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Digital project Neom’s The Neom in Saudi Arabia
Line, neom
Dubai, United Arab Emirates – Sovereign Saudi Arabian Fund overestimates its flagship futuristic city for $ 500 billion called the line.
The State Investment Fund has begun the consulting firms to conduct a strategic review of the appropriate linear city in 105 miles located in the NEOM-SAO its new development in Saudi Arabia.
Neom confirmed this news, first reported Bloomberg, stating that strategic checks are “ordinary practice” on long-term megap project.
But this step comes against the background of global control over Saudi Arabia’s ambitious infrastructure, as well as increased pressure on state finances.
According to Tim Kallelen, who visits the Gulf Institute, Neom did not tell in detail what the review will be focused on, but “it is likely that he will look at technical feasibility, financing, as well as economic influence,” according to Tim Kallena.
“I think these are all areas in which people had questions in the past; this technology is to actually achieve what Neom wants to do? Is it too high the price? It is obviously becoming an even more pressing problem because oil prices have headed down the past couple of years,” said Calllen Access to the Middle East on Friday.
On the site of the line in the north -western desert of Saudi Arabia is currently a wide construction site, rich in cranes and piles, and a recently built road. Long parallel tracks are cut through the sand, consisting of the spine that the planners say it will be a high -speed rail system.
Construction of the Saudi Arabia project, Neom, October 2024
Jels pendlton, line in Neom
It is designed as a high-tech city, clamped between two glass skyscrapers, with more than 1600 feet, which, according to the Saudi government, eventually lives 9 million.
The project is only one of the hyper-footuristic places planned in Neom, the children of Prince Saudi Crown Mohammed Bin Salman and the region, which the kingdom hopes to bring millions of new residents to Saudi Arabia and revolutionary life and technology in the country.
This is the main pillar of the 2030 vision, which is aimed at diversifying the Saudi economy from oil revenue and job creation and industries for its young population.
The price of Neom overall was According to estimates, up to 1.5 trillion. After perennials seemingly unlimited costs, 2024 began a sharp shift when Saudi Arabia’s budget deficit has grown And the price of oil has fallen much lower than the kingdom needs to balance their budget.
“It is clear that if oil prices, as you said earlier, make up about $ 70 a barrel, it is a completely different environment than if they cost $ 100 a barrel, where they were on average in 2022,” said the Calleny Gulf Institute. International benchmark Bronwed raw He traded $ 70.15 a barrel at 14:15 in London on Friday.
“So many of these projects will need to be revised, remaked. Does this mean that neon will not happen? No, I think Neom will definitely continue in some form.
The mentality of “yes man”
There was also a large number of criticism for the fact that some in the kingdom describe both the “so-man” mentality in Neom, where, as they say, consultants and advisers provide highly optimistic forecasts and predictions, seeking to remain in favor of their employers.
“I do not think that the expectations were well succeeded in the project level at the project level,” said CNBC Tarik Solomon, chairman of Emeryt in the US Chamber of Commerce in Saudi Arabia.
“In order for the project to succeed, it must adapt to market realities, and it must create trust.”
Solomon praised Neom and the line as “one of the most daring ideas I saw what he actually went,” but added that “architectural and consulting firms have an important role here, and they should have more sense and responsibility for wearing.”
In the tandem with the planned “assessment” line, the job reduction is planned throughout Neom, overall, one consultant that works for the project, CNBC said.
“They finally start making financial decisions,” said the consultant, who asked to remain an unknown of the restrictions in the conversation with the press.
Neom did not immediately respond to the CNBC request about the comment.
