Saudi Arabia is throwing money at Neom, pushing the value of its Vision 2030 over $1 trillion
NEOM
- Saudi Arabia is still spending big on Neom, its megacity in the desert.
- The country's Vision 2030 projects have now reached $1.3 trillion in value, per Bloomberg.
- The cost of the project has reportedly been a cause for concern within the Saudi government.
Saudi Arabia is still spending big on Neom, its ambitious megacity under construction in the desert.
The heavy investment has pushed the value of the kingdom's wider Vision 2030 project past the $1 trillion mark, Bloomberg reported.
Saudi has invested $1.3 trillion in real estate and infrastructure projects in the eight years since launching the plan, with the volume of projects increasing by 4% from a year ago, real estate consultancy Knight Frank told the outlet.
Most of this money reportedly went to the project's centerpiece, Neom. It has received $28.7 billion for its various developments, including the futuristic linear city known as The Line.
The eye-watering cost of the project has reportedly been a cause for concern for some within the Suadi government.
The official estimate for Neom is $500 billion, but planners have since dismissed the figure as unrealistically low. Other estimates have put the projected costs at as much as $1.5 trillion.
Plans for the city have also hit several roadblocks in recent months. Experts say Saudi has struggled to attract the foreign investment needed to fund the project's lofty goals.
The financial realities appeared to hit home earlier this year when the kingdom reportedly scaled back some of its plans for The Line.
The city was originally planned to accommodate 9 million people by 2030. However, Bloomberg reported that this estimate had been lowered to fewer than 300,000 people.
Since then, officials have been keen to insist the project and funding are on track. In private, though, some reports have suggested that the Crown Prince is open to having "tough conversations" about the Vision 2030 ambitions.
Representatives for Neom did not immediately respond to a request for comment, made outside normal working hours.