Construction on NEOM has been ongoing through the pandemic. Looks like it could be changing from a big tourist investment to a more domestic market though. Does anyone have any images or recent news from the site?
With a budget deficit expected to reach nearly 13% of output this year—above International Monetary Fund benchmarks for emerging-market economies—Saudi Arabia’s finances are coming under strain. The authorities have already tripled the value-added tax rate to replenish government coffers and cut cash handouts meant to cushion a rising cost of living.
With nearly $450 billion in foreign monetary reserves and the world’s second-largest proven oil reserves, Saudi Arabia is unlikely to run out of money soon. The kingdom’s roughly $300 billion sovereign-wealth fund, the Public Investment Fund—headed by Prince Mohammed—finances the biggest projects; it recently got a $40 billion injection from the central bank.A representative said that PIF’s financial commitment to the projects remains unchanged and that their timelines won’t be significantly affected by current economic conditions. Since the pandemic began, PIF has awarded a series of contracts, most recently to U.S. project management firm, Bechtel, to develop infrastructure at Neom, which currently has just a few royal palaces and workers’ camps.Source: https://www.livemint.com/news/world/saudi-crown-prince-barrels-ahead-with-big-projects-to-boost-economy-11598503255746.htmlThe projects may eventually be shifted to attract more domestic investment and consumption. That has already started happening in at least one of the developments, Neom, as senior Western executives were replaced by Saudis. On Sunday, Neom announced an agreement with the Saudi energy ministry to cooperate on renewable energy, electricity production and artificial intelligence.
The projects are so big that PIF calls them gigaprojects. Neom, at an estimated cost of $500 billion and featuring experimental technologies such as a solar dome for water desalination, is to be 33 times larger than New York City in area. The Red Sea resort, which aims to build Maldives-style hotels hovering above the water, will be the size of Belgium. And a sports and entertainment city called Qiddiya, which will have a Six Flags theme park with the world’s fastest roller coaster, is expected to be 2½ times as big as Disney World.


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