You will like it more or less, but something cannot be denied to The Linethe ambitious ‘corridor city’ that Saudi Arabia wants to build in the middle of the desert: it does not leave anyone indifferent. After all, it is not every day that a 170 km long, 500 m high and 200 m wide metropolis made up of skyscrapers is built from scratch. Since the country’s crown prince presented the project, back in 2021the world has wondered if it is feasible or an extravagance doomed to failure.
The question has continued to rage ever since, despite the start of works.
Now it’s starting to become clear.
What has happened? That The Line goes through turbulence. Although Saudi Arabia’s flagship megaproject has advanced on the ground, something that its promoters have made clear by sharing aerial imagesin recent days they have jumped several news that suggest that dark clouds appear on the horizon.
Recently the Reuters agency informed that the priority now is to complete a first section of 2.4 kilometers, far from the 170 km that the project aspires to (its idea is to accommodate nine million people) or the structure that they wanted to have ready. looking forward to 2030. Meanwhile, other media talk about challenges or change of course.
What exactly do we know? This is not the first news that suggest that Saudi Arabia was optimistic when considering the magnitude and schedule of The Line, but now they seem to confirm something important: the project (actually NEOM or the entire Vision 30 plan) is not immune to economic ups and downs and challenges in financing the works. This is how he revealed it a few days ago Reuters, which assures that Saudi Arabia plans to reorient its sovereign fund (PIF) of 925,000 million, a strategic financing lever, away from real estate megaprojects.
While NEOM advocates large constructions, such as The Line, a futuristic ‘corridor city’ 170 km long, 500 m high and 200 m wide with the capacity to house nine million people, the new strategy would focus the PIF on investments with more sustainable returns in the short term. This involves logistics, tourism, AI or data centers. As remember The Timesthe Vision 2030 plan was based on a scenario in which a barrel of oil was trading at $100. Now it is around 60 and has not reached triple digits since 2022.
What does that mean? “We spent too much. We acted at full speed. Now we have a deficit. We need to redefine our priorities,” he acknowledged. a few days ago a Saudi official at an investment forum held in Riyadh: Other sources speak directly of “course correction” and a scenario that requires being “more conservative” in investments. Even the country’s Minister of Economy, Faisal Alibrahim, has explained that they are “reorienting priorities towards the sectors that need it most.” “And today that sector is technology, AI.”
Does that mean that mega structures are shelved? Jerry Inzerillo, an American executive who advises the crown prince, warns that he can’t go that far: “Don’t forget that nothing has been cancelled. It may just take a little longer. The ambition is still intact.” For now, at the end of 2024 the sovereign fund placed its investments in Saudi megaprojects in 56 billiona notable sum, but 12.4% below the previous year.
Does it only affect The Line? No. The Line is not the only one that has seen its original plans complicated. The Times keep it up that the Trojena tourist hub may not be in time for the 2029 Asian Winter Games, as expected. The project would not actually be completed until 2032, which would have led South Korea to prepare to serve as headquarters in four years. There are other large developments in the country, such as the island of Sindalah or the district New Murabba of Riyadh, whose completion is expected in 2040, although without ruling out delays.
Do you know anything else? Yes. Perhaps the most detailed ‘photo’ of where and what challenges the NEOM megacity faces I gave it on Thursday Financial Timeswhich published an extensive analysis with an illuminating headline: “The end of The Line: how the Saudi dream of NEOM fell apart.” The newspaper points out that, although the promoters insist that the city remains “a strategic priority” and it is possible to see the result of the works in the desert, the authorities have chosen to drastically reduce the first phase. Furthermore, among those who participate or have directly participated in the project there would be misgivings about its viability, as specified by FT.
All this between calculations that place the final budget well above what was planned and figures that (at the very least) invite you to raise your eyebrow. For example, the staff interviewed by FT speaks of an enormous need for concrete (just the first 20 modules would need more cement than France produces in a year) and millions of tons of steel. This is without taking into account the logistical, transportation and time challenges or the services that The Line would require to provide for such basic issues as water, mail delivery or waste collection.
Is it a surprise? Since the Saudi prince presented the project, years agoThe Line has aroused above all two emotions. Astonishment. And skepticism. The works have started and its promoters have shown that the project will not remain on paper, but another thing is its tempo and if it will reach the ambitious scale that was initially proposed. There are experts who have already warned that, if fulfilled, the vertical megacity will be a kind of hell for its residents.
a few months ago transcended In fact, the authorities commissioned several consulting firms to carry out a strategic review of the project to confirm its viability or propose possible changes, a decision that the promoters rejected.
Images | NEOM
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