NEOM mega-project, founded by Saudi Crown Prince Mohammed bin Salman (MBS), has reportedly been halted due to a financial shortfall, according to reliable sources.
The sources also emphasized that MBS imposed a complete media blackout over news about the matter. He instead ordered to shed light on the Kingdom’s foreign policy in relation to Iran.
Thus, France’s Azur Drones deal to supply MBS’s major project was frozen. Saudi Arabia was due to receive two drones at a cost of $250,000.
MBS has long been criticised over his huge spending on unreal megacities, saying that architecture is often drawn to authoritarian regimes, as well, for no other reason than their ability to do things by decree, citing NEOM mega-project as an example.
It is worth mentioning that NEOM offered tax-free salaries of $700,000 to $900,000 for some senior expatriates, more than 20 times the income of the average Saudi, and a broad range of other perks.
NEOM has become something of a full-employment guarantee for international architects, futurists, and even Hollywood production designers, each taking a cut of Saudi Arabia’s petroleum riches in exchange for work that some strongly suspect will never be used and for designs that never see the light of day.
Saudi Arabia is currently working with Lazard Ltd. on how to provide funding for mega project NEOM, people familiar with the matter said.
Saudi Arabia is working with Lazard Ltd. as it considers how it will pay for NEOM, Crown Prince Mohammed bin Salman’s ambitious $500 billion plan for a high-tech desert city.
The New York-based investment bank is helping the Kingdom evaluate financing options, including debt sales and a potential initial public offering on the Saudi Exchange (Tadawul).
Last September, Lazard Ltd announced today that the firm has hired Saudi national Sarah Al-Suhaimi as Chair of Lazard’s Financial Advisory business in the Middle East and North Africa (MENA), and that she will be appointed Chair of Lazard Saudi Arabia subject to regulatory approval.
MBS’ NEOM was described as a “science fiction” project. A city defined as a wall, driven through an uninhabitable desert, hermetically sealed and reliant solely on technology to make it liveable.
The unconventional megacity is part of MBS’ ambitious NEOM development project, which released conceptual videos showing the city’s high walls enclosing trees, gardens, and other plant life, nestling communities among work and recreational structures.
Many millions have so far been spent on architects, futurists, and even Hollywood set designers. But so far, only a handful of buildings have been built. The chaotic trajectory so far suggests that MBS’ urban dream may never be delivered.
