Saudi Arabia government $500 billion mega city project Neom under risk

13 Oct 2018_campuscad

Neom

Saudi Arabia government $500 billion mega city project Neom under risk after the Veteran journalist Jamal Khashoggi goes missing who was seen last entering into the Saudi Consulate in Istanbul on October 2, 2018. 

Jamal Khashoggi, who was critic of Saudi’s intervention into the ongoing war in Yemen and compared the Saudi prince to Russian President in a journal post. Now Britain, US and Turkey is pressurizing the Saudi government to answer, what happened to Jamal?

Now many of the tech giants including Apple iPhone designer Jony Ive, Virgin Group founder Richard Branson, Ernest Moriz, the former US secretary of energy are backing out the project amid vanishing of renowned Journalist.Amazon ad

So many of the business leaders don’t want to relate their names with the political issue and plan to abandon investment into Neom Project.

What is NEOM city?

Saudi government appointed around 18 big corporate leaders to oversee its ambitious global city project Neom on October 10, 2018 which is 33 times bigger than New York City and cost around $500 billion.

The board members are specialized leaders and experts from urban planning, Technology, design, energy, manufacturing and sustainability who can help to execute, provide industry insights to mega city project started by Saudi government in 2017.

Few of the board members listed below in the past

  • Peter Voser, chairman of ABB.
  • Masayoshi Son chief executive officer of Japanese holding conglomerate Softbank
  • Ernest Moniz, founder of Energy Futures Initiative
  • Andrew N. Liveris, former CEO and chairman of Dow Chemical Company
  • Travis Kalanick, CEO of City Storage Systems (Uber co-founder)
  • Norman Robert Foster, founder and CEO of Foster + Partners
  • Sam Altman, president of Y Combinator and co-chair of open AI

Saudi also called ” it’s a city of future living and to establish a diversified economy for the country that historically depended on Oil only”. 

Neom who covers almost 26,500 square Km of regions can be turned into technological, Industry, manufacturing, Biotech, Energy and the living hub for the Country and help to boost GDP said by Saudi Crown Prince Mohammed bin Salman in 2017.

Neom city plans to produce and supply energy from natural resources like wind and solar. It plans to set up the windmills in the Red Sea and Solar in Gulf of Aqaba near the Suez Canal.

The First phase of the city will be completed by 2025 and Saudi invited the investors from around the world to build the city with a Worlds largest sovereign fund of the country itself.

Neom will bring the disruption in the economy and the housing industry like what Uber did in the taxi industry, said Wes Schwalje, COO Tahseen Consulting.

Why Saudi Arabia needs hi-tech city?

Crown Prince Mohammed bin Salman, 32 who established the challenge to increase the non oil revenue by 2030.

Saudi oil “export” and “the yearly revenues” are going down by 50% from 2012 to 2016 and the country is finding out new ways to sustain in coming future. International oil prices are down from the last couple of years.

The Country is also cutting the expenditure and reduce the subsidies to its citizens.

Unemployment on the rise with strong conservative religious establishments and to stabilize the region, country needs to move forward with other options than oil to empower the new generation.


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