In an abrupt change of trajectory, Saudi Arabia’s prediction for the population of its ambitious $500 billion Neom project has been drastically reduced. An initially anticipated swell of 1.5 million occupants residing in the ultramodern city known as “The Line” by 2030 is being downgraded – expectations have plummeted to less than 300,000 residents, as disclosed by insiders, aligning with Bloomberg’s account.
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A revision has occurred in the projection for the number of residents in Saudi Arabia’s visionary Neom city project by the 2030 timeline. Bloomberg’s coverage of the venture paints the government’s initial goal of housing 1.5 million citizens within the technologically advanced city, “The Line.” However, recent recalculations reveal that the resident count is more likely to be under 300,000, states Bloomberg, supplanting the number given by sources privy to the project’s developments.
Promoted as a “cognitive city,” The Line is architecturally designed to extend over 170 kilometers of arid land in the vicinity of Saudi Arabia’s northwest Red Sea region. Still, the locale that will be completed by 2030 is projected, according to an insider, to be just 2.4 kilometers.
The grand vision involves Neom megacity’s $500 billion investment, spanning 26,500 square kilometers. It’s part of the strategic plan – Vision 2030 – conceived by the Saudi Crown Prince Mohammed bin Salman. The intention is to steer the kingdom’s economic interests away from being solely reliant on oil revenues towards tech-driven innovation.
Yet, Neom is not singular – it is part of a larger scheme of ongoing intense national projects. The ventures come with immense expense leading the Public Investment Fund (Saudi Arabia’s sovereign wealth fund) to shoulder the enormous financial burden imposed by the projects that could cost tens of billions of dollars each.
In January, the PIF’s disclosed its funds had depleted to the lowest since December 2020. The depletion has compelled the government to revert to an old strategy of borrowing to raise funds, The Wall Street Journal reported. Concurrently, there have been reports of the kingdom planning to offload additional shares of the state oil company – Saudi Aramco this year.
Along with his colossal projects, Saudi Arabia has been investing substantially in other sectors such as sports. A report from The Guardian in July 2023 estimated the kingdom’s expenditure on sports deals since 2021 to be at least $6.3 billion. This includes backing a significant merger between the PGA Tour and LIV Golf and luring global soccer stars away from European leagues with lucrative salaries.
“The sheer magnitude of attempted projects here is staggering,” commented Tim Callen, a guest scholar at the Arab Gulf States Institute think tank, articulating his thoughts to The Journal.
