Neom Archives - usatoday24

Saudi Arabia already knows the real price of Neom and it is not measured in billions, but in barrels of oil at $90

January 28, 2026 by usatoday24

Saudi Arabia is mired in a paradox that revolves around barrels of oil. Years ago the kingdom launched an ambitious program to reduce its dependence on ‘black gold’, a key element in its accounts and public treasury. Under the name of ‘Vision 2030’ basically proposed to diversify its economy with a rosary of projects which included large urban developments such as Oxagon, Trojena or the famous The Line. The problem is that the swings in the price of crude oil (the same one from which he wants to get away) is complicating the things. So much so that the kingdom has already been forced to moderate its expectations. What has happened? We told you a few days ago: Saudi Arabia has had to rethink the Neom megaprojects, the program with which the kingdom wants to promote works such as Trojena or The Line, a futuristic city 170 km long, 500 m high and 200 meters wide built from scratch in the middle of the desert. According to Financial TimesNeom’s president, Crown Prince Mohammed bin Salman, is now considering a “much smaller” scale. In fact, there is already talk of a drastic cut in The Line and changes also in Trojena. Is it a novelty? Half. Despite the efforts of Saudi Arabia for showing how the works were progressing, the international press has been warning for some time the difficulties (technical, but especially financial) that the kingdom has encountered to carry out its projects. own FT posted a few months ago a report in which he talked about how Neom’s dream is “unraveling.” His last article It goes further however and helps to understand the context. The cuts come after Neom officials commissioned an audit of the project. And although its final conclusions are not yet known, they seem to be strong enough that there are already architects working on the redesign of The Line. Their goal: to turn it into a “modest” project that can take advantage of the infrastructure built in recent years. There is talk of a change in concept, of a Neom that (without giving up the diversification of the Saudi economy) stops focusing on the “cities of the future” to focus on something much more concrete: data centers. The kingdom insists in any case that Neom is a bet that “aims to span generations” and its discourse (at least the public) is far from being defeatist. What is the problem? Beyond the scale and enormous ambition of the projects (only The Line involves building a 170 km city), Riyadh has encountered a perfect storm. Not even her years of waste (or precisely because of them) have prevented her from being forced to rethink some milestones in her initial schedule. The clearest example Trojena leaves it. There, in its ambitious ski resort, the 2029 edition of the Winter Games was going to be held. A few days ago, however, the Asian Olympic Council and its Saudi counterpart announced that the appointment will have to be postponed indefinitely. Financial Times remember that in the medium term the kingdom also has important commitments that will require it to step on the accelerator. The first will arrive with the international fair Expo 2030. The second, with the 2034 World Cup. Click on the image to go to the tweet. And what does the oil look like? If something they usually repeat analysts trying to explain the development of Vision 2030 (and more specifically Neom) is how the price of crude oil is influencing it. The reason is very simple. Although the financing of Vision 2030 does not fall directly into the budget of Saudi Arabia, its implementation does depend on large projects funded by the State. And it receives a large part of its income through oil. Saudi Arabia is the main exporter of crude oil on the planet, which explains that in 2024 this will represent 60% of public income. In general, oil and natural gas accounted for more than 20% of its entire GDP that year. A few months ago Arab Gulg States Institute (AGSI) I remembered that the weight of the oil business in the Government’s tax revenue is today much lower than a decade ago, when it reached 88%, but it has still accounted for close to 63% in recent years. Not only that. Its technicians recognize that the health of Aramco (the Saudi national oil company) is “vital for the health” of the public coffers and the country. Why is it important? By a simple rule of three. The implementation of Vision 2030 depends largely on the Saudi kingdom and its PIF (the Public Investment Fund), sovereign in nature and chaired by Mohammed bin Salman. And the money they receive is closely linked to the progress of the global oil business. In April of last year, in a complicated context, marked by fear of the trade war and differences within OPEC, Reuters warned of how the fall in the price of crude oil would be reflected in Aramco’s dividends… and these, in turn, in the money that would enter the coffers of the Government and the PIF. “The Government and the PIF will receive 32 billion dollars and 6 billion dollars less, respectively,” collected the chronicle signed by Yousef Saba. Already at that time there were experts who pointed out that this snip would take its toll on some of the projects that the kingdom had in its hands. “Saudi Arabia is likely to depend on debt financing and will have to delay or reduce some planned contract awards,” insisted Karen Young of Columbia University, recalling the nation’s deficit. Is there more? Yes. A key fact that in recent months have slipped several analysts and in which affected these days Brad Setser, CFR researcher, following the latest news about Neom and The Line. It is not just a matter of the price of oil rising or falling in the market, it is that Saudi Arabia needs the barrel of Brent to remain at certain … Read more

Silicon Valley millionaires want to lift their own Neom. They have an ace in the sleeve to convince Greenland

April 11, 2025 by usatoday24

In the list of projects that sought to create self -sufficient enclaves outside the State there are several examples. We have the Failed project north of San Francisco, Prosperous in Honduras or the Seasoning attempts In international waters. Also hyperbolic projects on the way, Like Neomall ideas that have shared a common vision: experiment with radical economic models and alternative governance, backed by millionaire capital and an almost ideological faith in without restrictions, although few have passed the prototype. Greenland looks like the next stop. Silicon Valley and “freedom.” We tell it A few months ago: the Trump administration has reactivated its ambition to acquire Greenland, but not only as a goal strategic and geopoliticalbut also as a scenario for an initiative promoted by technological billionaires. We talk about the creation of a high -tech libertarian city, known as “Freedom City”. Inspired by ideals of extreme and free market deregulation, this vision contemplates a self -sufficient enclave dedicated to the development of artificial intelligence, autonomous vehicles, space releases, nuclear microreactors and high -speed trains. According to Reuters revealedthe plan has already been discussed in private among investors such as Peter Thiel, Marc Andreessen and Shervin Pishevar, all with a history of similar projects, and has the explicit interest of Ken Howery, former ambassador to Denmark and key figure in negotiations for the possible annexation or purchase of the island. Howery, close to Trump and Elon Musk, has expressed Enthusiasm for potential Of cultural and geographical synergies between Taiwan, the United States and Japan, and although he refused to comment on the plans, several medium sources say that their role would be crucial to advance the idea. All roads lead to Greenland. The choice of the island is not accidental. Three times bigger than Texas but with Just 57,000 inhabitantsthe island has vast strategic mineral reserves, including rare earths, and houses an American military base that gives it a huge geopolitical value in the Arctic. Trump has publicly insisted that “We must have Greenland” and has not ruled out take it by force If Denmark refuses to sell it. In fact, his vice president, JD Vance, recently visited the military base with his wife, which It generated protests of the local population and harsh criticism of the new Prime Minister of Greenland, Jens-Frederik Nielsen, who considered the visit as a disrespect to the sovereignty of the island. During the same, Vance accused Denmark of not properly protecting the territory of alleged Russian and Chinese incursions, although he did not contribute concrete details. Meanwhile, the Danish government declined to comment on the rumors of a technological city funded by American private capital. A new doctrine. The proposal to build a libertarian citizen in Greenland reflects a broader ideological movement among businessmen from Silicon Valley, which for years promotes the called “Startup Cities” or “Charter Cities”: urban enclaves with minimal state intervention, designed to promote innovation and self -sufficiency. We already count The Prospera caseand now, inspired by the philosophy of “manifest destination”From the nineteenth century, its defenders see in Greenland the opportunity to open a new border for the American Expansion and Domain experiment, this time in technological key. SHERVIN PISHAR He described the initiative as “the dawn of a new manifest destination”, while Dryden Brown, co -founder of the Praxis projectargues that Greenland is the ideal place to build a prototype city that serves as a general essay for future human colonies on Mars, in line with Elon Musk’s interplanetary dreams. Brown even traveled to Greenland and has assured that other companies have raised him collaborate at the Foundation of that city. In an X publication, wrote: “We must build a prototype of Terminus on Earth before leaving towards Mars. Greenland is that place.” Investors and power networks. The impulse behind this ambitious proposal comes from a consolidated group of technological investors, many of them linked to each other through previous projects. Thiel, Andreessen and Pishevar have invested in Pronomos capitala firm dedicated to financing experimental cities in countries willing to offer special regulatory conditions. One of his main advisors, Patri Friedman (grandson of economist Milton Friedman) has confirmed that several of their projects are in the negotiation phase with governments and that one, Prosperousalready operates in Honduras under a similar model (although with rather terrible results). In addition, Praxis, backed by figures such as Joe Lonsdale and Sam Altman’s background, has raised More than 500 million of dollars to develop a new city, and could channel part of that capital towards Greenland. While Thiel denied being involved in specific plans for the Island and Musk has not commented on this, the connections between these actors and their historical interest in technological secession projects reinforce the credibility of the initiative. What they offer to the locals. Unlike the Trump rhetoricthese billionaire investors have an ace in the sleeve to convince the people of the island, one where the exploitation would make the enclave A unique space. During a hearing before the Senate Commerce, Science and Transportation Committee, experts argued that the Costa de Greenland houses one of the highest critical mineral concentrations in the world, many of them previously inaccessible because it is under thick layers of ice, but that they could become exploitable due to the melting caused by climate change and the development of new mining techniques. There is more, of course. For project drivers, Greenland is not only a geopolitical opportunity, but also an ideal platform to experiment with advanced technologies and urban models of the future. Technological investors that promote the creation of a Freedom City offer the local population an accelerated economic development vision, based on the Job promisewealth and technological opportunities in an environment of minimal regulation. They also raise the territory into a Global Innovation Center With high -value industries such as AI, clean nuclear energy, advanced transport and space exploration, which would imply massive massive investment and modern infrastructure. In addition, some actors close to the Trump administration have suggested to replace … Read more

We thought we had seen everything about the futuristic city of Neom. A document has revealed what Saudi Arabia hidden: its cost

March 11, 2025 by usatoday24

At the beginning of March Neom He was news again. Satellite images through Google showed that the expansion of its port had experienced a significant transformation as Part of oxagonthe “Pata” futuristic “leg” of Neom. Once again, the hyperbole flooded a project that was born exaggerated and that, perhaps, dies exactly the same. Dreams and chaos. We have treated countless times the project in Saudi Arabia. Neom is An ambitious project destined to transform the country into a global center of technology and businesses, which faces serious problems that have questioned their viability. As we will see below, despite the 50,000 million dollars already invested, uncontrolled costs, mass delays and a management model full of illusions and financial concealment have turned this megaproject into A monumental challenge For the heir prince Mohammed Bin Salman (MBS). A start to trompicones. The spectacular Inauguration event On October on the island of Sindalah, with the presence of celebrities such as Will Smith, Tom Brady and Alicia Keys, today it is seen from another perspective. The reason? One was hidden less glamorous reality: The constructions They were incompletethe budgets had been tripled and the heir prince himself was unexpectedly absent, a gesture interpreted by many as a sign of disapproval. Not just that. Weeks later, the CEO of Neom It ended up being replacedand a new executive team took control in a desperate attempt to straighten the project. Futuristic promises vs reality. No doubt, Neom was conceived as a city of the future with science fiction elements, including in equation A The Linethat pair of skyscrapers 170 km long and 500 meters high (then trimmed in the budget); Trojenathe skiing station in the desert; Oxagona kind of floating business and industrial district; either Sindalaha spectacular luxury resort in the Red Sea. However, reality It has been very different. Delays of more than three years in Sindalah, which still does not open its hotels or golf course, while Neom has to face A cut of your first phasewhich puts at risk attract the necessary population to justify the investment. To this we must add overflowing costs: It is estimated that Neom It will cost 8.8 billion dollars By 2080, more than 25 times the annual budget of the country. Plus: obvious logistics challenges, since construction in the desert lacks the necessary basic infrastructure (labor, roads, ports and electricity). The mega projected port for oxagon The financial disaster is uncovered. And so we arrive at the news of this week that has made the viability of the project jump through the air. An internal report of more than 100 pages, Reviewed by The Wall Street Journalhas revealed that the executives of Neom, with the support of the consultant McKinsey & Co., have been altering financial estimates to justify the increase in costs. In other words: the report found “evidence of deliberate manipulation” of figures to hide the real expense. In trojena, for example, when the cost is shot at 10 billion Of dollars, instead of reducing expenses, income expectations were inflated, artificially raising hotels and luxury camps rates. There are more. For example, the projected rate of a boutique hotel It went from $ 489 to $ 1,866 by night. And luxury “glamping” rose from $ 216 to $ 704 per night. McKinsey, who has charged More than 130 million dollars A year in fees for Neom, he validated these projections after another advisor refused to do so, according to the audit. The role of the prince. We already counted a few weeks ago that the project has started A monumental palace For the man behind the pharaonic project. The heir prince has been directly involved in each key decision, supervising architectural designs and promoting ideas Inspired by video games and science fiction movies. Some of its proposals include a “zero gravity” architecturethat challenges physical laws; or “El Candelabro”, a 30 -story skyscrapers suspended face down from a bridge; either Floating theaters between skyscrapers and a amusement park 300 meters high. When engineers have tried to reduce The Line height to save costs, Bin Salman He rejected the ideainsisting that the 500 meters high should be maintained. In another case, when The Line’s original architect, Thom Mayne, wanted to express concerns about excessive costs, Neom’s executives simply They blocked their access to the prince. Cuts and crisis. It has been the consequence. With the out of control costs, the Saudi government has begun to modify the deadlines and expectations. The initial construction of The Line was reduced from 10 km Just 1.5 km. A 30 km tunnel For trains it was canceled by excessive uprights. Finally, the goal of having the first functional section by 2030 has Delayed at 2034. That said, and despite the measures adopted, the prince and the Saudi Sovereign Fund They are still betting on the projectalthough they have begun to describe it as “a generational investment”, instead of an immediate growth source for Vision 2030. Time, of course, will issue a sentence, but today is approaching an example of quite unrealistic planninguncontrolled expense and lack of financial supervision. The futuristic city of the desert, conceived as the “civilizational revolution” of Prince Mohammed Bin Salman, seems to be trapped in a clash between fantasy and reality, already despite the billions of inverted millions, its success remains, at least, highly uncertain. Image | Google In Xataka | How much money Elon Musk has: how the fortune of the man who plans the colonization of Mars from a social network is distributed In Xataka | Who are the largest millionaires in Spain: the list of the ten richest people in the country

Satellite images have revealed an unknown complex in Neom. It is so luxurious that it can only be for a person

March 2, 2025 by usatoday24

The last thing we knew about Neom was possibly what was most moving away from the ambitious project that has Saudi Arabia. Apparently, the Futurist City proposal will not be exclusively on luxury hotels and futuristic skyscrapers. There will be much more, among other things, an agreement to become a Pointer space for AI. The latest: such an exclusive and unknown complex that can only be for a person. A luxurious palatial complex. He Neom megaprojectthe ambitious initiative of around 2 billion dollars from Saudi Arabia to transform its economy and position itself as a global reference in technology, innovation and tourism, has once again news this week after the dissemination of satellite images that reveal an unknown architecture: the Construction of a lavish palace On the Red Sea coast. Elon Musk vs Jeff Bezos: The Galaxies War Captured in January by the satellite technology company Maxar Technologies and published in a documentary of the Business Insider mediumthe images show an exclusive complex with private beaches, extensive gardens, a golf course and up to 10 helipuertos. It can only be for a person. As The medium pointsthis palace clearly points to a more than possible residence: that of the heir prince Mohammed Bin Salman. In addition, although from the project no one has talked about this architecture, the satellite plans coincide with the previous data reported by Reuters in 2018when at the dawn of the project the award of the first contracts to build up to five royal palaces in the region was mentioned, approximately 170 kilometers from Tabuk. Neom: a megaproject with light and dark. We have told it several times. Neom is the central pillar of the Mohammed Bin Salman modernization plan, designed to diversify the Saudi economy and reduce its oil dependence. And of all the initiatives, its boldest proposal It’s The Linethat vertical city of 170 kilometers long, conceived as a futuristic model of sustainable urbanization. However, the project has faced financial challengesenvironmental controversies and concerns for human rights (He even has talked about deaths). Originally scheduled to complete in 2030, development has slowed down significantly (even thought that it would be aborted at some point). At present, it is estimated that only a section of 2.5 kilometers called Hidden Marinait could be ready for that date. A prince and his lifestyle. Also counted in the middle that Prince Mohammed Bin Salman is known for his luxurious lifestyle and its expensive property portfolio. Among its most outstanding acquisitions are a Château in southern France valued at 300 million dollars and a 300 million dollars supery, reflecting the level of opulence with which its figure is related. The construction of the Palace in Neom, therefore, seems to fit within this pattern of great personal investments in the middle of a national colossal project. Neom: between ambition and reality. In short, the pharaonic project represents the most ambitious attempt of Saudi Arabia for redefining its economic future and its global image. However, the difficulties in its execution, the Lack of foreign investments and concerns about their environmental and social impact put in Interdicted your viability In the short term. The revelation of the private palace within the megaproject only adds more questions about the true nature of at least, leaves any reasonable doubt: are we facing a step towards that future of the kingdom that is advertised, or a symbol of excesses and megalomania in the middle of a plan of the most uncertain? Image | Maxar In Xataka | Neom will not just luxury hotels and futuristic skyscrapers: Saudi Arabia has sealed a key pact to dominate the AI In Xataka | The influencers who already live in Neom are uploading videos so that people are encouraged to go. It looks like an industrial estate

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