Next Dubai or Dud? All about NEOM, Saudi Arabia’s New Megacity
What makes NEOM special?
In 2017 Saudi Arabia unveiled its ambitious dream project — N.E.O.M a brand-new Next-Generation Smart City, on the coast of the Red Sea. Said to be the “first of its kind” in the world, NEOM is derived from the Ancient Greek prefix “Neo” meaning “New” and the Arabic fourth letter “Mustaqbal” meaning “Future”. With an area of almost 27,000 sq./km. NEOM aims to become the world’s leading port and unrivaled destination for tourism, business, and urban living.
It is the Saudi Kingdom’s first ambitious attempt at building the city of the future from scratch. A model city that will serve as a paragon for cities across the world. A multi-purpose habitat that will attract not just tourists but redefine urban, environmental and social living.
It will be divided into three slickly defined zones by the names of “The Line”, “Octagon” and “Trojena”.
ong urban settlement located between the Red Sea and Sarawat Mountain Range in Saudi Arabia. It aims to be a completely pedestrianized city with no cars, streets, and no carbon emissions The Line will be 170 kilometers and is planned to have 1 million residents. The city would be divided into nodes. All daily services would be reachable within a 5-minute walk. The city will also be powered entirely by renewable energy. The Line will consist of three layers, including one on the surface for pedestrians, one underground for infrastructure, and another underground for transportation. The transportation layer will include a very fast rail system, which would allow people to go from one side of the city to the other side in 20 minutes, reaching a speed of 512 km/h, faster than existing high-speed rail at the time of announcement. Artificial intelligence will monitor the city and use predictive and data models to figure out ways to improve daily life for citizens in The Line. 95% of the settlement’s natural environment will be left unaffected and will be seamlessly integrated vis-à-vis AI-Enabled Nature Monitoring Systems.
The “Octagon” will be a “floating industrial port” that will be the largest of its kind on Earth. It will have an automated & integrated port & supply chain powered entirely by Green Renewable Energy located right next to the Suez Canal through which 13% of the world’s trade passes. It will also be a research center for generating new solutions to clean and efficient manufacturing and global trade.
“Trojena” represents the Saudi Kingdom’s efforts at creating the “ultimate tourist get-away”. With its mountainous landscape and temperate weather (falling below zero) and 50 km away from the Gulf of Aqaba (close to the Suez Canal), the mountains will be made a hotbed of Eco-Tourism and Sustainable Living. Trojena will offer year-round outdoor skiing and adventure sports to be completed in 2026, an unrivaled experience, and a global landmark for the Kingdom of Saudi Arabia. Highlights include a stunning man-made freshwater lake and an underground environmental habitat.
Source:- NEOM Website, Saudi Arabia
Reforms? Verdict?
In the wake of the Russo-Ukraine War and the global spike in Energy and Food Prices, the onus on Energy Transition has risen. Given the finitude and unsustainability of fossil fuels, Saudi Arabia has pledged to reduce its dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation, and tourism. This along with goals to strengthen the Kingdom’s image internationally play into the Kingdom’s 2030 Agenda.
NEOM’s ambitions are well-placed at a time when change is imminent for the Kingdom. The Kingdom’s shift to a non-oil-based future coincides with the energy transition and the need to develop the commercial and service sectors. Decisions made now will affect the economy and will shape Saudi Arabia’s future role in global politics. The project relies on substantial government funding through Saudi Arabia’s Public Investment fund and FDI to stimulate the country’s commercial and service sectors. While laying out the contours for a new economic future the success of the project will largely have to depend on the country’s fiscal and political capacity to channel and manage large streams of investment viably. A common critique directed at Saudi “Megaprojects” is a top-down approach based on the ability to source and channel heavy investment from Sovereign Funds (Public Investment Fund, Saudi Arabia) and Private Actors. This inadvertently leads to cost overruns, reduced financial returns, and poor protection against economic downturns. The Kingdom has succeeded in identifying its competitive advantages in the sectors of Business, Commerce, and Tourism. Experts say a deeper investment in Education and Human Capital should underpin serious transformation.
Perhaps the proposed megacity’s most prominent advantage is its geographic location. Located north of the Red Sea and east of Egypt NEOM is a 4-hour flight away from 40% of the globe. This gives it a favorable position across commercial and trade lines and a convenient tourist destination. While the success of the project is yet to be foretold the Kingdom’s move to building alternate economic complexes in anticipation of future trends indicates a commendable step towards fundamental reforms.
The Saudi administration also faces criticism on account of the attempt to evict the 20,000-strong Howeitat Tribe from its centuries-old homeland that falls within the territory of NEOM. The tribe is resisting eviction. When leaders of the tribe protested, several from the leadership found themselves behind bars. The most vocal critic of them all, Alya Abutayah Alhwaiti, lost his life. While much of the negative publicity has been attempted to be countered an air of controversy continues to haunt NEOM. In the future, a more reconciliatory solution ought to be proposed to conclude matters amicably.
Promising at its best and delusional at its worst the outcome of the NEOM Megacity Project is yet to be determined. As an Oil-Rich Nation and prominent player in Middle-East Saudi Arabia finds itself at a crossroads. NEOM represents the nation’s attempt at keeping pace with altering global realities such as Climate Change, Economic Security, and Sustainability. While conceived at the right time proper allocation, fiscal planning, and economic navigation are needed to steer the project in the right direction and Saudi Arabia on the right path.