Neom, Saudi Arabia's ambitious mega tourism project, faces a harsh reality as financial troubles mount.
Image: Neom
The Saudi crown family's megalomaniacal dream of building a gigantic, futuristic holiday resort in the middle of the desert is facing a brutal reality check.
Saudi Arabia’s ambitious Neom project—which includes a sprawling all-inclusive resort on the coast, a ski resort in the mountains, and “The Line”, a pair of 480-metre-tall skyscrapers stretching up to 170 km—is running into major financial trouble.
Sindalah Island, a seaside resort spanning 840,000 square metres, features a state-of-the-art 86-berth marina and hosted a lavish $45 million (R825 million) launch party in October, attended by high-profile celebrities. Yet, five months later, it remains closed to the public.
According to The Wall Street Journal, capital expenditure estimates to complete Neom by 2080 have skyrocketed to $8.8 trillion (R161 trillion)—which is more than 25 times the kingdom’s annual budget.
To make matters worse, an audit reviewed by the Wall Street Journal found that officials had manipulated financial records to conceal the project's ballooning costs. The audit uncovered “evidence of deliberate manipulation" by "certain members of management."
It’s a damning revelation that underscores the grandiose and unrealistic goals set by Neom’s biggest advocate, Saudi Crown Prince Mohammed bin Salman.
Costs have spiralled out of control. A "boutique hiking hotel" room, initially priced at $489 (R9,000) per night, was later readjusted to $1,866 (R33,000). Meanwhile, an "inventive glamping" experience soared from $216 (R4,000) to $794 (R14,500) a night.
Even the project’s leadership appears unstable. Neom’s former CEO, Nadhmi al-Nasr, resigned in November, just weeks after a documentary alleged that tens of thousands of foreign workers had already died during the city’s construction.
In reality it looks as if Neom’s tourism dream is rapidly turning into a financial and humanitarian disaster of unprecedented proportions.
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