Saudi Arabia's $500B NEOM: Futuristic dream or dystopian reality?
Saudi Arabia is building a futuristic metropolis with an unprecedented level of ambition. Particularly impressive is the NEOM project, which plans to develop a 105-mile-long linear city, the Jeddah Tower skyscraper that will stand over half a mile high, and a year-round ski resort. However, NEOM has its challenges.
What future lies ahead for the world's leading oil producers as demand for oil declines? In Saudi Arabia, where oil revenues make up nearly 75% of the budget and 40% of GDP, the government proposed a solution in 2016.
The Saudi Vision 2030 project, also known as Project 2030, outlines the country's role in a future less dependent on oil. Among the initiatives is the NEOM project, notable for its visionary scope.
The NEOM project envisions a metropolis that combines global ambition with cutting-edge technology, energy self-sufficiency, and carbon neutrality.
With a cost of half a trillion dollars (some unofficial estimates suggest up to 1.5 trillion), the megacity is rising on the Gulf of Aqaba, promising 460,000 new jobs and an additional $48 billion in GDP. Ultimately, 9 million Saudis, or up to 25% of the current population, could reside there.
Jeddah Tower – The world's tallest building
In October 2024, after a brief pause, construction resumed on one of NEOM's key symbols: Jeddah Tower. The building's construction began in 2013, before the NEOM project was announced.
Jeddah Tower is set to become the world's tallest building, surpassing the 2,717-foot Burj Khalifa in Dubai. The exact final height is not disclosed, but it will be at least 3,307 feet tall. This is significantly shorter than the original plans, which envisioned a one-mile (5,280 feet) height.
Exceptional foundations were necessary due to unstable ground, with piles driven 656 feet into the earth, supporting a 295-foot concrete slab for the building.
The design considers the settlement of the nearly million-ton structure, allowing it to "sink" evenly over time, meaning its height from ground level will decrease.
The Line – Linear city
The Line is another significant part of the NEOM project, a 105-mile-long linear city. Constructed as a giant building with mirrored facades, it will create a controlled environment inside, similar to experimental enclosed ecosystems like Biosphere 2 from the 1980s, albeit much larger and not entirely isolated.
The Line is designed to be car-free. It will be 656 feet wide and up to 1,640 feet tall, consisting of two symmetric buildings with a covered space in between.
Residents will have access to key services within a 5-minute walk. The design expects the world's highest population density, at 260,000 people per square mile.
The city will have three main levels: an upper level for pedestrians, a middle infrastructure level, and a lower transportation system with a high-speed train for efficient travel along the city.
The city will leverage extensive data and algorithms to optimize building operations and enhance the quality of life for its residents. However, this may come at the cost of high surveillance, with data sharing linked to compensation.
Skiing in the desert and a skyscraper sunken into the ground
One standout element of the NEOM project is Trojena, set to be the first open-air ski resort on the Arabian Peninsula and a year-round winter sports destination. Its location in the mountains at elevations of 5,577-7,874 feet offers cooler temperatures, dropping below freezing in winter.
Oxagon is equally ambitious. It's a partial realization of billionaire Peter Thiel's idea to create floating islands near French Polynesia, but with a different approach.
Oxagon, a partially floating city, will have separate residential areas, a large port, and a remote industrial zone. It is planned to be a major transshipment hub, with facilities like a water desalination plant, hydrogen factory, and oceanography center.
The plans also include a "reverse" community in a structure buried 1,476 feet underground, a large airport with a 12,326-foot runway, tourist attractions, shopping centers, and an agricultural area expected to provide food for the new metropolis.
The NEOM project already has one completed phase: Sindalah, a luxurious island with a marina, golf course, upscale hotels, and facilities for a variety of activities. In October 2024, Sindalah officially opened.
The price of success
The visionary scope and technological advancements of NEOM are one aspect of the project. The other—its societal and environmental costs—is equally significant.
At this early stage, the construction of the future city has displaced around 20,000 residents, mostly from the Bedouin Al-Howeitat community. Protests have been harshly suppressed, with some organizers facing death sentences.
The Kafala system, a common form of employment for immigrants in the region, is controversial due to its requirement of complete worker subordination to employers. This system has led to abuses, with critics claiming Saudi investments are based on exploitive labor.
Working conditions are also a concern. Investigations by French television Arte and British ITV report that 21,000 workers have died during the NEOM program, with many more unaccounted for. Rapid construction, such as 24-hour land leveling for The Line, contributes to safety standard violations.
Despite massive investments, skeptics argue that the NEOM project is a misunderstanding, with unrealistic deadlines and grand structures, such as Jeddah Tower, concealing potential failure.
Time will tell whether these doubts are justified. As deadlines approach, particularly with the Trojena winter sports center hosting the X Winter Asian Games in 2029, we'll see how realistic the ambitious plans are.
