Saudi Arabia’s $1.5T futuristic city still on track despite scaling-back rumors amid money issues

Saudi Arabia’s ambitious NEOM megaproject, valued at $1.5 trillion, is not scaling back its plans, according to Economy Minister Faisal Al Ibrahim.

Addressing recent speculation at the World Economic Forum’s special meeting in Riyadh, Al Ibrahim affirmed that all projects within NEOM are moving forward at full speed.

Dismissing reports suggesting a significant reduction in the scope of The Line project — a futuristic city set to span 105 miles across the desert by 2030 — Al Ibrahim emphasized that the original vision remains intact.

Earlier rumors hinted at a drastic downsizing, with the proposed city shrinking to just 1.5 miles by 2030, a fraction of its initial scale.

While concerns over NEOM’s finances have surfaced, particularly regarding the approval of the project’s 2024 budget by Saudi Arabia’s sovereign wealth fund, Al Ibrahim assured that decisions are being made accordingly.

“We see feedback from the market, we see more interest from the investors and we’ll always prioritize to where we can optimize for optimal economic impact,” Al Ibrahim stated.

“We set out to do something unprecedented and we’re doing something unprecedented, and we will deliver something that’s unprecedented.”

Acknowledging the kingdom’s focus on diversifying its economy away from oil, Al Ibrahim highlighted the importance of delivering projects without jeopardizing economic stability.

Despite adjustments for economic prudence, he reiterated that NEOM’s overall scale and long-term vision remain unchanged.

Furthermore, Al Ibrahim emphasized the growing investor interest in NEOM’s developments, emphasizing the project’s modular design and its potential to catalyze new sectors from scratch.

“These projects will be delivered to their scale and in a manner that, in terms of priorities, suits the needs of the projects, the returns of these projects, and the economic impact,” Al Ibrahim affirmed.

“Keep in mind that these sectors didn’t exist in the past. They’re being built from scratch. They require some investment and going all in from the government and the sovereign wealth fund,” he said.