In a bid to revive interest in Saudi Arabia’s Neom project, Crown Prince Mohammed bin Salman is organizing a lavish music and dance event on Sindalah Island, an exclusive part of the ambitious but embattled $1 trillion mega-development. The promotional event, estimated to cost 6 million Saudi riyals, aims to showcase Neom as a futuristic destination for global luxury and tourism. Yet, as Neom faces budget cuts, technological challenges, and delays, critics argue that these high-profile promotions are little more than a desperate attempt to save a project that has already consumed billions with little tangible progress.
A Grand Event Amid Fading Investor Interest
The Crown Prince’s latest promotional tactic for Neom will feature international artists, celebrities, and social media influencers flown in to paint a picture of excitement and progress. However, this comes at a time when foreign investor support for Neom is waning. Many companies have pulled back from the project, reportedly due to payment issues and concerns over Saudi Arabia’s economic conditions. Oil prices have declined, and with them, the government’s revenue, leading to more conservative spending across the kingdom. As a result, Saudi Arabia has scaled back Neom’s budget, delaying certain segments and scaling down others.
Initially touted as a $500 billion endeavor, Neom is projected to ultimately cost between $500 billion and $1.5 trillion, a monumental amount for any nation to bear. The Saudi government has resorted to soliciting investments from domestic investors through the issuance of Islamic bonds (sukuk), but the launch of this funding method has been delayed, reportedly due to incomplete financial disclosures for the year 2023.
The Line: Technological Challenges and Project Delays
One of Neom’s most ambitious features, The Line, epitomizes the technological and logistical challenges plaguing the entire project. The Line is envisioned as a 170-kilometer-long city composed of towering, 500-meter-high mirrored skyscrapers, running from the coast to the desert. The city is designed with futuristic elements, including advanced vertical and horizontal elevators and a high-speed train that would limit any travel distance within the city to just 15 minutes.
However, these lofty ideas are running into significant practical and technological hurdles. Engineers working on The Line have reported difficulties with developing elevators that can operate both vertically and horizontally. Meanwhile, the proposed high-speed rail system has proven complicated to implement, given the city’s sprawling linear design. As a result, development timelines for key features have been extended, raising concerns that Neom may never fully meet its futuristic promises.
An Image Makeover with Influencers
To counter perceptions of failure, bin Salman has turned to social media influencers and celebrities from around the world, inviting them to experience Neom firsthand and share their impressions online. Influencers like Jessica Herrmann, who has a TikTok following of 17,000, and others have posted glimpses of life in the emerging city. These influencers, however, have not entirely managed to convey the glamorous image that bin Salman hoped for; American media described their posts as depicting a “gloomy” and “bleak” environment, undermining the intended message.
The influencer campaign has faced mixed reception. Although some posts show the influencers smiling and enjoying the sights, the surroundings have not been able to hide the fact that Neom remains underdeveloped and far from its ambitious goals. Critics argue that this “influencer marketing” effort is an attempt to gloss over the struggles and setbacks that Neom faces, while the kingdom diverts billions into promotional events rather than addressing the project’s underlying issues.
Rising Costs, Financial Strain, and Local Concerns
The vast amounts of money poured into Neom have raised questions domestically and internationally, especially given Saudi Arabia’s pressing social issues, such as unemployment and rising living costs. The government approved only 80% of the requested budget for Neom this year, a rare example of financial restraint for bin Salman’s flagship projects. Analysts argue that such grandiose plans are straining the kingdom’s finances at a time when careful fiscal management is essential.
Critics say that while Neom promises a high-tech, futuristic city, the reality remains a costly and seemingly unattainable vision. Meanwhile, ordinary Saudis face rising inflation and economic challenges, leading some to question the wisdom of spending vast amounts on promotional events, lavish influencer trips, and concerts.
