The Saudi energy ministry has officially signed up in support of the development of the Neom megacity project – although there were few details as to what form this support would take.
Abdul Aziz bin Salman, energy minister and step brother of Saudi Arabia’s de facto ruler, crown prince Mohammed bin Salman (MBS), said at a press conference on Sunday, 23 August: “We have to persevere and make all our capacities available to realise this project.”
Reports have suggested that Neom’s development has been stalling due to a perfect storm of stagnating oil prices, the coronavirus pandemic and investor caution caused by Saudi Arabia’s appalling human rights record.
Many commentators have raised doubts about whether the project is actually progressing, with tens of billions of dollars having been wiped off Saudi GDP since the beginning of the year.
It will also be struggling due to the shortage of labour brought on by coronavirus, where migrant labourers – often forced to live in cramped and unhygienic housing – were disproportionally hit by the disease. Fewer migrant workers have been able or willing to travel to Saudi Arabia as a result.
The undefined support being offered by the Saudi energy ministry should come as little surprise – both Neom and the ministry are, of course, central parts of the Saudi state. However, its public announcement now – and the minister’s comments about doing so to ensure the project is “realised” – suggest that perhaps things are not going as smoothly as hoped.
Neom is set for completion by 2025 – meaning there are just five years in which to build the 26,500 square km project.
Those five years would also need to see some sort of arrangement with the 20,000-strong Huwaitat community, who live in the area earmarked for Neom. However, judging by previous actions by the Saudi state, that “arrangement” may be decided exclusively by Neom and its Saudi enforcers.
Recent weeks have seen, most notably, global contractors Bechtel sign up to provide construction, design and project management services to Neom.
However, Neom’s dreams of becoming a global hub for esports – online video gaming leagues – has been crushed in recent weeks after two of the largest leagues, Riot and Blast, cancelled their links to the project. Both organisations cancelled sponsorship contracts with the project after huge pressure from fans, who cited Saudi Arabia’s human rights record.
At a time that welfare payments to Saudi citizens have been cut and VAT increased, due to the fall in the price of oil, the state’s willingness to turn further to its own reserves in lieu of overseas investors suggests it is struggling – and could also see growing opposition from within the country.
