In the vast deserts of northwest Saudi Arabia, construction on “The Line” is underway. This ambitious urban project, part of the NEOM initiative, is set to transform living spaces by housing 9 million people in futuristic skyscrapers stretching 106 miles.
NEOM, spearheaded by Crown Prince Mohammed bin Salman, is a cornerstone of Vision 2030, aiming to diversify Saudi Arabia’s economy beyond oil. The project, with costs potentially reaching $1.5 trillion, highlights the kingdom’s push for innovation and economic transformation.
Recently, Saudi Arabia has shifted its investment focus inward, emphasizing domestic projects as global oil prices remain low. This shift comes amid rising budget deficits and revised economic growth forecasts, projecting a deficit of $21.1 billion next year with increased public spending.
Despite concerns over sustainability, Finance Minister Mohammed Al-Jadaan remains confident in Saudi Arabia’s fiscal strategy, citing significant growth in non-oil revenues and robust foreign currency reserves.
While some NEOM projects have been scaled back, such as reducing “The Line” from 106 miles to an initial 1.5 miles, the long-term vision remains intact. Critics question the feasibility of these megaprojects, but proponents see them as steps towards a diversified and resilient economy.
Tarik Solomon of the American Chamber of Commerce in Saudi Arabia emphasizes the importance of practical improvements in infrastructure over extravagant projects, advocating for impactful innovation that addresses everyday needs.