The Cracks in Neom: Saudi Arabia’s Futuristic Dream Meets Reality

[Social Media]

 

Neom was envisioned as the centerpiece of Saudi Arabia’s grand transformation—a futuristic metropolis rising from the desert, promising cutting-edge technology and surreal architecture. Celebrities like Will Smith and Tom Brady attended an extravagant launch party on a Red Sea island, with superyachts dotting the waters and Alicia Keys performing under beaming spotlights. The event, costing at least $45 million, was meant to showcase Saudi Arabia’s future. However, behind the spectacle, the reality of Neom was far from glamorous.  

 

Sindalah, the first completed section, was already three years behind schedule, with costs soaring to nearly $4 billion—three times the initial budget. Hotels were unfinished, strong winds disrupted ferry services, and much of the site remained under construction. Most notably, Crown Prince Mohammed bin Salman, the mastermind behind Neom, was absent from the event, a move many within the project interpreted as a sign of discontent. Shortly after, Neom’s long-time leader was replaced as part of efforts to salvage the struggling mega-project.  

 

 

Neom was originally imagined as a revolutionary economic hub featuring ambitious developments like Trojena, an arid-mountain ski resort, and The Line, a 106-mile-long pair of skyscrapers reaching Empire State Building heights. Yet, after spending over $50 billion, these grand visions have clashed with harsh realities. Costs have escalated dramatically, delays are persistent, and reductions to Neom’s initial phase threaten its ability to attract enough residents to function as a viable business hub.  

 

A key issue, according to former employees and an internal audit reviewed by *The Wall Street Journal*, was a cycle of unrealistic expectations. The audit, a 100-page document presented to Neom’s board, found that executives manipulated financial projections to justify skyrocketing costs. The report uncovered “deliberate manipulation” of financial data by certain members of management, with support from long-time consultants McKinsey & Co. The document revealed that Neom’s long-term costs could reach $8.8 trillion by 2080—over 25 times Saudi Arabia’s annual budget—with $370 billion needed for the first phase alone.  

 

In response to the findings, a Neom spokeswoman dismissed the interpretation of these figures as incorrect but declined to provide further details. “Neom champions excellence, professionalism, diversity, and ethical conduct,” she said, adding that adjustments in cost and schedule are common for large-scale projects. The Saudi government did not respond to inquiries regarding Neom or the crown prince’s involvement. A McKinsey spokesman denied any role in financial manipulation, stating the firm ensures compliance with international commerce regulations.  

 

Despite these issues, Saudi officials now describe Neom as a long-term investment, downplaying previous claims that it would be an economic engine by 2030. Other aspects of Saudi Arabia’s Vision 2030 have seen success, including an increase in female workforce participation and private sector expansion. However, Neom was intended as the country’s crown jewel—an international hub with fewer social and legal restrictions than the rest of Saudi Arabia. The crown prince compared it to the Egyptian pyramids, calling it a “civilizational revolution” set to house nine million people by 2045.  

 

Yet, challenges remain. The Line, Neom’s most ambitious component, is expected to require vast quantities of materials and labor, including more steel and glass than global markets can easily supply. Early cost projections were made more attractive by assuming the price per square foot would be lower than skyscrapers in Riyadh—a highly optimistic calculation. Even the project's architectural feasibility is in question, with extravagant designs such as an inverted 30-story glass building suspended from a steel bridge.  

 

The original architect of The Line, Thom Mayne of Morphosis, sought to express concerns over costs to the crown prince, but Neom executives blocked his attempts. Meanwhile, as bids from contractors exceeded expectations, project managers adjusted financial models by inflating projected profits to cover costs.  

 

Trojena, the planned ski resort, saw its costs surge by over $10 billion in 2023, bringing its expected return on investment below target. Despite the struggles, Denis Hickey, the executive overseeing The Line, insisted at the World Economic Forum in January that construction would begin by the end of the year.  

 

At Sindalah, the island resort remains incomplete. Four months after the grand opening, the golf course and hotels are still not open to the public. With few guests arriving, restaurant workers reportedly pass the time by reading books. While Saudi Arabia continues to push Neom as a futuristic marvel, the reality remains a costly and complicated challenge—one that could take generations to fully materialize.

 

Based on a report by WSJ  2025-03-12

 

 

[shackleton]

This was a Prince Mohammed prestige project 

Which is now becoming a white elephant 🐘 due to costs

But they will not want to lose face so more money will continue  to fund this project 😱

 

[Purdey]

More money than sense. 

Someone with managerial experience required.

[JonnyF]

They're certainly doing great things with boxing.

 

Turki Alalshikh has just teamed up with Dana White and big events at Times Square and Alcatraz are planned. 

 

I wouldn't be surprised to see mega boxing/MMA events take place at Neom in the future.

[Tropicalevo]

It is estimated that by 2024, 21,000 workers had died on the project, and at least 20,000 indigenous people have been relocated.

An estimated 100,000 people have been reported as 'disappeared'.

 

https://www.thelondoneconomic.com/news/21000-workers-reported-to-have-died-while-building-saudi-arabias-the-line-385614/

 

But hey - the people who devised the scheme are mega rich so no one cares

[Tom100]

NEOM was doomed to fail because it has little air connectivity and would never have the nice things the affluent want.

 

On the other hand, Dubai -- a great airline hub -- already exists as "....a futuristic metropolis rising from the desert, promising cutting-edge technology and surreal architecture."

 

Abu Dhabi -- another great airline hub -- already exists as a second-rate Dubai. Abu Dhabi has great food & infrastructure. 

 

How could MBS be so dumb? 

[ExpatOilWorker]

10 minutes ago, Tom100 said:

NEOM was doomed to fail because it has little air connectivity and would never have the nice things the affluent want.

 

On the other hand, Dubai -- a great airline hub -- already exists as "....a futuristic metropolis rising from the desert, promising cutting-edge technology and surreal architecture."

 

Abu Dhabi -- another great airline hub -- already exists as a second-rate Dubai. Abu Dhabi has great food & infrastructure. 

 

How could MBS be so dumb? 

 

[kimothai]

Reminds me of "Forest City" in Malaysa which is barely occupied.  (Communist China project, I believe)

[thaibeachlovers]

4 hours ago, Tom100 said:

How could MBS be so dumb? 

Easy. He believed the BS. When one is constantly praised and given everything they want, eventually they lose touch with reality.

 

As one that worked there for years, it's not at all surprising to me that it's all gone wrong.

 

[spidermike007]

This is great news, anything with MBS name connected to it that fails is good for the planet at large, as they are the enemy of planet earth, and they are the enemy of all non-Muslim nations. The Saudis have redefined the definition of the word toxic. 

 

In recent decades, terror has proliferated thanks to a very important sponsor: the Kingdom of Saudi Arabia. One can’t understand the global system underpinning extremism without surveying the pivotal role played by the Saudi government as well as private organizations and individuals within the kingdom. In recent decades, the Saudis have spent up to an estimated $100 billion spreading Wahhabism and perpetuating the notion that they are Islam’s caretaker. Their methods to persuade and influence run the gamut and include the funding of mosques, schools, textbooks, imams, imam learning centers and exchanges, cultural institutions around the world. The Saudis don’t simply want their extreme form of religious practice and belief to prevail. Religious forces in the kingdom, backed by the ruling family, want to destroy other, local traditions within Islam. To that end, they are rewriting history, erasing evidence of the past to favor their own narrative—a move that ideologically aligned extremists in many parts of the world have since copied.

 

The relationship between the Saudis and extremism is not merely one of affinity. The Saudi government and Saudi individuals have directly supported terrorist groups in the Middle East and beyond.

[Cryingdick]

It could be worse. He could have tried to connect SF to LA with a railway.