How Saudi Arabia’s vanity project is costing Kingdom trillions after being plagued with blunders & 100k missing workers
SAUDI Arabia’s megalomaniac NEOM was hailed as a bold vision for the future but its “unrealistic” plans may be crashing down amid a sea of controversies, an expert has said. The megacity – costing the Kingdom trillions – promises to transform the nation’s economy, reduce its reliance on oil, and position it as a global powerhouse in innovation. Saudi Arabia is investing billions on several megalomaniac projects to be completed by the end of the decadeAFP NEOMWith Vision 2030, Saudi Arabia wants to expand its economy beyond oil[/caption] AFPAn inside view of The Line[/caption] Giles Pendleton FRICSBut major setbacks will now see The Line stretching a measly 2.4km[/caption] The major development hopes to become a symbol of Saudi Arabia’s desperate aspirations under Crown Prince Mohammed bin Salman’s Vision 2030. Through massive investments, the nation revealed its 15 wildly ambitious projects fund
SAUDI Arabia’s megalomaniac NEOM was hailed as a bold vision for the future but its “unrealistic” plans may be crashing down amid a sea of controversies, an expert has said.
The megacity – costing the Kingdom trillions – promises to transform the nation’s economy, reduce its reliance on oil, and position it as a global powerhouse in innovation.
The major development hopes to become a symbol of Saudi Arabia’s desperate aspirations under Crown Prince Mohammed bin Salman’s Vision 2030.
Through massive investments, the nation revealed its 15 wildly ambitious projects funded by oil billions at an unprecedented rate.
Touting with technology that is yet to be invented, the Kingdom aims to build the world’s tallest skyscrapers, futuristic cities and even a fake moon.
But NEOM’s light seems to be dimming.
Not only has its flagship project drastically scaled back, but NEOM has been overshadowed by a series of controversies that raised serious questions about its feasibility and ethical foundations.
And as the clock ticks closer to the end of the decade, it seems that Saudi Arabia might not become the Middle East’s futuristic powerhouse anytime soon.
Dr Frederic Schneider, an independent consultant on post-oil economic transitions in the Gulf region, told The Sun that Vision 2030 and NEOM were seen as overly ambitious and nearly impossible to achieve from the very start.
He said: “When Vision 2030 was first announced there was a lot of talk about that it was hugely ambitious.
“Many people from the start said, ‘okay, this is not only ambitious, that’s almost impossible’.”
A GAMBLE OF TRILLIONS
Dr Schneider noted that many of these grand projects, including NEOM and “The Line,” face significant challenges, particularly in terms of funding and actual implementation.
Even for Saudi Arabia, the costs are overwhelming with The Line predicted to be costing The Kingdon £2 trillion.
He said: “The line, for example, was budgeted for 500 billion. Estimates go up fourfold that cost if you are realistic. So that would be 2 trillion for the line alone.”
As one of the most expensive development projects in history, NEOM represents a colossal financial gamble for Saudi Arabia.
This financial burden is compounded by the difficulty in attracting foreign investments, as potential investors are wary of uncertain returns.
The economic risks are compounded by global uncertainties and shifting economic trends that could undermine NEOM’s long-term sustainability.
If the project fails to live up to its lofty goals, it risks becoming a costly white elephant — a futuristic ghost city in the desert.
It comes as NEOM’s major flagship project has been dramatically reduced.
END OF THE LINE
The Line was set to be home to 1.5 million residents by 2030 – but will now house 300,000 and not even reach two miles.
Saudi Crown Prince Mohammed bin Salman Al Saud’s £1trillion city in the desert was promised to be a “civilisational revolution”.
It was the crown jewel in the Saudi government’s Vision 2030 – a program launched to increase diversification economically, socially, and culturally, in line with the Crown Prince’s vision.
But the giga-project touted as moving Saudi Arabia‘s economy away from its reliance on oil may not proceed as expected, according to new reports seen by The Telegraph.
Despite plans for the mirrored city to extend 106 miles and house 1.5 million residents by the end of the decade, it is now looking more likely that it will stretch a mere 1.6 miles and house only 300,000 people by 2030.
That’s a shocking 1 per cent of its initial dimensions.
The “unsurprising” scale-down is said by experts to reflect the Saudi government’s struggles to win over foreign investors, as well as the nation’s vulnerability to oil prices.
Dr Schneider told The Sun: “I was surprised that it took them so long to announce these scale backs.”
The expert added that the Gulf region, including Saudi Arabia, has a history of announcing grand projects that either fail to materialise or are drastically scaled back.
Dr Schneider referenced previous initiatives like King Abdullah’s Economic City and various projects in other Gulf countries that never reached their ambitious goals – often ending in failure or significantly reduced scope.
He said: “There are plans in Kuwait – Medinat al Harir – that also never materialized. And all of these are very similar in style to NEOM.”
The repeated failure to deliver on such grand promises, combined with past incidents like the Ritz-Carlton arrests in 2017, has eroded investor confidence.
This is particularly problematic for NEOM, where the risks are high and the returns are uncertain, Dr Schneider said.
The consultant went on to say that Saudi Arabia might be better off focusing on more realistic and sustainable development within existing cities, like Riyadh, which is already progressing well.
I was actually surprised that it took them so long to announce these scale backs. Dr Frederic Schneider
The pursuit of these “white elephant” projects, he said, reflects a desire for the Crown Prince to leave a lasting legacy, but they may ultimately prove to be economically and politically costly.
Dr Schneider explained: “Instead of following this pipe dream, why don’t we build on existing cities and existing advantages?
“They [Saudis] will try to not pay anything to cut down on the costs while publicly going on with it, but they should probably cut their losses right now, right here and go with more traditional developments.”
‘BUILT ON BLOOD’
Beneath NEOM’s glitzy facade lies a story of threats, forced evictions and bloodshed that cast a dark shadow over Saudi’s vanity project.
Many developments have faced fierce criticism over human rights abuses, where tribes were shoved out of their homeland, imprisoned or executed.
At least 20,000 members of the Huwaitat tribe face eviction, with no information about where they will live in the future.
For centuries, this indigenous community lived in the area designated for NEOM’s construction.
But what followed was a harsh crackdown on those who resisted leaving their homes.
The most tragic incident involved the killing of Abdul Rahim al-Howeiti, a prominent tribal leader who opposed the forced removals.
His death at the hands of Saudi security forces in 2020 became a stark symbol of the lengths to which the kingdom was willing to go to push the project forward.
One campaigner claimed “Neom is built on Saudi blood”.
Authorities in the port city of Jeddah also demolished many houses to implement Saudi’s development plans – with thousands of locals evicted illegally.
Nader Hijazi – who decided to remain anonymous – grew up in Aziziyah, one of around 63 communities devastated by the demolitions.
His father’s house was demolished in 2021, and he received less than a month’s notice.
Top 5 blunders plaguing Neom project
by Juliana Cruz Lima, Foreign News Reporter
Saudi Arabia’s NEOM project, despite its ambitious vision, has been criticized for several major blunders that have raised concerns about its feasibility, ethics, and overall execution.
Here are the top five major blunders associated with the project:
Forced Displacement of Indigenous Communities: One of the most significant controversies surrounding NEOM is the forced displacement of the Huwaitat tribe.
This indigenous community, which has lived in the area for centuries, was forcibly removed from their ancestral lands to make way for the development of the mega-city.
The Saudi government’s crackdown on those who resisted, including the killing of a tribal leader, Abdul Rahim al-Howeiti, has drawn widespread condemnation from human rights organisations.
This blunder not only sparked international outrage but also tainted NEOM’s image as a forward-thinking, humane project.
Environmental Impact and Sustainability Concerns: NEOM has been marketed as an environmentally sustainable city, but the environmental impact of such a massive development is a major concern.
The project’s scale—covering over 26,500 square kilometers—poses significant risks to local ecosystems, particularly in the Red Sea, which is home to rich marine biodiversity.
Critics argue that the construction of artificial islands and extensive urbanisation could lead to irreversible ecological damage.
The enormous water and energy demands required to maintain a green city in the desert also raise questions about the project’s sustainability.
Economic Viability and Cost Overruns: NEOM is one of the most expensive development projects in history.
But there are serious doubts about its economic viability. Critics question whether the project can attract the necessary foreign investment and whether it will generate sufficient returns to justify the enormous expenditure.
The economic risks are further compounded by potential cost overruns and delays, which are common in megaprojects of this scale.
This financial gamble has led some to worry that NEOM could become a costly white elephant if it fails to meet its ambitious goals.
Technological Overreach and Ethical Concerns: NEOM is envisioned as a high-tech city, heavily reliant on artificial intelligence, robotics, and extensive surveillance systems.
While this technological ambition is central to NEOM’s identity, it also raises significant ethical concerns. The level of surveillance planned for the city could lead to unprecedented control over residents’ lives, sparking fears about privacy and civil liberties.
The lack of transparency about how AI will be used, coupled with concerns about job displacement, has also led to criticism that NEOM’s technological vision may be more dystopian than utopian.
Cultural and Social Disconnect: NEOM’s vision of a futuristic, liberalized society clashes sharply with Saudi Arabia’s deeply conservative cultural norms.
The project plans to introduce mixed-gender sports, entertainment events, and other liberal lifestyle elements that are rare in the kingdom.
This cultural shift has raised concerns about a potential clash between NEOM’s globalised vision and the traditional values of Saudi society.
The disconnect between the project’s ambitions and the broader cultural context has led to skepticism about whether NEOM can truly integrate into Saudi Arabia’s social fabric without causing significant friction.
Hijazi said the photographs he saw of his previous neighbourhood were terrible, resembling a warzone.
He told the BBC: “They’re waging a war on people, a war on our identities.”
Jeed Basyouni, Middle East director of the human rights organisation Reprieve, told DW: “We have seen, time and again, that anyone who disagrees with the crown prince, or gets in his way, risks being sentenced to jail or to death.”
In May, an ex-intelligence officer revealed how Saudi authorities allowed the use of lethal force to clear land for The Line.
Col Rabih Alenezi told the BBC he was given the order to drive out residents of a tribe in the Gulf state so that NEOM’s flagship project could be built.
After that, one of them was shot and murdered for protesting against eviction.
He said the April 2020 order stated the Huwaitat was made up of “many rebels” and “whoever continues to resist [eviction] should be killed, so it licensed the use of lethal force against whoever stayed in their home”.
Both the Neom management and the Saudi government declined to comment to the BBC.
CULTURAL CLASHES & WORK TENSIONS
NEOM’s vision of a futuristic, liberalised society contrasts sharply with Saudi Arabia’s deeply conservative cultural norms.
The project plans to introduce mixed-gender sports, entertainment events, and other liberal lifestyle elements that are rare in the kingdom.
But this cultural shift has sparked concerns about a potential clash between the project’s globalised vision and the traditional values of Saudi society.
There are also ongoing worries about the treatment of labourers involved in NEOM’s construction, particularly the migrant workers who make up a significant portion of the workforce.
Because of Saudi Arabia’s murky past with regard to labour rights, there are concerns that the workers constructing NEOM may be subjected to mistreatment and unfavourable working conditions.
‘MISSING WORKERS’
There are serious allegations that a significant number of migrant workers employed in the construction of Saudi Arabia’s NEOM project may have disappeared or remain unaccounted for.
This issue is part of a broader concern about labor rights and the treatment of migrant workers in the Gulf region, particularly within large-scale construction projects like NEOM.
Saudi Arabia, like many other Gulf countries, heavily relies on migrant labour for its ambitious construction endeavours.
These workers, often from South Asia, Africa, and other developing regions, are typically employed under the Kafala system—a sponsorship system widely criticised for creating conditions akin to modern-day slavery.
Under this system, workers are tied to their employers, who hold significant control over their movements, their ability to change jobs, and even when they can return to their home countries.
Reports have emerged alleging that as many as 100,000 migrant workers have gone missing during the construction of NEOM.
These workers are believed to have endured harsh working conditions, long hours, and inadequate living accommodations.
Some accounts suggest that these workers were either deported without proper documentation, abandoned without support, or, in the worst cases, died due to poor working conditions and a lack of adequate medical care.
Human rights organisations have been vocal about the potential abuses linked to NEOM and other major projects in Saudi Arabia, calling for greater transparency and improved protection of workers’ rights.
But due to the tight control the Saudi government maintains over information and the movement of people within the country, these organisations face significant barriers in confirming the extent of the reported abuses.
[The Saudis] should probably cut their losses right now, right here and go with more traditional developments Dr Frederic Schneider
The Saudi government has generally denied or downplayed allegations of widespread worker mistreatment, pointing to reforms it has made to the Kafala system and its Vision 2030 plan, which includes efforts to improve labour rights.
The displacement of local populations and potential worker abuses, Dr Schneider added, could further damage Saudi Arabia’s reputation and deter investors.
He said: “Investors will see that probably there’s a big risk they have to attach to that project.”
TECHNOLOGY & ETHICAL DILEMMAS
NEOM is designed to be a technological marvel, with extensive use of artificial intelligence, robotics, and surveillance systems.
But this high-tech vision raises significant ethical questions.
Critics warn that the level of surveillance planned for NEOM could lead to unprecedented control over residents’ lives, raising serious concerns about privacy and civil liberties in such a controlled environment.
The project’s reliance on AI also brings up issues related to job displacement and the ethical use of technology.
With little transparency about how these technologies will be implemented, there are growing fears about their potential misuse.
The project also often boasts technology that has yet to be invented.
A former employee previously described The Line as “untethered to reality”.
A Bloomberg investigation from 2022, which interviewed 25 personnel and reviewed 2,700 pages of internal papers, saw the project be beset by setbacks and delays.
Last year, architect and urban planner Etienne Bou-Abdo said the 3D visuals provided “are not classical 3D architecture images”, and the project designers “have rather called upon video game designers”.
He claimed that the plan contains “a lot of technology that we don’t have today.”
Many of The Line’s essential elements, notably those linked to energy and transportation, are predicated on technology that do not yet exist, even in prototype.
Since its inception, the Crown Prince’s vision for the project has changed frequently, making it difficult for experts to predict his next move.
“The concept has morphed so much from its early conception that it’s sometimes hard to determine its direction: scaling down, scaling up, or making an aggressive turn sideways,” said Robert Mogielnicki of the Arab Gulf States Institute in Washington, following the presentation in 2022.
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