One of the main pillars of Crown Prince Mohammed Bin Salman’s plan to revolutionize the Saudi economy is the Neom project, which is currently undergoing major modifications. Bloomberg’s sources claim that the project’s 2024 budget is still pending approval, which has caused changes to its original plans.
The 105-mile “The Line,” a future, self-sufficient metropolitan center, is one of the most notable aspects of the Neom concept. However, new rumors suggest that The Line’s construction is being substantially scaled back because of financial difficulties. By 2030, only a mile and a half, not the original 105 miles, should be constructed, housing a population that has been whittled down from the grandiose objective of 1.5 million to 300,000 people.
The choice of downgrading the scale of The Line’s construction will have a direct impact, as it is said that contractors are now pulling their workers from the field. The Neom project is estimated at $1.5 trillion, mostly funded by the Public Investment Fund (PIF), Saudi Arabia’s Sovereign Wealth Fund that falls under the control of the Crown Prince. Even though the cut on The Line has been effected, other features of the Neom project are still underway. This year will see the introduction of Sindalah luxury tourist island and preparations for the Winter Games in 2029 at Trojena also keep moving forward. Besides, this program still has a utility to act as a technical testing ground; it has had considerable investments in solar and wind farms that help to produce “green hydrogen” that can aid in the diversification of Saudi Arabia’s economy and reduce dependency on fossil fuel exports.
The creation of industries and human resources should come first, according to Saudi Finance Minister Mohammed Al Jadaan, who also hinted that postponements or cancellations of some Neom project components may be necessary to further the larger objectives of the economy. The Neom project as a whole continues to be a focal point in Saudi Arabia’s efforts to reform its economy and lessen its reliance on oil exports, even though The Line’s cutback reflects budgetary restrictions.
