Saudi Arabia’s ambitious Neom megacity initiative recently extended its promotional efforts to China. The Neom delegation embarked on visits to Beijing, Shanghai, and Hong Kong with the aim of attracting Chinese investment into the project.
Despite the absence of immediate deal announcements, participants at the events reported that the presentations offered a clearer understanding of the enigmatic development. According to one event-goer, the road show succeeded in making Neom seem ‘less enigmatic.’
Leonard Chan, head of the Hong Kong Innovative Technology Development Association and attendee, shared that the response to Neom was generally neutral. He expressed personal interest in visiting the city for its innovative appeal, comparing it to a creation from the game ‘SimCity.’
An exclusive showcase offered visitors an ‘immersive experience,’ featuring several aspects of Neom, such as The Line, a 105-mile city of the future; Oxagon, aiming to revolutionize industrial concepts; Trojena, a mountain resort; and Sindalah, a luxurious Red Sea island set to open this year.
Neom representatives did not comment on recent speculation that the colossal desert project might be downsizing its scope. Reports suggested a reduction in the estimated number of residents for The Line, from an initial 1.5 million by 2030 to less than 300,000. Tarek Qaddumi, Neom’s executive director, assured that the long-term population goal of 9 million would be met eventually.
Concerns have surfaced over the financial implications of the project, which is part of Saudi Crown Prince Mohammed bin Salman’s Vision 2030 and could cost up to $500 billion. The Saudi government has begun borrowing to finance Neom and other related megaprojects. Moreover, Neom is considering issuing bonds for the first time, potentially raising up to $1.3 billion through the sale of Islamic bonds, known as sukuk.
The Neom promotional campaign has also made stops in major cities across the globe, including Seoul, Tokyo, Singapore, New York City, Boston, Washington, D.C., Miami, Los Angeles, San Francisco, Paris, Berlin, and London, in an effort to secure international backing.