When Crown Prince Mohammed bin Salman envisioned the larger-than-life Neom City in Saudi Arabia, one wonders if he anticipated the never-ending challenges that would follow. From the very beginning, it was evident that turning Neom into reality would be a colossal task, and that prediction has proved accurate. The magnum opus, a $1.5 trillion project, seems nowhere near completion, with just five years remaining to align with Vision 2030. Despite scaling down plans, adjusting budgets, and even launching some projects like Sindalah, confidence in seeing Neom materialize in its entirety remains uncertain.
According to Moody’s Investors Service, Saudi Arabia is making “uneven” progress on its most ambitious infrastructure projects. Neom City encompasses several awe-inspiring developments like Trojena, Sindalah, Oxagon, and The Line, among many others. While Sindalah is the only one from this list that has been completed, others are moving at a snail’s pace due to engineering challenges, a shortfall in private investment, and lower oil prices.
Who would have thought that the Kingdom, home to one of the world’s richest sovereign wealth funds, would struggle to fuel its luxury tourism dream due to financial constraints? It seems that in today’s world, even royals aren’t spared the burden of fiscal realities. The coming year will likely witness budget cuts that could further affect the already sluggish progress of projects like Trojena, which was slated to include a sprawling ski resort in the desert.
Bloomberg reported that Saudi Arabia has asked consulting firms to carry out a strategic review of The Line, a futuristic city that’s part of Neom, to assess its feasibility.
“Financing for Vision 2030 investments, including the ambitious giga-projects, is dominated by PIF and its affiliated Saudi companies,” Moody’s analysts wrote. “A growing role for the private sector will be essential to complete many projects.”
Whether Neom ultimately rises as a beacon of futuristic brilliance or stands as a gleaming reminder of overreach, it will define the legacy of Vision 2030. For now, the dream glitters on the horizon, grand, unfinished, and uncertain.
