Saudi Arabia’s $1+ trillion futuristic megacity is facing challenges

Saudi Arabia’s Neom, an ambitious metropolis in the desert defined by cutting-edge technology and architecture, is running into major issues shortly after breaking ground, according to a new Wall Street Journal report.

Some quick background: Plans for Neom, first announced by Saudi Crown Prince Mohammed bin Salman in 2017, are headlined by a project called The Line – a pair of Empire State Building-height skyscrapers stretching 106 miles long (the length of Delaware) that would represent the largest modern structure in the world.

Other planned features of the city include a mountain ski resort, a business district floating on the Red Sea, and a massive all-inclusive coastal resort.

But the dream of Neom is colliding with reality. The new WSJ report details how the project has been plagued by soaring costs and ever-present delays, many of which were shielded from the Saudi crown prince by Neom executives and their McKinsey consultants.

• Saudi officials started out with total cost estimations of ~$500 billion and a projected completion date of 2045.
• But, after spending $50+ billion on Neom’s construction, officials now project the city will require $8.8 trillion to build to its “end-state” by 2080.

👀 Looking ahead…Saudi Arabia’s current aim is to open the first half-mile chunk of The Line – topped by a sports stadium – in time for the nation to host the 2034 FIFA World Cup.