Plans for Saudia Arabia's incredible series of mega projects, including a global trade hub, tourist resorts, and a linear city, have reportedly surged in cost.
The cost estimate for Saudi Arabia's Neom has reportedly surged (Image: Neom)
The estimated cost of Saudi Arabia's Neom megaproject has soared from its original $500 billion (£386 billion) to a staggering $8.8 trillion (£6.8 trillion). Neom is an urban area being built in Saudia Arabia’s Tabuk province. It is part of plans to radically transform the country from an oil-based economic powerhouse to a wealthy tourist hotspot.
Neom is set to consist of an incredible series of megaprojects across multiple regions, including a floating industrial complex, a global trade hub, tourist resorts, and a linear city powered by renewable energy sources. Saudia Arabia's Crown Prince Mohammed bin Salman hailed Neom as being at the forefront of delivering imaginative solutions to "livability and the environmental crises" facing world cities.
Saudi Arabian leader Mohammed Bin Salman (Image: Getty)
Now, an apparent leak has revealed an apparent explosion of funding costs, according to a report citing the Wall Street Journal (WSJ) and Bloomberg.
It comes after an internal audit, which was assisted by management consultancy McKinsey & Co., the WSJ reports.
The outlet reviewed a 100-page internal audit of Neom that was initially presented to members of Neom’s board last Spring.
It reportedly revealed unrealistic assumptions in order to justify higher cost estimates.
Last month, Neom's deputy CEO said the project has already cost £40billion so far.
Speaking at the World Economic Forum's'Neom progress update' panel in Davos, Rayan Fayez: "More than $50 billion has been spent so far building the basic infrastructure.
"I want to emphasise that Neom is not a giga project or a real estate development project, Neom is an economy building exercise so it's creating a region within the Kingdom – diversifying the Kingdom's economy."
It comes after the Saudi government dramatically scaled back the number of residents expected to live in one Neom's most aniciptated projects - The Line.
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Riyadh had at one point hoped the cognitive city stretching 170 kilometres from the epic mountains of Neom to desert valleys and the Red Sea would one day be home to 1.5 million residents by 2030.
But last year, Bloomberg revealed that just 300,000 people are expected to live there by then.
However, there are still plans for the city to reach nine million in 100 years, Neom's Chief Development Officer has said.
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