NEOM: Challenges and Reality of Saudi Arabia’s Vision
NEOM, envisioned as the flagship of Saudi Arabia’s efforts to diversify its economy, has seen significant setbacks eight years into its development. Financial Times recently labeled the project a “dream unsolved,” highlighting persistent cost overruns and construction challenges.
Last week, it became evident that many elements of NEOM’s ambitious design were flawed. For instance, the plan to suspend a 30-storey structure from an arch became problematic, as the practicalities—like how to manage waste—were underestimated. The executive director envisioned a complex system of shuttle cars to navigate the waste produced by an extensive number of toilets in the city.
This striking architectural layout, conceptualized by Olivier Plon, who has ties to Marvel’s superhero films, was backed by Saudi Crown Prince Mohammed bin Salman (MBS), who admired such cinematic visions.
The centerpiece of NEOM is a “linear city” known as The Line, which was imagined as a glass structure stretching 100 miles, even drawing comparisons to the Great Wall of China with its innovative design.
Intended to house a large indoor marina and a stadium for the 2034 World Cup, the initial ambitions were grand. Yet, as the project has progressed, costs have ballooned to $50 billion, creating a vast construction site rather than the futuristic hub envisioned. Foreign investors are skeptical, and some officials have begun calling NEOM a “multi-generational development.”
Communicating the stalled reality to MBS will be a challenge. Initially, NEOM was meant to demonstrate Saudi Arabia’s potential for cutting-edge technology investments, but what began as an impressive vision has evolved into something far less feasible. The project’s scale was drastically larger than what engineers had suggested.
Originally, the city was expected to welcome residents by 2025, with the first phase labeled as the world’s most ambitious construction endeavor, estimated at $1.5 trillion. However, projections have since tripled and the foundational realities, like the world’s steel and cement supply, are daunting. One former employee noted that France’s cement output barely meets the needs for the initially planned twenty modules by 2030, complicating logistics further.
Ultimately, plans have shrunk to three modules, which led to waning interest from investors, as this revised scope wouldn’t support a functional city. One former staff member described the downsized project as “uninvestable,” indicating that current expenditures are poorly tracked.
As the reality unfolds, massive foundations are being put in place for projects likely never to be finished, with local communities affected severely. There have even been reports of tribal members imprisoned for protesting against the construction that’s stalling. The ambitious airport proposals face their own hurdles, including obstacles like mountains blocking planned runways.
A Saudi official reflected on the challenges, stating: “We spent too much. We raced at 160 miles an hour. Now we’re in the red. We need to reconsider our priorities.” This sentiment applies not just to NEOM but also to other extravagant projects across Saudi Arabia, including a ski resort near NEOM and a luxury district in Riyadh.
MBS’s Vision 2030 aimed at transitioning the country’s economy from oil dependency, yet falling oil prices have made this approach problematic. Currently, only about 60% of the funding earmarked for this vision has been secured, prompting a shift in focus toward technology investments and smaller, more achievable projects.
A business leader underscored the pitfalls, labeling the situation as “the Dubai disease,” where overhyped, glamorous ideas overshadow practical capabilities.
