Saudi Arabia’s ambitious megaprojects under the leadership of Crown Prince Mohammed bin Salman (MBS) have encountered significant hurdles, threatening the timeline and scale of his flagship Vision 2030 initiatives. The crown prince’s grandiose plans, notably the NEOM city project and other futuristic ventures, are facing delays, cost overruns, and leadership changes, casting doubt on the kingdom’s ability to realize its transformative goals within the promised timelines.
At the heart of the Vision 2030 plan is NEOM, a futuristic city project in the vast desert of northwestern Saudi Arabia. Touted as a symbol of Saudi Arabia’s push toward diversification away from oil dependency, NEOM aims to reshape urban living and position the kingdom at the forefront of cutting-edge technologies and sustainable living. The centerpiece of NEOM is The Line, an ambitious city plan that consists of two mirrored skyscrapers extending 174 kilometers long, 200 meters wide, and 500 meters high. The vision for The Line is a car-free, vertical city designed to house nine million residents, offering a futuristic, sustainable alternative to traditional urban life.
Setbacks and Delays
Despite the grandeur of the vision, the project has struggled with significant setbacks. Tarek Qaddumi, the executive director of The Line Design Group, took the stage at the Cityscape real estate show in Saudi Arabia on November 12 to address concerns, strongly denying rumors of the project’s demise. According to Qaddumi, The Line would live up to its promises, despite the significant challenges it faces. He emphasized that although the project’s scale and ambition make it complex, it remains achievable.
However, during the same event, news broke of a key development: Nadhmi Al-Nasr, the CEO of NEOM, resigned from his position after more than five years at the helm. This resignation comes at a time when NEOM’s leadership has already seen a series of high-profile departures, a sign of the internal turmoil surrounding the execution of these monumental projects.
Challenges in Execution
The project’s challenges go beyond leadership changes. As was outlined in the initial Vision 2030 blueprint, the first phase of The Line was supposed to accommodate one million residents by 2030, expanding to nine million by 2045. The total cost of the project was estimated at a staggering $500 billion. However, recent reports suggest a scaled-back timeline and revised goals. According to Bloomberg, discussions are now focused on the possibility of constructing just 2.5 kilometers of The Line by 2030, with an estimated 300,000 residents living in the first phase. Additionally, the overall budget for the project has reportedly been slashed by 20%, raising further questions about the kingdom’s ability to meet its long-term objectives.
These delays are compounded by the complexity of constructing a fully sustainable, technologically advanced city from scratch in one of the world’s most arid and remote regions. The region, which is the size of Belgium, faces extreme heat, water scarcity, and other environmental challenges that make the creation of a self-sustaining city an enormous undertaking.
Other Major Projects Under Pressure
The Line is just one part of the broader NEOM initiative, which also includes the ski resort town of Trojena, which is slated to host the 2029 Asian Winter Games, and the luxury Red Sea resort of Sindalah, which was inaugurated in October. Both projects, like The Line, have been marked by ambitious timelines and equally challenging expectations. While Trojena and Sindalah are smaller in scale compared to The Line, they too face significant logistical and financial obstacles, with questions surrounding whether they will be ready in time for their respective target dates.
In addition to these high-profile ventures, Saudi Arabia is attempting to position itself as a global leader in renewable energy, artificial intelligence, and tourism. The government has been funding megaprojects through bonds and loans, including investments in other areas of NEOM, like the Oxagon, which is meant to be the world’s largest floating structure and the center of an advanced industrial hub.
Financing and Political Implications
As the setbacks continue to mount, Saudi Arabia is increasingly reliant on foreign investment to support its Vision 2030 plans. The government has already taken on substantial debt to fund these mega-projects, and with global oil prices subject to fluctuation, there are concerns about the sustainability of the kingdom’s ambitious plans. During a recent visit by French President Emmanuel Macron, the issue of financing and the ongoing challenges in the execution of these projects were expected to be discussed, particularly in light of the scaled-back targets.
MBS has faced criticism from some quarters for his seemingly boundless ambition, while others have applauded his vision for the future of Saudi Arabia. Yet, the continuous delays and financial re-evaluations have led to mounting pressure. There are concerns that the kingdom might struggle to balance its megaprojects with its need for economic diversification.
Looking Ahead: Vision 2030 at a Crossroads
The world will be watching to see whether Saudi Arabia can turn the tide and overcome the numerous obstacles that stand in the way of its ambitious transformation. The coming months will be critical in determining whether the kingdom’s megaprojects can overcome their current struggles and ultimately deliver on the promises made by MBS.
