Saudi Arabia has significantly scaled back its ambitions for the Neom megacity project, a futuristic initiative under Crown Prince Mohammed bin Salman originally projected to cost $500 billion and house 1.5 million residents by 2030. Current expectations have been adjusted to fewer than 300,000 residents. This adjustment comes amid challenges in attracting foreign investments, with the 2017-2022 average inflow standing at $17 billion, far below the 2030 target of $100 billion. The reduction in scope has led to implications such as increased domestic investment, a push for higher oil prices, and the potential postponement or cancellation of some projects.
Huge fiasco for Saudi Arabia's the Line project. https://t.co/fayyGMUWyl
Trillion-dollar Neom project scaled back. Lesson: Generating press for trillion dollar projects is easy; making them work is hard. https://t.co/qvwt19mPk7
Saudi Arabia's futuristic $500 billion Neom megacity just got a lot smaller ... for now, report says https://t.co/gXFxR7AKej
Headline | Saudi Arabia scales back ambitions for the development of its $1.5 Trillion project; this is the biggest urban city plan under its crown prince Prince Mohammed bin Salman. The government expected to have 1.5 million residents living in the city by 2030 #NEOM https://t.co/vHWkIw5uXV
The over-ambition of NEOM and the need to lower the crazy expectations were probably among the easiest analytical calls a regional observer could make. https://t.co/vfW38lrOM3
Sand castles "... By 2030, the government at one point hoped to have 1.5 million residents [...] Now, officials expect the development will house fewer than 300,000 residents by that time..." #OOTT #SaudiArabia https://t.co/MRYmKWhaLw
Saudi: Foreign investments are slow to arrive • 2017-22 average inflow = $17 bn • 2030 target = $100 bn Implications: • Saudi to invest more domestically, less abroad • To push for higher oil prices • To Postpone or scrap some projects https://t.co/URe1YyBT2Y https://t.co/EihNvMXHgX