In a continued bid to present NEOM as the crown jewel of Saudi Arabia’s Vision 2030, Mohammed bin Salman has attempted to position the kingdom as a leader in futuristic technology and innovation. However, the recent bankruptcy of Volocopter, the German company handpicked to spearhead NEOM’s aerial mobility sector, has laid bare the cracks in this extravagant narrative. Behind the glittering promises of flying taxis and revolutionary transportation systems lies a story of miscalculated investments and economic mismanagement that threatens the very foundation of NEOM and its long-term viability.
Volocopter was hailed as a key partner in NEOM’s ambitious plans, securing a $175 million investment from the Saudi megaproject in 2022. The company was tasked with pioneering air taxi services across NEOM’s flagship developments, including The Line, Trojena, and Oxagon. This collaboration was heavily marketed as a groundbreaking achievement, positioning Saudi Arabia at the forefront of smart transportation. Yet, less than three years later, Volocopter has declared bankruptcy, unable to overcome financial challenges that even its high-profile global backers, such as Mercedes-Benz and Geely, could not resolve. The collapse raises serious questions about the wisdom of NEOM’s investment strategy and the foresight, or lack thereof, in Mohammed bin Salman’s economic decisions.
The bankruptcy of Volocopter is more than just the failure of a single startup; it represents a significant blow to the credibility of NEOM itself. The project, heavily reliant on partnerships with international firms and cutting-edge technologies, is now grappling with the fallout of an unviable venture. This debacle underscores a broader pattern of shortsightedness in NEOM’s investment approach, which prioritizes grandiose announcements over rigorous feasibility studies. Rather than learning from past lessons, the Saudi regime continues to pour resources into speculative ventures that lack proven reliability or market stability.
For NEOM, the implications of Volocopter’s downfall are profound. The project’s reliance on futuristic technologies and its alignment with untested startups make it vulnerable to market volatility and unforeseen disruptions. Investing $175 million of public funds into a company that ultimately could not sustain itself is not just a financial setback; it is a stark example of the inefficient allocation of national wealth. While Saudi citizens grapple with rising unemployment and living costs, the government is diverting vast sums of money toward ventures that serve more as publicity stunts than practical economic solutions.
This failure also reignites scrutiny over Mohammed bin Salman’s broader economic policies, which often appear more rooted in spectacle than in strategic planning. NEOM, far from being a symbol of sustainable development, has come to embody the risks of overambitious and poorly executed megaprojects. The insistence on marketing NEOM as a futuristic utopia overlooks the pressing need for investments in infrastructure, education, and job creation that directly benefit Saudi citizens. Instead, the regime has prioritized global image-building, squandering opportunities to address the structural weaknesses in its economy.
Volocopter’s collapse is not an isolated incident but rather part of a larger trend of instability within NEOM and its associated initiatives. Leadership turnover, financial inefficiencies, and unrealistic expectations have plagued the project from its inception. The resignation of NEOM CEO Nadhmi Al-Nasr in late 2024 amid reported disagreements over funding and management further underscores the internal chaos that has become synonymous with the project. Such turbulence reflects the broader challenges of translating Mohammed bin Salman’s vision into actionable and sustainable outcomes.
At its core, the failure of Volocopter and its implications for NEOM highlight the dangers of pursuing technological fantasies without regard for practical limitations or economic realities. Betting on immature technologies and financially unstable companies demonstrates a lack of sound economic judgment. While Mohammed bin Salman continues to funnel billions into projects designed to dazzle the international community, the domestic economy bears the burden of these costly experiments. The question remains: how many more failed ventures can the Saudi economy endure before the cracks in Vision 2030 become irreversible?
NEOM, once envisioned as the “city of dreams,” now risks becoming a symbol of misplaced priorities and economic recklessness. The narrative of flying taxis, artificial islands, and cutting-edge urban planning cannot mask the growing evidence of mismanagement and inefficiency that threatens the project’s sustainability. As Mohammed bin Salman doubles down on his vision, the Saudi public is left to contend with the consequences of a leadership more focused on global acclaim than on addressing the needs of its people. With each failed investment, the promise of NEOM as a transformative force for Saudi Arabia grows dimmer, leaving behind a legacy of wasted resources and unfulfilled promises.
