Saudi Arabia’s Economy Minister, Faisal Al Ibrahim, dismissed recent reports suggesting that the kingdom’s NEOM megaproject, valued at $1.5 trillion, is scaling back its ambitious plans.
Speaking at the World Economic Forum’s special meeting in Riyadh, Al Ibrahim stated, “All projects are moving full steam ahead. We set out to do something unprecedented, and we will deliver something that’s unprecedented.”
Earlier reports in Western media outlets had indicated a significant reduction in the scale of The Line project, a key component of NEOM.
The initial plan envisioned a 105-mile glass-walled city by 2030, but reports suggested it might be just 1.5 miles long by then, accommodating 300,000 people instead of the initially intended 1.5 million.
These adjustments, if true, raise concerns about NEOM’s financial viability, especially as the Public Investment Fund, Saudi Arabia’s sovereign wealth fund, has yet to approve NEOM’s budget for 2024.
Al Ibrahim reaffirmed that NEOM’s projects would be delivered according to plan, with decisions being made for “optimal economic impact.”
He emphasized the need to balance economic growth without overheating the economy or compromising national interests. Despite these adjustments, he assured that the scale and vision for NEOM remain unchanged.
Regarding investor confidence, Al Ibrahim noted growing interest in NEOM’s developments. He highlighted that these projects are novel and require substantial investment, which the government and the sovereign wealth fund are committed to providing.
He concluded that NEOM’s projects will be delivered to their intended scale, prioritizing economic impact and returns while mitigating risks.
