- ORIGINAL NEWS
Saudi Arabia says all NEOM megaprojects will go ahead as planned despite reports of scaling back
- SUMMARY
Saudi Arabia’s futuristic mega-project, NEOM, has faced recent reports claiming significant scaling back of its ambitious plans.
However, the kingdom’s Economy Minister, Faisal Al Ibrahim, has strongly refuted these claims.
According to the initial reports, The Line, a glass-walled city initially envisioned to span 105 miles across the desert, would now be reduced to a mere 1.5 miles by 2030, a drastic 98.6% reduction.
It was also suggested that the target population in The Line has been slashed from 1.5 million to 300,000.
Al Ibrahim firmly rejected these claims, stating that all projects under NEOM, including The Line, are proceeding as planned without any changes in scale.
He emphasized that the project is designed to be modular, allowing for flexibility and adaptation over time.
The reported concerns over NEOM’s finances stem from the alleged withholding of budget approval for 2024 by the Public Investment Fund, Saudi Arabia’s sovereign wealth fund.
This has raised questions about the project’s feasibility given its massive scale and cost.
However, Al Ibrahim acknowledged that project decisions are made to optimize economic impact.
He explained that while the Saudi economy is experiencing growth, they want to avoid overheating it by delivering projects too rapidly.
He stressed that they aim to prioritize projects that contribute positively to the economy, particularly in sectors that previously lacked investment.
Despite the concerns, Al Ibrahim expressed confidence that investor interest in NEOM projects remains strong.
He emphasized that these sectors are being developed from scratch, requiring significant investment.
He also assured that project timing and scale will be aligned with the needs of the projects and investors.
In conclusion, Saudi Arabia’s Economy Minister has refuted reports of scaling back its ambitious NEOM megaproject.
He insists that all projects, including The Line, will be delivered as planned, albeit with adjustments made to optimize economic impact and minimize risks.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Saudi Arabia’s economy minister rejected recent reports that the kingdom’s $1.5 trillion NEOM megaproject, a futuristic desert development on the Red Sea coast, is scaling back some of its plans.”
“All projects are moving full steam ahead,”
Negative
“In early April, reports emerged that The Line project, a planned glass-walled city meant to stretch for 105 miles across the desert by 2030, would be a length of just 1.5 miles by that time — a reduction of 98.6%.”
“reports emerged in Western media outlets that The Line project, a planned glass-walled city meant to stretch for 105 miles across the desert by 2030, would be a length of just 1.5 miles by that time — a reduction of 98.6%”