The splashy Saudi mega-project NEOM is chasing Chinese funds

The bigwigs behind a Saudi megacity, dogged by questions about its viability, have wrapped up a tour of wooing Chinese investors, outlining plans for a futuristic ski resort and 105 miles of skyscrapers.

The roadshow for NEOM, brainchild of de facto ruler Crown Prince Mohammed bin Salman, traveled from Beijing to Shanghai to Hong Kong, where potential business partners flocked to a swanky museum for two days to view dazzling displays at various stages of development.

No major deals were announced, and top project officials did not address recent reports that NEOM’s ambitious construction and population targets are being rolled back.

But they did offer a glimpse into how NEOM has evolved since Prince Mohammed first announced it in 2017, raising eyebrows over its $500 billion price tag.

NEOM Executive Director Tarek Qaddumi led journalists through an exhibition at Hong Kong’s M+ museum on Friday, discussing NEOM’s goal of balancing “nature conservation, human viability and economic prosperity.”

Also read

‘Collecting data’: Latin American AI startups are transforming agriculture

“NEOM is a very expansive vision… It is an initiative that is probably the most exciting and forward-looking in the 21st century,” he said.

The exhibition helped make NEOM “less mysterious”, and reactions at an invitation-only reception were “largely neutral”, said Leonard Chan, chairman of the Hong Kong Innovative Technology Development Association.

However, he demurred when discussing whether he was sold on living at the center of NEOM, known as The Line, two mirror-encased skyscrapers that stretch 170 kilometers (105 miles) across the Saudi desert.

“I visit for fun, but I’m not going to live there. It’s like something out of SimCity,” he told AFP.

“If I live there, I might not want to leave. It’s like I’m isolated from the world and I just can’t stand it.”

Also read

Ivory Coast is to blame behind the growth, which fuels the debate

Plato Yip, chairman of Hong Kong environmental group Friends of the Earth, which is exploring green hydrogen deals with NEOM, similarly said The Line “feels like being locked inside, even though it can be very comfortable.”

Shorten ‘The Line’?

Unveiling The Line in 2022, Prince Mohammed said the population would surpass one million by 2030, before rising to nine million by 2045.

However, Bloomberg reported this month that revised projections would see only 300,000 people living in The Line by the end of the decade, and that only 1.5 miles of the project would be completed by then.

NEOM did not respond to a request for comment on the Bloomberg report.

Standing Friday near a model of The Line — a shiny blade cutting inland from the Red Sea — Qaddumi said only that the population goal of nine million would be reached “over time.”

He described features of The Line, including a 650-metre-long “cantilever” jutting out into the Gulf of Aqaba, as well as a “hidden marina”.

Also read

Stellantis boss Tavares defends pay increase ahead of shareholder vote

He also said tunnels are under construction that will allow The Line to pass through desert mountains and there will be an airport expected to welcome 100 million passengers a year and provide a “seamless approach” to the city.

“You get off the plane and walk into the city. We eliminate all the hassle of going through an airport, whether it’s immigration or security or even… receiving your luggage at the airport. Your luggage is taken to your direct address.”

Apart from The Line, Qaddumi said the luxury yacht island Sindalah was “under full construction” and would be “completed by the end of the year, ready for visitors to spend some time in NEOM”.

Trojena, the futuristic ski resort with an artificial lake and 36 kilometers of slopes, is due to be completed before 2029, when it will host the Asian Winter Games.

Other elements of NEOM, including some waterfront residential developments in the Oxagon region, will be built “after 2030,” Qaddumi said.

Also read

Swiss watch brands are making time for India

Courting investors

NEOM’s investor roadshow also included stops in Europe and the United States.

The megacity is making progress alongside other major development projects launched as part of Vision 2030, Prince Mohammed’s bid to position the world’s largest crude oil exporter for an eventual post-oil future.

Last year, the Gulf kingdom emerged as the sole bidder to host the 2034 World Cup, meaning it now has a decade to build the necessary stadiums and increase its accommodation and transport capacity.

In December, Finance Minister Mohammed al-Jadaan said officials had decided to push the timeframe for some major projects beyond 2030, without specifying which ones.

“Certain projects can be extended for three years – so it is 2033 – some will be extended until 2035, some will be extended even beyond that and some will be rationalized,” he said.

Robert Mogielnicki of the Arab Gulf States Institute in Washington said projects related to specific events would likely be prioritized.

Also read

Market Correction: Trump Stocks Plunge After Strong Debut

“The Saudis would not be able to move 100 miles per hour in all directions indefinitely on the development front,” he said, adding that Riyadh needs consistent, sustainable growth in foreign investment from various sectors.

“It’s no secret that they haven’t achieved that yet.”

Source: AFP