- Saudi Arabia insists its Neom megacity project is on track.
- The Saudi economy minister told CNBC there was “no change in scale” for the project.
- The kingdom’s been battling reports that its ambitious desert city has suffered setbacks.
Saudi Arabia says its Neom megacity project is going ahead as planned.
The kingdom has been battling reports that plans for the ambitious desert city have suffered setbacks. In recent months, Western media outlets have reported that the country is scaling back population estimates for The Line, and seeking to borrow funds.
Earlier this month, Bloomberg reported that the financial realities of the project, which could cost as much as $1.5 trillion, have started to cause alarm within the Saudi government.
In an apparent effort to refute some of these claims, the Saudi economy minister, Faisal Al Ibrahim, told CNBC that all Neom projects were continuing at the planned scale.
“There is no change in scale. It is a long-term project that’s modular in design,” he said.
“These projects will be delivered to their scale and in a manner that in terms of priorities suits the needs of the projects, the returns of these projects, and the economic impact. It’s like minimizing any leakage, minimizing any overheating risks as well,” he said.
Al Ibrahim also said the country was seeing growing investor interest in all of the Neom developments. The kingdom has recently been touring its Neom road show, making stops in Beijing, Shanghai, and Hong Kong in an apparent attempt to lure Chinese investors.
Representatives for Neom did not immediately respond to a request for comment from Business Insider.
The comments come two days after the kingdom’s finance minister said “challenges” meant adjustments would be made to some aspects of its Vision 2030 plan, of which Neom is the centerpiece.
Speaking at a World Economic Forum meeting in Riyadh on Sunday, Mohammed Al Jadaan said the country would “change course” and “adjust” as needed.
“We will downscale some of the projects, we will accelerate other projects,” he said during a session on global economic growth.
Saudi Arabia plans to open Sindalah, the megacity’s first region, by the end of the year.
