One of the smart strategies for business is Diversification. And many nations are also adopting it. For example, Saudi Arabia is stepping away from solely depending on oil by building a new city called The Line. This new city is part of the project named Neom. And this project is superheated by Saudi Prince Mohammed Bin Salman.
The aim of this city is to create a new economy centred around tourism, entertainment and sports. Because the oil-based economy of Saudi Arabia shrank by 0.9% in 2023. This shift is very important for the future of Saudi Arabia. However, the project hasn’t been without its problems. Many reports have raised serious concerns about environmental damage, human rights violations, and the forced relocation of local indigenous communities. All of these problems are the great hurdles in balancing ambitious development.
What are the features of the Line?
It is the new city project whose purpose is to be unlike anything else in the world. It will be surrounded by 500-meter-tall glass walls. Additionally, it will be 170 km long and 200 meters wide. Every facility will be there like hospitals, schools, and shops just in 5 minutes walk. One can easily move around vertically or horizontally, and a fast subway will let you travel from one end to the other in just 20 minutes.
Furthermore, the city will also have many other features. It includes the world’s biggest floating city, glowing beaches, high-tech areas, flying taxis, islands with robotic dinosaurs, and even a fake moon. It is also planned to use renewable energy resources and to have zero carbon emissions.
Back to 2017, when the project began. It was originally meant to include Jordan and Egypt. And its central focus is only on Saudi Arabia. By 2030, the city was supposed to be finished. The ski resort part isn’t ready yet but will host the 2029 Asian Winter Games. The city will house fewer people than planned by 2030.
There are many troubles that the Neom project is facing. The completion of the project required $500 billion. And this huge amount is supposed to come from Saudi Arabia’s Public Investment Fund (PIF). But the recent PIF results are very shocking, as the latest investments, , like in Uber and Heathrow Airport, haven’t been doing well.
Neom, the big eco-city project, is having some trouble. The $500 billion needed for it is supposed to come from Saudi Arabia’s Public Investment Fund (PIF). But PIF’s recent investments, like in Uber and Heathrow Airport, haven’t been doing well. Saudi Arabia’s savings have dropped to $15 billion, the lowest amount in years. This is a big issue because the government needs to add $270 billion to PIF by 2030 to keep the Neom project moving forward.
Due to these complexities, the government has had to push back the construction procedure.
However, there’s good news. In April 2024, Neom got $2.67 billion in new funding from local banks, which might help get the project back on schedule.
Building a city with zero-carbon emissions sounds impressive. But there are many problems it faces. First of all, by building The line the environment could hurt largely. Furthermore, the glass walls might confuse the migrating birds. There are many issues like human rights. Saudi Arabia does not have a good human rights record. According to reports, this nation destroyed many schools, hospitals and villages to build the new project, The Line. Satellite images have confirmed all of these facts.
All those who raise their voice against this project end up with death or prison. Authorities have also allowed the members who resist in the building of this new project. The UN says the Howeitat tribe, living where The Line is being built, has been forced to leave with no fair compensation. One tribe member was killed, three others got death sentences, and three more were sentenced to 50 years in prison.
Those who refuse to leave their land face harsh penalties, including prison or death. A former Saudi intelligence officer revealed that the Saudi forces were allowed to kill people to clear the land for the city.
Furthermore, Prince Mohammed Bin Salam also violates his promises. He promised to include affected people in The Line project but did not fulfil it. No one noticed the human rights abuses if and only if international pressure forced them into the spotlights. The construction of The Line project also relies on these injustices.
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