beyond oil and gas exports. The project has already sparked controversy, particularly due to forced expropriations of local indigenous communities, some of which have led to violent incidents.
The United Nations Human Rights Council has also condemned the planned execution of three men from the Howeitat tribe, accused of resisting the Neom project. Additionally, no independent observers or worker unions are allowed in the country, adding to the controversy surrounding the project.
Despite these challenges, international companies continue to collaborate on Neom. AtkinsRéalis and Jacobs were named delivery partners for The Line last February, while companies including Aecom, Bechtel and Keller signed major contracts for project management and foundation work.
During a global entrepreneurs’ forum organized in April 2024, Neom reaffirmed its commitment to continuing the development of the project despite the adjustments. More than 100 companies attended this event, receiving updates on construction progress and opportunities offered by Neom.
Neom Managing Director, Nadhmi Al-Nasr, emphasized the crucial role of the project in the economic transformation of the kingdom. According to him, extending the deadlines for certain projects will make it possible to better meet economic needs and create employment opportunities. He also discussed progress on other major components of Neom, such as The Spine, Oxagon, Trojena and Neom International Airport.
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