Saudi Prince Reveals Plans to Build Megacity
Crown Prince of Saudi Arabia, Mohammed bin Salman, first revealed the nation’s plan to construct a futuristic desert city in 2017. Dubbed “The Line,” the city is part of an extensive development known as Neom, which is part of the Prince Vision 2030 project.
WASHINGTON, DC - MARCH 20: Crown Prince Mohammed bin Salman of the Kingdom of Saudi Arabia is seen during a meeting with President Donald Trump in the Oval Office at the White House on March 20, 2018 in Washington, D.C. (Photo by Kevin Dietsch-Pool/Getty Images)
When the project was announced in 2017, The Line was predicted to stretch over 105 miles through the Saudi desert. However, recent estimates suggest it will only extend for around half a mile by 2030.
Futuristic City
During the Prince’s reveal, the city appeared like something from a sci-fi movie: two parallel skyscrapers, each stretching for over 100 miles through the desert. Powered by renewable energy and full of state-of-the-art technology, the prince hoped this would steer his nation away from its dependency on oil.
Source: Neom
According to reports, the city would be equipped with everything needed to support 9 million residents, including parks, waterfalls, theme parks, a ski resort, flying taxis, and robot maids.
Investment Into the City
The Saudi Arabian government initially promised the Crown Prince a budget of over $500 billion for the city. Further investment from local and foreign investors hoped to take the total to around $1.5 billion.
Source: Freepik
Such an ambitious project was always set to run into some hurdles. However, it appears The Line has hit a brick wall and the project will be downscaled significantly.
Project Runs Into Problems on the Ground
Speaking with Business Insider, Kristian Coates Ulrichsen, a fellow for the Middle East at Rice University’s Baker Institute for Public Policy, said, “Neom was like was an imaginary city when it was announced.”
Source: Wikimedia
She continued, “Now, they’re finding it much more difficult to turn that imaginary vision into some sort of reality on the ground.”
Major Financial Problems
Major financial problems are the leading cause behind the city’s downsizing. While construction work began in 2017, in the years that followed, reports have suggested that The Line has been deemed controversial by high-ranking members of the Saudi government, per Bloomberg.
Source: Freepik
Projections estimated that over 1.5 million people would live in the city by 2030. However, in the wake of financial struggles, those close to the project surmise this number is now as low as 300,000.
Saudi Government Yet to Announce 2024 Funding
The city received another devastating blow: despite being halfway through the year, the kingdom’s sovereign wealth fund has yet to approve Neom’s 2024 budget.
Source: Freepik
However, “NEOM has secured a revolving credit facility (RCF) worth SAR10 billion to support short-term financing requirements, as the PIF giga-project moves forward in the development of major projects including Trojena, THE LINE, Oxagon, and the soon-to-open luxury island destination, Sindalah,” wrote the Saudi Public Investment Funds website.
Government Appears Unenthusiastic About Spending Billions
While Crown Prince Mohammed bin Salman believes the city, along with the wider Neom project, could revolutionize the nation, it appears many in the Saudi government don’t share his enthusiasm.
Source: Freepik
According to the experts, the reality of spending trillions of dollars is starting to cause concern among high-ranking members of the Saudi government.
Lack of Foreign Investment
A lack of foreign investment has also significantly affected the Prince’s plans, as the Kingdom was counting on overseas funding to cover much of the construction costs.
Source: Karolina Grabowska/Pexels
“When Vision 2030 was announced back in 2017, the assumption had been a lot of the funding would come in from foreign investment — that didn’t happen,” Ulrichsen said.
Early Hurdle For Funding
It’s no surprise the funding has struggled to meet expectations as just ten days after the megacity was announced, over 400 of the nation’s wealthiest and most influential citizens were detained in Riyadh’s Ritz-Carlton hotel.
Source: Freepik
“The hotel basically became a detention recap of the Saudi business elites who might have been expected to be the ones partnering with foreign investors,” Ulrichsen said. “Saudi foreign investment levels — they had been declining anyway — collapsed after this, and it’s been very difficult for them to build back up.”
Construction Crew Leaves the Site
Reports have also revealed that at least one construction company has dismissed its workers from the site, further emphasizing the financial stress placed on the project.
Source: Oliver Llaneza Hesse/Construction Photography/Avalon/Getty Images
This news comes after it was revealed that several of Neom’s other projects, including an industrial city and the construction of two ports, will also be delayed.
Finance Minister Claims More Time Is Needed
Regarding the situation, Finance Minister Mohammed Al Jadaan claims more time is required to “build factories, build even sufficient human resources.”
Source: Jeriden Villegas/Unsplash
He continued, “The delay or rather the extension of some projects will serve the economy.”