Digital rendering of NEOM’s The Line project in Saudi Arabia.
The Line Project
Saudi Arabia’s economy minister has denied recent reports that the kingdom’s $1.5 trillion NEOM megaproject, a futuristic desert development on the Red Sea coast, is scaling back some of its plans.
“All projects are moving forward at full speed,” Faisal Al Ibrahim told our reporter at a special meeting of the World Economic Forum in Riyadh on Monday.
“We started something unprecedented, we are doing something unprecedented, and we will deliver something unprecedented.”
In early April, Western media reported that The Line project, a glass city planned to extend 165 miles across the desert by 2030, would be only 2.5 miles long by then, or 98.6% There were reports that there would be a reduction in the amount of . Bloomberg first reported that the Saudi government’s original plan for 1.5 million people to live in the Line by 2030 has been cut to 300,000, citing anonymous sources familiar with the matter.
Digital rendering of NEOM’s The Line project in Saudi Arabia
The Line, NEOM
The plan, which is said to be a downsizing, at least in the medium term, comes amid reports of concerns over the finances of NEOM, which is part of Saudi Arabia’s broader Vision 2030 initiative to diversify the economy away from oil. According to a report from Bloomberg, Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, has not yet approved NEOM’s 2024 budget.
Al-Ibrahim stressed that the project will be implemented as planned, but with the condition that decisions will be made taking into account “optimal economic impact”.
“After looking at the feedback from the market and seeing increased interest from investors, we will continue to prioritize where we can optimize for the best economic impact,” he said.
“Currently, the Kingdom’s economy is growing rapidly, but we do not want to overheat it. We do not want to carry out these projects at the expense of excessive imports against our interests. We will continue to deliver on these projects to meet these priorities and deliver these projects in a way that is optimal and healthy for our economy and healthy non-oil growth within it. It’s a way to make an impact. ”
Still, the minister emphasized, “NEOM and the project continue to be on the planned scale. There is no change in scale.”
“This is a long-term project with modular design,” he said. “The remaining megaprojects exist to have a specific impact in a specific area.”
NEOM political map of Saudi Arabia’s $500 billion megacity project along the Red Sea coast. Location of a smart tourist city with an autonomous judicial system. English label. vector.
Asked what message the reported timeline and scale changes would send to private investors, Al-Ibrahim said decisions would be made in line with the needs and returns of the project, adding that within NEOM said all developments are attracting increased investor interest.
“Keep in mind that these sectors didn’t exist in the past. They’re being built from the ground up. It’s going to take some investment and the collective efforts of governments and sovereign wealth funds. We need to work on it.”
“And we’re seeing an increase in investor interest in all of these projects, which, depending on their size, are commensurate with project needs, project benefits and economic impact in terms of priorities. It is carried out in a manner that minimizes leakage and also minimizes the risk of overheating. ”
