New twist in plans for a futuristic £1,200,000,000,000 Saudi Arabia city
The development of Saudi Arabia’s futuristic new urban area has been cast into doubt over funding issues.
The area called Neom is part of the country’s drive to transition its economy away from oil dependency.
It would cover an area of 10,200 square miles and include what has become known as its most famous feature called The Line – powered entirely by renewable energy sources.
There will also be a floating industrial complex, global trade hub, and other tourist resorts.
But critics in the past have cast doubts over the project’s ambitions which is expected to be completed by 2039.
Parts of the project were originally meant to be completed by 2020, this was extended to 2025, but fell behind once again.
The government has now been forced to come up with other funding methods because low oil prices has impacted its revenues.
An adviser who did not wish to be named told the BBC a decision on the future of the projects is expected soon.
He said: ‘The decision will be based on multiple factors.
‘But there is no doubt that there will be a recalibration. Some projects will proceed as planned, but some might get delayed or scaled down.’
Neom is paid for through the Public Investment Fund (PIF), which is the government’s sovereign grant.
But Neom’s cost at £394billion is twice the amount of the country’s federal budget for the year.
Meanwhile the whole project could cost up to £1.5trillion for a government already struggling with a deficit.
The Line was originally meant to house nine million people and extend 105 miles.
When Saudi Arabia first pitched the idea for The Line it sounded Utopian in nature with robot maids, no roads, flying taxis and waterfalls.
It is now unclear how much of this will actually happen and as reality hits under scaled back plans it will extend only 1.5 miles by 2030 as part of its first phase.
Other plans include an octagon-shaped floating industrial city and a ski resort that will host the Asian Winter Games 2029.
Ali Shihabi, who is on Neom’s advisory board, said targets were always ‘designed to be overambitious’.
The Neom project has also attracted criticism for its human rights and environmental violations.
Members of the local Howeitat tribe have been protesting over their forced expulsion from the area.
Around 20,000 people are expected to be forcibly removed from the area to make way for development.
Some from the tribe have also been killed by Saudi security forces for resisting eviction.
This included Abdul Rahim al-Huwaiti and three others who were sentenced to death for resisting convictions.
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