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The Line has failed: Investments of 500 billion dollars in the construction of the most ambitious megaproject in the world, which was going full steam ahead in the Saudi Arabian desert, is on the verge of failure!
Worrying economic signs in Saudi Arabia: The economic indicators issued by the country are alarming. As pointed out by Wall Street Journal, The value of the Saudi investment fund’s assets has fallen to $15 billion, its lowest level since 2020, when figures began to be released. Another worrying fact is the increase in public debt, which now represents 27% of GDP, according to the French Ministry of Economy. For comparison, France’s public debt is 110% of GDP.
Saudi Arabia seeks foreign investment: The set economic The country's situation is further aggravated by the price of oil, which remains relatively low compared to previous years. This means that Saudi Arabia can no longer rely exclusively on oil to sustain its economy. In addition, the government continues to announce investments in megaprojects, such as the Dragon Ball theme park and the construction of a two-kilometer-high tower north of Riyadh.
Investment Stagnates: The Line Construction FAILED
Despite intense campaigns to attract foreign capital, the results have fallen short of expectations. Although the Neom project was supposed to raise $100 billion annually, the figures have stopped at $17 billion per year, as reported by Bloomberg. Another sign of difficulties is the cancellation of the desalination plant that was to be built in Oxagon, a joint initiative between companies from France and Japan, estimated to cost between $1,5 and $2 billion.
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Cancellation of the plant in Oxagon: Neom justified the cancellation of the plant by saying it had reviewed the region’s water needs. However, progress on the project is ongoing, as shown in a recent promotional video. Highlights include Sindalah, a luxury island designed for wealthy travelers, which is set to open soon on the shores of the Red Sea.
Sindalah: expected delivery in 2024: Sindalah is scheduled to be completed in 2024, although there are doubts about whether this deadline will be met. Construction is progressing rapidly, and the hotel structures are already visible. However, no official opening date has been announced yet. The focus is on partnerships with large luxury hotel chains, with little attention paid to the working conditions of the workers.
Accelerating deadlines for megaprojects
After years of investing in 3D advertising and video, the Saudi government is looking to speed up the timeline for projects. One example is Trojena, the futuristic ski resort in the Hedges Mountains that will host the Asian Winter Games in 2029. Officials say excavation and leveling of the site have been completed, though that information has not been officially confirmed.
Advances in Trojena: The first delivery of steel for the construction of the resort village took place in July 2024, with the arrival of 5.200 trucks, transporting 130 tons of material. However, the pace of construction needs to be intensified to meet the schedule, including the construction of the ski slopes and a 330-meter skyscraper.
Oxagon: Futuristic City: Oxagon, a planned city to be built partly on stilts, is another ambitious investment. This project will house the industrial heart of the region, and the port will begin to take shape. Although few images have been released, the first terminal is scheduled to open in 2025. The number of workers involved in the project is massive, with around 140 people working on the construction of several sites.
The new “The Machine”: In June, Neom announced “The Machine,” a luxury beachfront destination that will bring together several of the region’s landmarks. There are 12 major investments spanning 120 kilometers, all designed to position Saudi Arabia as a premier tourism destination.
Gildore: Resort with Golf Course: If you’re a golf enthusiast, Gildore is the perfect destination for you. This beachfront resort will feature a luxury hotel, 190 guest rooms and around 200 villas surrounding the golf course. The complex is expected to include high-end restaurants and boutiques, cementing the location as one of Neom’s major attractions.
Futuristic but challenging projects
The new projects remain in line with Neom’s original ideas, but now with more modest ambitions. The initial plan envisaged a capacity for 9 million people, but the current goal is to house 6 residents. They will be distributed across 500 apartments and 700 villas around the marina of the “O Muro” project.
Stunning images, but questions remain: The 3D images of the projects are impressive, with buildings that look like they came straight out of a science fiction film. However, it remains to be seen how many of these projects will actually come to fruition. The construction difficulties are immense, and the viability of some is already being questioned.
Future investments: The future of these grand projects will depend on Saudi Arabia's ability to overcome the obstacles that arise along the way. In your opinion, how will Saudi Arabia face and overcome these challenges? Leave your opinion in the comments!
