Construction executives have revealed that Saudi Arabia’s innovative megacity initiative is expected to consume one-fifth of the world’s steel supply.
Neom, a $1 trillion mega-project, has been in development in Saudi Arabia since 2017.
Situated in the Tabuk Province at the northern tip of the Red Sea, Neom will feature several revolutionary concepts.
Among these is The Line, a coastal city 170km in length and 200m in width, devoid of cars or streets. A train will serve as the main transportation mode for its residents, traveling along its center.
Neom’s website describes The Line as: “No roads, cars or emissions, it will run on 100 percent renewable energy and 95 percent of land will be preserved for nature.”
Although the full completion is scheduled for 2045, Arabian Gulf Business Insight reports that a central 5km section is expected to be operational by 2030.
Neom will also cater to tourists with attractions such as Trojena, a resort set in the mountains, and Sindalah, an island destination.
A floating industrial district, Oxagon, will act as a center for oceanographic research.
Manar Al Moneef, Neom’s chief investment officer, mentioned at the Global Logistics Forum that Neom would be the ‘largest customer’ for construction materials over the ‘next decade.’
She highlighted the project’s steel demand, stating it would represent ’20 percent of the global steel market.’
Al Moneef also stated: “If you look at our demand in elevators, cement and so on… put simply, Neom is going to be the largest customer over the next few decades.”
In 2022, the United States, China, Germany, Italy, and Turkey were the primary importers of iron and steel, according to the Observatory of Economic Complexities.
During the same period, Saudi Arabia imported just 0.98 percent, or $5.53 billion worth, of iron and steel.
Neom is a part of Crown Prince Mohammed Bin Salman’s Vision 2030 plan, which aims to diversify Saudi Arabia’s economy by reducing its reliance on oil. The project is set to cover an area of 26,500 km2 (10,200 sq mi).
Bloomberg reports that the groundbreaking megacity has already received $28.7 billion in funding, with most of it allocated to The Line.
In 2022, Crown Prince, the de-facto leader of Saudi Arabia, remarked: “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 envisioned hosting nine million inhabitants in the city by 2030, but Bloomberg reported that this estimate has been revised, with only 300,000 people now expected to reside there by that year.