Neom: The Rise and Stall of Saudi Arabia’s Futuristic Megacity

One internal report cited by sources described a culture of “overpromising and underdelivering,” with project leaders prioritizing PR and marketing over substantive progress. This has led to a credibility crisis, with some investors and partners beginning to question whether Neom will ever live up to its original vision.

Key Stakeholders and Their Roles

Despite the challenges, Neom has attracted a number of high-profile stakeholders. The Saudi Public Investment Fund (PIF) is the primary backer of the project, with Crown Prince Mohammed bin Salman serving as its driving force. Other key players include global construction and engineering firms like Bechtel and AECOM, as well as technology companies like Siemens and SoftBank.

However, the involvement of these stakeholders has not been without controversy. Some companies have reportedly expressed concerns about the project’s management and the lack of transparency in its finances. There have also been questions about the role of foreign workers in the project, given Saudi Arabia’s reliance on expatriate labor for large-scale construction projects.

What Could Have Been Done Differently?

In hindsight, there are several steps that could have been taken to avoid the current challenges. One of the most critical mistakes was the lack of a detailed, actionable plan from the outset. While the vision for Neom was compelling, the absence of a clear roadmap made it difficult to measure progress and hold stakeholders accountable.

Another issue was the over-reliance on foreign labor and expertise. While international talent was essential for the project’s success, the failure to develop local capacity and expertise has left Neom vulnerable to fluctuations in the global labor market. Additionally, the project could have benefited from greater transparency and accountability in its financial management. The allegations of financial manipulation have damaged confidence in the project and made it harder to attract new investors.

The Road Ahead

Looking ahead, the future of Neom is uncertain. While the Saudi government remains committed to the project, there are growing doubts about its viability. Some analysts have suggested that the project could be scaled back significantly, with a focus on completing a smaller, more manageable version of the original vision. Others have speculated that Neom could become a white elephant, a symbol of overambition and poor planning.

One thing is clear: Neom’s success will depend on the Saudi government’s ability to address the challenges it faces. This includes improving transparency and accountability, developing a more detailed and realistic plan, and attracting new investment. If these steps are taken, Neom could still become a symbol of Saudi Arabia’s economic transformation. If not, it risks becoming a cautionary tale about the dangers of overreach and mismanagement.

In the end, Neom’s story is a reminder of the complexities and risks involved in large-scale, transformative projects. While the vision for Neom was bold and ambitious, its execution has been marred by missteps and miscalculations. As the project moves forward, the world will be watching to see whether Neom can overcome its challenges and fulfill its promise as a city of the future.