What is NEOM? Saudi Arabia's 21st Century Megacity
Since a new Austrian-Tunisian friend of ours who specializes in Dubai ultra-luxury high-rise real estate is bullish on NEOM and the Saudis enormous investments in elevating their non-petroleum economy in general. Since this friend recommended we check out NEOM, we've been reading up on this new sprawling coastal megacity the Saudi Kingdom is constructing in the northwest desert near Tabuk, at the northern end of the Red Sea and just across the Gulf of Aqaba waterway from Egypt's Sinai Peninsula.
In light of the potential influence NEOM's construction could have on Egypt's own ongoing New Administrative Capital (NAC) as well as the region as a whole, we've asked our Cairo-based MENA Editor Ahmed to provide ESW Patreon readers with an overview.
-- James Smith
Editor-in-Chief and Publisher, ExitStrategy.World
June 10, 2024
Since the mid-20th century, multiple countries, such as Brazil, Indonesia, Egypt with its NAC and now Saudi Arabia, have or are investing heavily in building entire megacities from scratch. These megaprojects are based on the idea that in urban planning it's better to start with a clean new slate. Sometimes these endeavors failed to meet expectations or had to be downsized, such as Brasilia, which was constructed between the 1950s and inaugurated in 1960 – it is generally considered to be an example of a failed utopian city. Evaluating other examples such as the new capital city being constructed in Borneo, Indonesia, or the NAC rising from the desert east of Cairo here in Egypt, are to be determined–NEOM is no different.
NEOM was first announced to the world in 2017, as part of the huge modernizing efforts enacted by the Saudi government. It is part of an overreaching 2030 vision for non-petroleum industries to diversify the Kingdom's economy, a supposed utopia – with completely eco-friendly policies, advanced general artificial intelligence, and the likes.
NEOM is not actually a single contrary building, but it is an amalgamation of several other complexes, projects, industrial and logistical hubs, and the likes – NEOM is simply the name of the project.
1) The Line
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Although – the most public, and well-known segment of this project is The Line – which is what most of us first think of when we think about the NEOM project, a linear, smart, utopian city constructed with all the modern methods available today, for the needs of the mid-21st and perhaps 22nd centuries, equipped with all the utilities needed to ensure comfortable living in the northwestern Arabian peninsula's desert heat.
It was first–and still is according to the Saudi government–designed to extend over 170 kilometers long. With a length over 500 meters tall and 200 meters wide, although according to Western media such gargantuan plans have either been scaled back or reconsidered as infeasible, with only 2.4 kilometers predicted to be finished by 2030. But the Saudi government has denied such claims, and they state that all construction is proceeding on schedule.
The Saudi Government also claims quite a lot of things in regards to The Line, and the NEOM project, such as:
1) The Line will create 460,000 jobs.
2) It will contribute 48 billion US dollars to the domestic GDP of the Kingdom.
3) The First Phase projected to cost over 320 billion US dollars
4) It will contribute to diversification of the non-oil and gas economy of the Kingdom
5) The Line can operate on “100% Renewable Energy, with 95% of the land to be preserved"
6) It can accommodate 9 million residents, while only being housed on a 34 kilometer square patch of land
7) “All [commercial and social] needs [of the inhabitants] will be within a five minute walk”
8) The Line will have a zero-car policy
It is important to note that no linear megacity currently exists in the world. As such, The Line segment of the NEOM project is either going to define new standards for other new coastal cities in the future, especially those to be constructed in Africa or Southeast Asia, or be considered a bust. There are also concerns and criticisms voiced by urban planners, mostly about its basic linear design proving impractical.
Besides The Line, there are several segments and areas of the project, some of which have seen success as of 2024, mostly the wind and solar farms that would fuel the industrial complexes creating green hydrogen. This is a new form of hydrogen that several countries, such as Egypt, have invested in recent years due to the huge market potential. Whether the less land-intensive nuclear-powered production of hydrogen alongside powering desalinization and city utilities will also be permitted as 'green' remains to be seen.
2) OXAGON
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Besides The Line setting itself as the future standard of residential complexes, Oxagon is trying to set itself as the future standard of what industrial complexes “should” aspire to be in the future.
Oxagon prides itself in attempting to “build an advanced and clean manufacturing ecosystem”. The video on the Neom YouTube channel for it has over 16 million views since mid-November 2021.
Its Renewable Energy efforts are already being seen with the aforementioned wind and solar farms with its $8 billion investment, OXAGON will also focus on “Autonomous and Sustainable Mobility”, which, as the name suggests, will rely heavily on autonomous vehicles and be reliant on AI. While never before delivered on such a massive scale, autonomous factories do exist, especially in China. These ultra-modern plants require little to no human supervisors or forklift drivers to be present within these facilities.
Oxagon is also attempting to, by its own words, “inspire the shift to smart manufacturing”, the industrial hub is also attempting to innovate in desalinization and wastewater treatment efforts, which are very important for the burgeoning population not only of the Kingdom, but also of its neighbor and ally Egypt. But we have yet to see the fruits of this ambitious agenda.
Farms in Oxagon are intended to be sustainable and eco-friendly, while being involved in advanced aquaculture to reduce overfishing when it comes to feeding the Gulf region, designing the “future” greenhouses of the world, and so forth. Oxagon will also have a technological district that focuses on the creation of next-generation tech.
3) TROJENA
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Besides the residential areas of The Line, and the Industrial Hubs of Oxagon, Trojena will be the resort.
Basing itself around the nearby mountains, Trojena is most likely going to be either the first or second functional part of the NEOM project alongside the energy production facilities. Trojena is set to hold the Pan-Asian Winter Games, the competition to Trojena is quite simple and known – it intends to challenge the mountain resorts of Austria and Switzerland, and we shall see this attempt in 2029.
Located 50 kilometers from the Gulf of Aqaba, covering an area of 60 square kilometers with an average elevation of 1.5 to 2.6km, the potential for a world class mountain resort is certainly there, the NEOM project plans to build 36 kilometers of skiing and snowboarding slopes for the region, while advancing in-door and out-door activities. This segment of the NEOM project is expected to produce 10,000 Jobs, contribute 700,000 tourists annually to Saudi Arabia. Already several hotel chains, such as Ennismore brands, have partnered up with NEOM management to provide the basis for the hotels and services of the mega-resort.
4) Sindalah
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With the Trojena segment being dedicated for the mountains of Saudi Arabia, Sindalah intends to be the sea-side resort – a luxurious island and yacht club destination to eventually rival Dubai's iconic man-made Palm Jumeireh archipelago.
Having a perfect climate, a perfect location, and a perfect wealthy European, Asian and Gulf tourist customer base – what could possibly go wrong?
Sindalah intends to be a global yachting hub and luxury destination, with the Island developing short under a square kilometer – to be exact, 0.84 square kilometer, a place for elite meetings as well as for the global rich to gather.
Containing a Four Seasons Hotel, and several clubs such as the beach, sports, and golf clubs, and having its own Marina, the potential for a luxurious resort is certainly there. The business model by itself is not unique, such projects have been tried and accomplished in Europe and elsewhere, even an extremely scaled down version of such a project exists in Oman, it is certainly an ambitious project.
There will also be obvious villas and apartments to rent, considering the oil money and the attention the NEOM project will have, the villas and apartments construction will certainly be of a high quality.
It will also be one of two segments of NEOM becoming operational by 2029 for sure – with it being active with, or before, Trojena.
5) MAGNA
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Since not everyone is into Island yacht clubs, others will prefer being on the mainland, and MAGNA fits that need.
Magna by itself is not a single area, instead, it is divided into 12 districts with radical differences among them but all sharing the same essences of quality and luxury, these 12 districts are: Leyja, Epicon, Siranna, Utamo, Norlana, Aquellum, Zardun, Xaynor, Elanan Gidori, Treyam and Jaumur.
Xaynor, for example, is beach resort, while Zardun is a wildlife and natural resort – for the areas which Saudi Arabia inhabits are full of natural wildlife.
Others fill specific purposes, Leyja intends be a sort of an eco-resort, while Aquellem intends to be a sort of a cave-resort.
Utamo intends to be a mountain resort, Siranna yet another resort, while mixing a beachside, mountain, and valley areas, Norlana is yet another beachfront resort, while Epicon intends to be a hotel with characteristics the world has not yet seen.
Others, such as Jaummar, simply intends to be yet another marina, another district fitting a specific role is Elanan, which intends to emulate and improve upon the wellness and heath spas of Europe, Gidori is a golf resort with championship courses. with Treyam simply being another resort by the sea.
Even though some districts may resemble each other in purpose, each district is built in a specific and unique method that differentiates itself from its compatriots.
The NEOM project is ambitious – there's no argument about that. While it is quite expensive, funding construction costs for the Oil Kingdom is not likely to be a problem.
While everything I have wrote is subject to change as time goes on, as it stands, NEOM is certainly trying to set standards for the future. Whether it will succeed or not, time will tell. Like many Egyptians I personally recommend keeping eyes on this project, for whoever gambled on its success would reap untold fortune and influence.