Saudi Arabia has been the talk of the town since the announcement of two mega-projects intended to build two futuristic megacities in the middle of the desert. The latter has become the focus of serious controversy due to the impact it would have on native communities that have lived in the region since ancient times.
An uncertain future for futuristic megacities: Petromonarchies run out of their Vision 2030
The Neom project was announced in 2017 as part of Vision 2030, a plan aimed at diversifying the country’s economy to reduce its heavy dependence on oil and its derivatives. The proposal was to erect in the middle of the desert a giant city equipped with cutting-edge technology such as air cabs and high-speed trains, in addition to being powered by 100% renewable energies.
The Line was announced in 2020 and consists of a revolutionary city 170km long and only 500m long. It was designed to be an urbanization without private vehicles, connected by a high-speed subway train that would make it possible to get from one end to the other in just a few minutes. It is supposed to be able to house a million inhabitants.
The two futuristic megacities that, according to the Arab government, would be sustainable and would not have any social or environmental impact, have sparked controversy and their progress continues to face stumbling blocks that cast doubt on their viability. Between difficulties in financing and regulations for the logistics of the materials needed for construction, the realization of both projects seems uncertain.
Funding cuts: $500 billion that may have been lost
The futuristic megacities planned by Crown Prince Omar Bin Salman receive state funding from the PIF (Public Investment Fund), with a projected budget of $500 billion for the first stages of their construction. This number represents no less than half of the state budget allocated for the entire year.
Although the Arab state has assets of great value, its coffers have been reporting a heavy deficit since 2022, when the authorities took the decision to reduce oil production in order to increase market value. This limitation to its most important source of income has had an impact on the viability of the crown prince’s projects, which are already under review.
For all these reasons, the authorities have cut back the projects, leaving Neom without the desalination plant that was planned for this stage and limiting The Line to only 2.7 kilometers, of the almost 200 kilometers it should have. Managers of the ambitious project, however, have been optimistic and confident, stating that all this was already planned from the beginning.
The latest setback for Neom and The Line: The world was trying to stop them, and perhaps it succeeded
Adding to the budget problems, the two futuristic megacities in Saudi Arabia now face a new challenge, this time related to the logistics of the materials and labor needed to start construction.
The contract with DSV provided for a budget of US$10 billion for the transportation and logistics of the projects. However, the extent of land for these mega-projects encompasses both Saudi Arabian and Egyptian jurisdiction, which set out a number of regulations for which DSV has not yet obtained approval, keeping the start of the project on hold.
When ambition exceeds feasibility: A reflection on what has happened
The vicissitudes that continue to confront Saudi Arabia’s two futuristic megacities demonstrate the complexity involved in the technological revolution when projections reach further than feasibility analyses. The transition to sustainability seems to move faster through smaller-scale projects such as houses built with Legos, rather than with these ambitious mega-projects.
