Remember Prince Mohammed bin Salman's ambitious NEOM project?
Many might have forgotten how grand it was supposed to be, especially its centerpiece—a modern version of the Great Wall known as "The Line," nestled in the desert.
Originally planned to stretch 170 kilometers, it aimed to accommodate the needs of 9 million people and boasted ultra-high-speed transportation, enabling a round trip in just half an hour.
Moreover, the entire city was to be seamlessly integrated with AI, making everything smart.
This is just the beginning. The array of technologies in NEOM city is truly mind-boggling. There are cities with automatic temperature regulation, flying taxis to tackle commuting issues, and even "Cloud Seeding" that can make it rain at any time.
Since 2017, they've been working on building this city, pledging to invest $500 billion over eight years.
With its futuristic architecture and lavish spending, NEOM has gained global fame. It's a frequent topic of discussion domestically as well.
However, despite being such a star-studded project, there are signs of it scaling back recently.
A couple of days ago, Bloomberg reported that there have been layoffs among the construction teams within The Line.
Moreover, they quietly revised their target in the project proposal, shrinking The Line to 2.4 kilometers by 2030 and reducing the population capacity from the initial 1.5 million to below 300,000.
Many netizens couldn't sit still when the project suddenly shrank so much. Some began to speculate whether the next step would be to abandon it halfway and run away. Others sarcastically remarked, "From 'The Line' to 'The Dot'."
We also took a look at the latest updates on NEOM and found that it's actually quite active, contrary to the exaggerated claims of it being abandoned. However, it has indeed encountered some issues.
Firstly, over the years, NEOM has been continuously launching new projects, as well as engaging in collaborations and investments.
For instance, just a couple of weeks ago, the official website announced a new project for a resort hotel. The entire structure is planned to be built over the sea and desert, with a 450-meter-long swimming pool connecting them.
Earlier this year, there was talk of building a hotel halfway up a mountainside, adjacent to a 450-meter-high cliff, with the sea below, emphasizing a setting with both mountains and water. Moreover, this hotel would be incredibly secluded; to access it, one would not only need to traverse an underground canal but also undergo a 100-meter vertical experience.
NEOM hasn't been short on collaborations and investments in various environmentally sustainable projects, similar to those in autonomous driving, flying cars, and more. In just the past year alone, it has engaged in six such ventures. Moreover, by the end of last year, there was news of China State Construction Engineering Corporation's Seventh Bureau winning a bid for a project within NEOM.
There's plenty on paper, but judging by the pace of construction, it seems they're dragging their feet, akin to procrastinating with deadlines like a seasoned writer.
The list of projects to be built keeps growing, but the actual progress on many of them is minimal. For a lot of these structures, all we have is a single image on the official website, start to finish.
And you know, we might tolerate the lack of progress on other projects, but what about the big one they hyped up from the start: The Line? It's been years, and the construction progress keeps getting delayed.
The original plan was to complete the first phase by 2025, starting from kilometer 44 and building 5 kilometers.
They felt a bit pressed for time, so they added another 5 years, aiming to complete 5 kilometers by 2030.
This time, they halved the goal again, aiming for just over 2 kilometers in a little over a decade.
Moreover, there have only been two official videos released about The Line project in all these years. Upon reviewing them, to be honest, there didn't seem to be much progress in the videos. At best, there were a few seconds of on-site construction photos sandwiched between some promotional footage.
The one from last October appeared to still be in the foundation-laying stage...
Given the information provided, it's hard not to suspect that this is a pie-in-the-sky venture.
Even more outrageous is the fact that Saudi Arabia, the "oil daddy," is citing money as the biggest hurdle in building NEOM City!
But upon closer inspection, it turns out they never intended to foot the bill entirely themselves.
The plan for the first phase of NEOM involves Saudi Arabia's Public Investment Fund (PIF) covering half the cost, with the government chipping in a quarter, and the rest relying on attracting investments.
When they announced these funding structures, they specifically invited top tycoons like Ray Dalio (founder of Bridgewater Associates) and Alwaleed bin Talal (a wealthy Saudi entrepreneur) to the scene. On their official website, the investment portal was also prominently displayed.
Well, it seems like the scheming is written all over their face... But when it comes down to actually doing it, things tend to be quite different.
Although PIF boasts assets worth nearly trillions, its cash reserves are embarrassingly low, with even the latest quarterly contribution to NEOM still pending approval.
On the other hand, NEOM's own IPO is faltering below expectations, with its planned debut this year likely shelved.
With their internal finances in such a state, it's no wonder other investors are hesitant to pour money in. The Line's construction progress keeps getting delayed.
In my opinion, there's a good reason why NEOM is struggling to raise funds.
On one hand, it's clear to savvy observers that many of their ideas are just flights of fancy with low feasibility.
On the other hand, NEOM is surrounded by scandals.
Their touted environmental sustainability in construction has drawn criticism, with doubts looming over whether their zero-emission plans can actually materialize.
Moreover, concerns arise from The Line's promotional images featuring extensive mirrored walls, sparking worries about light pollution and bird collisions. Additionally, at 500 meters in height, it could disrupt the natural flow of ecosystems on both sides.
The Line, under the guise of a smart city, is essentially under full surveillance. Any data security issues would compromise personal privacy entirely.
Overall, given the current situation, it's unlikely Saudi Arabia will complete the entire NEOM project. Being able to fulfill even half of the planned development would be considered fortunate.
Oh, by the way, I heard NEOM is now roadshowing to raise funds, and they're coming to China next week.
I'm quite curious about what kind of promises they'll make to us this time.
Author: Squirrel Editor: Jiangjiang Cover: Huanyan
Image and data sources:
X, NEOM official website
Bloomberg, Saudi Crown Prince MBS’s $100 Billion Foreign Investment Quest Falters
WSJ, A Prince’s $500 Billion Desert Dream: Flying Cars, Robot Dinosaurs and a Giant Artificial Moon
36Kr Overseas, Does Saudi Arabia Lack Funds to Build the Future City of NEOM? It's Not That Bad
