Apr 15, 2024

Saudis Scale Back Ambition for $1.5 Trillion Desert Project Neom

Saudi Arabia has significantly scaled back its aspirations for Neom's The Line, a central project in Crown Prince Mohammed bin Salman's economic diversification strategy, according to sources. Originally projected to house 1.5 million residents by 2030, the revised target is now less than 300,000. Furthermore, of the ambitious 170-kilometer development, only 2.4 kilometers are expected […] 
 Apr 15, 2024

Saudis Scale Back Ambition for $1.5 Trillion Desert Project Neom

Saudi Arabia has significantly scaled back its aspirations for Neom's The Line, a central project in Crown Prince Mohammed bin Salman's economic diversification strategy, according to sources. Originally projected to house 1.5 million residents by 2030, the revised target is now less than 300,000. Furthermore, of the ambitious 170-kilometer development, only 2.4 kilometers are expected to be completed by the 2030 deadline. Despite this, the overall goals for Neom, which includes industrial cities, ports, and tourist areas, remain unchanged. Notably, Sindalah Island within Neom is set to open as a luxury tourist destination this year. However, the delay in approving Neom's 2024 budget by Saudi’s sovereign wealth fund underscores growing financial concerns regarding the feasibility of these expansive projects under the Vision 2030 program. While some initiatives may extend beyond 2030, Saudi Arabia continues to invest in renewable energy projects within Neom, aiming to become a leader in green hydrogen production. These adjustments reflect a strategic reassessment as the kingdom seeks to balance ambitious developmental goals with economic realities.

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