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Saudi Arabia's plans to build Neom are facing serious financial difficulties. The resort city, which is planned to house two 488-meter skyscrapers and a length of up to 170 km, called The Line, may not be completed until 2080, writes Futurism.
The Wall Street Journal found that the estimated capital cost for Neom's construction reached $8,8 trillion. This is 25 times the kingdom's annual budget.
Moreover, the publication reviewed the project's audit report, which showed that officials tried to manipulate the figures to hide evidence of the real costs of building Neom.
In addition, the journalists learned that officials are also trying to protect Saudi Arabia’s King Salman bin Abdulaziz Al Saud from harsh realities. For example, they have raised the estimated prices of accommodation at a yet-to-be-completed ski resort to create the appearance that its internal rate of return meets sky-high expectations. It is alleged that a single room at a “boutique hotel for tourists” that previously cost $489 was listed for $1866.
In addition, officials tried to cover up cost manipulation, the publication said. Emails revealed that Antoni Vives, who was in charge of a coastal resort called Sindala, told consultants that they should not mention anything about the project's cost before a key meeting with investors.
The publication shared that the excessive costs even had to be revised the planning of some key buildings. However, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, is against it. For example, it was recommended to reduce the planned height of a pair of skyscrapers from 488 meters to 305 meters.
The current goal is to open the first half of the first part of the project by 2034, the publication emphasized. However, construction of the resort city is progressing at a slower pace.
The publication shared that the project’s former CEO, Nadhmi al-Nasr, resigned in November. At this time, Sindala remains unfinished, but in October, Saudi officials threw a lavish party to launch the $45 million project.
