Copyright Newsweek
A top executive has spoken about a funding recalibration and shifting timelines for the world's largest construction project, describing the current phase as a good point "to re-assess what worked and what hasn’t.” "Neom was never part of a specific completion of all of [it] by 2030," the company's deputy CEO Rayan Fayez said in Riyadh on Wednesday. Neom is a $500‑billion‑plus ultra‑modern development, anchoring projects like The Line, a centerpiece linear city, the Trojena desert ski resort, the Oxagon port and floating industrial complex and a massive green‑hydrogen complex. Why It Matters The comments come amid increasing reports of budget overruns, delays and unrealistic goals, raising speculation about the feasibility of the gigantic project, part of Saudi Arabia’s Crown Prince Vision 2030. Across the Middle East, similar strategies are underway as countries seek to diversify oil-dependent economies and lure foreign investment with major infrastructure, energy and digital projects advancing. What To Know Fayez said the project had made major progress on infrastructure, including a green-hydrogen plant that is now 80 percent complete and the region’s largest green-AI data center. At the same time, Saudi Arabia is recalibrating its broader megaproject strategy, after Neom’s recently appointed CEO Aiman al-Mudaifer launched a full review of project goals and priorities. Saudi Arabia is reportedly set to steer its $925 billion sovereign wealth fund away from the real estate megaprojects that have dominated its development agenda for the past decade, a source familiar with the plans told Reuters. This follows an August report that the Public Investment Fund (PIF), has taken an $8 billion write-down on some of its highest-profile giga projects. The PIF is Saudi Arabia’s sovereign wealth fund, responsible for funding and overseeing the kingdom’s largest and most high-profile projects, including Neom and other large-scale infrastructure projects aimed at transforming its economy and global image. According to Fayez, Neom has attracted significant investment in infrastructure and planning and construction are progressing. He noted that the project’s budget is constantly evolving and emphasized the need to reassess how capital is allocated—anchoring decisions on what is commercially viable, feasible, and capable of delivering long-term economic development. "It’s a multi-generational visionary project with a mandate to create a blueprint for what sustainable cities and economic development for the future looks like," Fayez said. "It’s not just a real estate project." Over past years, human rights groups including U.N. experts and Human Rights Watch have raised concerns over forced evictions of tribal residents tied to NEOM and the widespread abuses of migrant workers. What People Are Saying Neom Deputy CEO Rayan Fayez, speaking in a session moderated by CNN's Becky Anderson at the annual Future Investment Initiative in Riyadh: "It’s a multi-generational visionary project with a mandate to create a blueprint for what sustainable cities and economic development for the future looks like. It’s not just a real estate project." What Happens Next Neom is envisioned to eventually accommodate a population of 9 million, with its futuristic cities, resorts, and industrial hubs designed to host international events, from global sports competitions to cultural and tech gatherings.
