Saudi Arabia is seeking Chinese backing for its massive Neom megaproject, a futuristic city envisioned in the northwest of the kingdom. With a price tag of $500 billion, Neom faces financial hurdles, and Saudi officials recently visited Beijing, Shanghai, and Hong Kong to woo Chinese investors.
Neom is a cornerstone of Saudi Arabia’s Vision 2030 plan to diversify its economy away from oil dependence. The project promises a high-tech haven with features like a linear city stretching 170 kilometers and powered entirely by renewable energy.
The project has its share of critics. Investors are reportedly hesitant due to concerns about the sheer scale and ambition of Neom. The project’s timeline, with an initial target completion date of 2030, is viewed by some as unrealistic, potentially leading to cost overruns. Additionally, questions linger about Neom’s ability to attract the businesses and residents it needs to thrive.
China’s potential involvement is intriguing. China has experience with large-scale infrastructure projects and could be a valuable source of funding. However, the deal may not be straightforward. China might seek concessions or influence over the project’s direction, which could raise geopolitical concerns for Saudi Arabia.
Whether China joins the Neom venture remains to be seen. The project’s success hinges on overcoming investor skepticism and demonstrating a clear path to economic viability.
