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### Introduction
The Neom project in Saudi Arabia is recognized as one of the largest and most ambitious civil engineering projects in the world. This project, a central part of Saudi Crown Prince Mohammed bin Salman's (MBS) Vision 2030 initiative, aims to transform the country's economic structure and reduce its dependency on oil. This report examines the various details and challenges associated with this massive project.
### Key Details and Expanded Information
1. Neom Project
- Overview: Neom is the largest civil engineering project in the world and a flagship component of Saudi Arabia's Vision 2030, led by Crown Prince Mohammed bin Salman. The project includes various components such as The Line, a linear city stretching 170 kilometers.
- Duration: The project is expected to take over 50 years to complete. Initial expectations to complete Neom by 2030 have been dismissed, emphasizing the long-term nature of this ambitious endeavor.
2. Long-Term Goals
- Statement by Finance Minister: Mohammed bin Abdullah Al-Jadaan, the Saudi Minister of Finance, emphasized that Neom is a long-term plan. He highlighted that expecting the project to be built, operated, and profitable within a few years is unrealistic.
- Short to Medium-Term Returns: While some individual projects within Neom may generate returns in the short to medium term, the overall program is designed for long-term development.
3. Scaled Back Ambitions
- Population Targets: Originally, the Saudi government aimed to have 1.5 million residents living in The Line by 2030. However, this target has been scaled back to fewer than 300,000 residents.
- Project Phasing: Sources have indicated that The Line will be built in phases or with a shorter initial length compared to the original 170-kilometer plan.
4. Challenges and Criticisms
- Migrant Worker Deaths: There have been allegations that 21,000 migrant workers have died in Saudi Arabia since the project began in 2016. These allegations have been met with silence from civil engineering firms involved in Neom.
- Government Response: Saudi authorities have described the allegations as "misinformation" and continue to promote the project's benefits.
5. Project Progress
- Phase One of The Line: In November 2024, it was announced that Mott MacDonald is working on Phase One of The Line. The company will manage city infrastructure, including both vertical and horizontal structures and city utility systems.
- Leadership Changes: The CEO of Neom abruptly stepped down in November 2024 after six years in the role, with no explanation provided for this departure.
6. Economic Context
- Budget Deficit: Saudi Arabia has forecast a $26.8 billion budget deficit for 2025, representing about 2.3% of GDP. Despite this, the Kingdom maintains a strong financial position and continues to invest heavily in Vision 2030 projects.
- Economic Diversification: Neom is a key element in Saudi Arabia's strategy to diversify its economy away from oil. The project aims to attract investment in sectors such as tourism, entertainment, and infrastructure.
7. Growth Projections
- Recent Economic Performance: The Saudi economy has experienced contractions in recent years due to declining global oil prices and the transformative changes underway. In 2022, Saudi Arabia was the fastest-growing G20 economy, but its GDP contracted in 2023.
- Future Outlook: The Saudi government has forecast modest growth of 0.8% for the current year, with expectations of sharp acceleration in 2025 as non-oil activities begin to drive economic growth.
### Conclusion
The Neom project is a monumental and highly ambitious initiative that reflects Saudi Arabia's broader vision for economic transformation.
While the project faces significant challenges and has seen adjustments to its original plans, its potential to reshape the Kingdom's economy and infrastructure over the next several decades remains a focal point of national development efforts.