Saudi Arabia’s ambitious megacity, envisioned to operate without cars, comes with a staggering price tag of $1 trillion. The country has already committed substantial funds to this project.
Seven years ago, Saudi Arabia embarked on the Neom project. This city aims to utilize only renewable energy, eliminating the need for roads.
This initiative is a key component of Crown Prince Mohammed Bin Salman’s Vision 2030, a policy program designed to diversify the Saudi economy and reduce the kingdom’s reliance on oil.
Currently, construction is ongoing for The Line, a unique city that will stretch along the Red Sea coast. This city will span 170km in length and 200m in width, completely devoid of cars.
Transportation within The Line will be facilitated by a centrally located train, shuttling residents from one end to the other.
A description on Neom’s website states: “No roads, cars or emissions, it will run on 100% renewable energy and 95% of land will be preserved for nature.
“People’s health and wellbeing will be prioritized over transportation and infrastructure, unlike traditional cities.”
According to Bloomberg, the groundbreaking megacity has already received $28.7 billion, primarily allocated to The Line.
This is only a fraction of the total estimated cost, with projections suggesting the project could reach up to $1.5 trillion. Official documents previously estimated the cost at $500 billion.
For context, UK-based charity Oxfam estimates that addressing extreme hunger would require approximately $23 billion, with an additional $14 billion needed to combat chronic hunger.
Meanwhile, the World Bank is actively addressing the hunger crisis, committing $45 billion this year.
Thus far, Vision 2030 has cost the kingdom $1.3 trillion.
Real estate and infrastructure investment increased by 4% in a single year, as reported by real estate consultancy Knight Frank to Bloomberg.
In 2022, Crown Prince Mohammed Bin Salman, the de-facto ruler of Saudi Arabia, stated: “We cannot ignore the liveability and environmental crises facing our world’s cities, and NEOM is at the forefront of delivering new and imaginative solutions to address these issues.”
Initially, the Crown Prince aimed to accommodate nine million people in the city by 2030. However, Bloomberg reports that this estimate has been adjusted, with only 300,000 people expected to reside there by that time.