NEOM: Saudi Arabia’s New Mega City of Immense Potential By Zekeri Idakwo Laruba
Imagine a city that defies the impossible, a metropolis that rises from the sands of time, a place where innovation meets tradition, and the future beckons. NEOM, the mega city of tomorrow, is in the desert kingdom of Saudi Arabia.
While Los Angeles may boast its Hollywood glamour and sun-kissed beaches, NEOM is set to redefine the urban landscape with its sheer scale, sustainable design, and cutting-edge technology. This is a city that will rewrite the rules, a place where the boundaries of architecture, engineering, and art will be pushed to new heights.
NEOM is more than just a city – it’s a vision of a better tomorrow, a hub for entrepreneurs, inventors, and dreamers. A place where the desert sands will be transformed into a thriving oasis, teeming with life, energy, and endless possibilities.
Saudi Arabia’s ambitious NEOM project, launched in 2017 by Crown Prince Mohammad bin Salman, is a futuristic urban area being built in Tabuk Province. Spanning 26,500 km2, NEOM will feature a floating industrial complex, a global trade hub, tourist resorts, and a linear city powered by renewable energy sources.
The name “Neom” is a portmanteau. The first three letters are the Ancient Greek prefix neo meaning “new.” Much of the city is expected to be completed by 2039. The project’s estimated costs exceed $1.5 trillion. On January 29, 2019, the Saudi government announced that it had established a closed joint-stock company named Neom. The company is wholly owned by the Public Investment Fund and is solely dedicated to developing the economic zone of Neom.
Economic Benefits
NEOM is expected to create around 460,000 jobs and add an estimated $48 billion to Saudi Arabia’s GDP. Although some individuals, may be inadvertently affected by the project, the investment opportunities are however undeniable.
Investment Opportunities
1. Real Estate Development: The construction of NEOM will spur real estate development, which will increase property values and attract investors. This will lead to a surge in demand for residential and commercial properties, making it an attractive opportunity for real estate investors.
2. Tourism and Hospitality: Hosting major events like the 2034 FIFA World Cup will boost the tourism and hospitality sectors. This will lead to an increase in demand for hotels, resorts, and other tourist infrastructure, making it an attractive opportunity for investors in the tourism and hospitality sectors.
Another significant investment potential of the project is in the area of sports. Saudi Arabia has officially submitted its bid to host the 2034 FIFA World Cup. If selected, the country plans to build 11 new state-of-the-art stadiums across five cities.
One of these stadiums will be located on the 105-mile-long mirrored skyscraper, The LINE, which stands 500 meters above sea level. The proposed stadium, Known as the NEOM Stadium will have a capacity of 46,010 spectators and is expected to be ready by 2032.
3. Job Creation: The project will create numerous jobs in construction, event management, and hospitality. This will lead to a reduction in unemployment rates and an increase in economic activities.
4. Local Economy Boost: Increased visitor spending will stimulate the local economy, leading to an increase in demand for local goods and services.
5. Sponsorship and Advertising: Hosting high-profile events that will attract global brands for sponsorships and advertising, generating significant revenue.
6. Public-Private Partnerships: The project offers opportunities for public-private partnerships, allowing private investors to participate in the development and operation of the stadium.
Strategic Importance:
1. Vision 2030 Alignment: NEOM aligns with Saudi Arabia’s Vision 2030, aimed at diversifying the economy and reducing dependence on oil revenues.
2. Global Exposure: Hosting international events will enhance Saudi Arabia’s global profile, attracting further investments and tourism.
Last Line
NEOM’s investment potential is vast, with numerous opportunities in real estate development, tourism, job creation, and public-private partnerships. As Saudi Arabia continues to diversify its economy, NEOM is poised to play a significant role in the country’s economic growth and development. With its strategic location, futuristic design, and investment opportunities, NEOM is set to become a hub for economic activity in the region.
