Saudi Arabia recently inaugurated a portion of its highly ambitious $500 billion mega-city, Neom, drawing a star-studded attendance and private yachts to the event aimed at highlighting the kingdom's forward-looking vision. However, significant challenges loom over the project.
A Wall Street Journal investigation revealed that the first phase of Neom, named Sindalah, is significantly delayed and has exceeded its budget. Initially estimated at $1.3 billion, the luxury resort's costs have surged to almost $4 billion.
Conspicuously, Crown Prince Mohammed bin Salman, who is the driving force behind Neom, did not attend the event. This development was swiftly followed by the replacement of Neom's CEO, Nadhmi al-Nasr.
Since its inception in 2017, Neom has absorbed more than $50 billion. Nevertheless, its most daring concepts—such as a floating business district, a desert ski resort, and a 170-kilometer linear city—remain unrealized.
The Wall Street Journal also uncovered evidence of extensive financial manipulation within Neom's management structure.
An internal audit pointed to financial mismanagement by executives, in collaboration with the consulting firm McKinsey.