Days before Saudi Arabia’s flagship investment event, the Future Investment Initiative (FII), kicks off, an exclusive preview of Crown Prince Mohammed bin Salman’s ambitious trillion-dollar project, Neom, is set to captivate an elite group of international guests.
Sindalah Island, the first development to open at the futuristic city-in-progress, is now welcoming financiers, entertainers, and influencers from around the world for a glimpse of the kingdom’s bold vision to diversify its economy beyond oil.
Sindalah features ultra-luxury hotels, pristine beaches, and an 86-berth marina for mega yachts, nestled along the Red Sea’s clear waters.
The island serves as a symbol of Neom’s aspirations to attract global tourism and high-end investment, aiming to transform Saudi Arabia’s northwest into a thriving hub of innovation and luxury.
The development is a vital step for Neom, a project with a projected cost ranging from $500 billion to $1.5 trillion, and plays a key role in boosting investor confidence as the FII’s eighth edition approaches.
The massive undertaking, conceptualized by Crown Prince Mohammed in 2015, envisions a city that redefines urban living with artificial intelligence integration and renewable energy.
Neom aims to be more than just a real estate project, encompassing futuristic infrastructure, a high-end tourist destination, a clean-energy hub, and even venues for major sporting events like the FIFA World Cup and the Asian Winter Games.
However, the ambitious plans have encountered significant challenges. Despite government backing, foreign investment has been slow, and financial pressures have intensified due to oil prices falling below $100 per barrel.
As a result, the government has approved only about 80% of Neom’s requested budget for the year, leading to delays in some parts of the project, including the issuance of Islamic bonds intended to raise funds from local investors.
The most challenging aspect of Neom’s development has been The Line, a pair of 500-meter-tall, 170-kilometer-long mirror-clad skyscrapers stretching across the desert.
The project, designed to house up to 1.5 million residents by 2030, has faced technological and financial difficulties.
Plans to implement multi-directional elevators and a super-fast train system remain problematic. The initial target for housing has been scaled back to less than 300,000 residents by the end of the decade.
Legal and regulatory frameworks for Neom are still under development, complicating efforts to attract foreign investors who are wary of uncertain legal jurisdictions.
Nonetheless, there have been some successes, such as securing support for a green hydrogen plant from U.S.-based Air Products and hotel partnerships with Marriott International.
As the FII approaches, the government aims to showcase progress and reassure skeptics. Sindalah is expected to play a pivotal role in building momentum for Neom, presenting a blend of realism and the “wow” factor that Saudi Arabia hopes will entice global investors and enhance the project’s credibility.
Despite the challenges, construction on Neom continues, marked by visible activity at various sites, including Sindalah and The Line. Saudi Arabia’s commitment to the project remains strong, with officials pushing forward to realize the crown prince’s vision for a post-oil future.