The Saudi monarchs have reportedly scaled back their ambitious NEOM project, according to reports similar to those from the US business magazine Bloomberg. Initially estimated at $500 billion for the entire project, including a hydrogen power plant and a bridge over the Red Sea, the cost has now ballooned to three times that amount. This delay could damage Crown Prince Mohammed bin Salman’s reputation as it is a key part of his Vision 2030 program introduced in 2016.
One of the reasons for this scaling back is the increasing cost of the project. The delay in NEOM, which was initially projected to accommodate up to 1 million residents by 2030, could impact the overall success of the vision. However, these figures are still considered optimistic estimates, and budget negotiations for 2024 have likely played a part in the decision to slow down the project.
The consequences of this delay are already being felt with an international construction company reportedly pulling thousands of workers off the project. Despite this setback, there are plans to complete other NEOM districts by 2030 such as luxury tourism destination on Sindalah island in Red Sea. The royal family is promising to continue its investment in major events like hosting Asian Winter Games in 2029.
Overall, this scaling back raises questions about Saudi Arabia’s ability to impress the world with major events like Asian Winter Games and also about its economic and tourism goals for future growth.
