Neom is Saudi Arabia’s ‘futuristic’ desert city. It is envisioned as a transnational metropolis in the Saudi northwest. And, it aims at reducing dependency on oil and diversifying the economy.
With its five unique regions, the mega developmental project has attracted attention from all around the world with its promises of sustainability and innovation. It is envisioned as a state-of-the-art city with aspirations to become a global hub for innovative discoveries and a model of sustainable living.
Neom’s unmatched liveability and economic prospects will power the Kingdom’s future economy. And, that economy will pioneer the future of key sectors such as energy, food, media, water, mobility, tourism, sport, education and more.
Highlights about Neom, a futuristic desert city
Below are some salient features of Neom, the ‘futuristic’ desert metropolis in Saudi Arabia:
- Neom is located on the Red Sea coast in the northwest of Saudi Arabia, near the borders with Jordan and Egypt.
- A technologically sophisticated metropolis and economic zone, Neom is intended to diversify Saudi Arabia’s economy away from its reliance on oil.
- With a total area of over 26,500 square kilometres, it is one of the biggest and most ambitious development projects in the world.
- The ‘Public Investment Fund’, Saudi Arabia’s sovereign wealth fund, has provided approximately $500 billion to support the project.
- ‘The Line’ is a major project within Neom, envisioned as a car-free linear metropolis of 170km in length and 200m in width.
- A major element of Saudi Arabia’s Vision 2030 plan is Neom, which aims to lessen the nation’s dependency on oil earnings. It aims at fostering the growth of other industries, including technology, tourism and entertainment.
- The project has the potential to grow into a major international hub for commerce and innovation. It has an advantageous location at the meeting point of three continents.
- Numerous multinational corporations from the west as well as other foreign businesses have expressed interest in partnering with and investing in Neom.
What is Saudi Vision 2030?
Saudi Arabia’s Vision 2030 sets out an ambitious economic development roadmap that seeks to develop the Kingdom into a global investment powerhouse.
The nation holds strong investment capabilities, which will be harnessed to diversify revenue streams. The vision aims to attract foreign investment, stimulate economic growth, create the jobs needed to employ the Kingdom’s rapidly growing labor force and develop a more resilient economy.
The Kingdom has unveiled a number of mega projects to help transform its economy, including Neom. Neom is the brainchild and vision of Crown Prince Mohammed Bin Salman and is a centerpiece of Saudi Arabia’s Vision 2030, positioning the country as a key player in global development.
Regions under Neom
Here are regions that come under Neom:
Magna
Magna, which is Neom’s greatest seaside zone, is a gem of the future, rich in cutting-edge technology and breathtaking natural beauty. In Neom, Magna is believed to exert a significant impact on fostering a vibrant tourist sector. This supports the three pillars of Neom: rethinking business, conservation and liveability. Significantly, Magna will support Saudi Arabia’s ambitions to diversify its economy and the larger objectives of Saudi Vision 2030, assisting in elevating the Kingdom to the top of the world rankings for luxury travel.
Oxagon
Neom’s sophisticated and clean businesses are based in Oxagon. It is based out in Northwest Saudi Arabia on the Red Sea. It is being developed as a living laboratory to create a new paradigm for industry. Human development and entrepreneurship will pave the way for this new future.
Oxagon is pushing Industry 4.0 techniques and circularity principles while creating a sophisticated and clean industrial environment. Oxagon is a greenfield opportunity that redefines the typical industrial city by prioritising people, innovation, and sustainability.
Sindalah
The first opulent island and yacht club in Neom will be Sindalah. Offering a picturesque entryway to the Red Sea, it promises to be a captivating and alluring travel destination. With an ideal environment all year round, Sindalah will develop into a major worldwide hub for sailing and eco-friendly luxury resort. It will have top-notch dining, retail and wellness offerings. This 840,000 square metre island getaway will preserve the area’s natural beauty. Also, it will provide exceptional service and activities both above and below the ocean.
The Line
This is a cognitive city stretching across 170 kilometers, from the epic mountains of Neom across inspirational desert valleys to the beautiful Red Sea. A mirrored architectural masterpiece towering 500 meters above sea level, but a land-saving 200 meters wide. The Line redefines the concept of urban development and what cities of the future will look like.
Trojena
Trojena will be an iconic, world-class destination, blending natural and developed landscapes. It will be offering unique human-centric experiences for residents and visitors alike. The destination will house six distinctive clusters. It will blend real with virtual architectural and engineering innovations to create a destination like no other.
Growth and business prospects in Neom
Neom is a destination where investment is so impactful that it will shape the evolution of sustainable urban living across the world. It offers a blank canvas with ESG principles as the foundation for everything we do. It will have multiple investment opportunities with a unique size and partnership model across several sectors.
Here are some key points that provide advantages to leading investors and business owners worldwide:
- Neom occupies a strategic location on one of the world’s most prominent economic arteries. It connects three continents, Asia, Europe and Africa. As much as 40 percent of the world’s population will be able to reach Neom in less than four hours. And, approximately 10 percent of the world’s trade already flows through the Red Sea.
- It has a comprehensive supply and innovation systems in place for investors or business owners to encourage.
- It has favorable industry specific regulatory environment paired with international trade laws.
- It has infrastructural environment which puts the human first and technology in its hands to experience the future first.
- It is likely to transform the Kingdom into a leading global innovation and trade hub. Its traditional value chains, future industries and technologies will stimulate local industries, private sector job creation and GDP growth.
- Saudi’s Public Investment Fund will support Neom with $500 billion in the future. Also, local and international investors will also back Neom.
Recent developments around Neom
Here are some recent developments that have taken place around the Neom:
- Last month, Capella Hotels and Resorts announced its first coastal destination in Saudi Arabia. It is based within Neom at Elanan, one of Magna’s destinations, against the backdrop of stunning desert mountains and the Gulf of Aqaba coastline. The resort will open an exclusive wellness retreat as part of the sustainable development unfolding in northwest Saudi Arabia. The resort features 80 bespoke rooms and suites.
- The Board of Directors of Neom in June revealed the development of Magna. Magna is based out in the stunning Gulf of Aqaba coastline. It comprises the recently announced premier destinations of Leyja, Epicon, Siranna, Norlana, Aqyellum, Zardum, Xaynor, Elanan, Gidori, Trevam and Jaumur. The twelve destinations will span 120 kilometers. They are likely to set a new global standard in luxury sustainable tourism.
- Neom’s board of directors in May announced Jaumur, the largest cosmopolitan luxury community set on the coast of Gulf of Aqaba. It aims to serve the highest standards of future livability and active lifestyle. Jaumur is an exclusive residential community and aims to serve more than 6,000 residents. It features 500 marina apartments and nearly 700 luxury villas.
- In April, Neom secured a new revolving credit facility (RCF) worth SAR 10 billion. The RCF, which follows a Murabaha structure, reflects a continuation of Neom’s strategy to diversify its sources of funding.
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