The NEOM project is described as the "most ambitious project in the world" and represents a pivotal turning point in Saudi history. Its vision aligns with Saudi Arabia's Vision 2030 to reduce reliance on oil, create new growth sectors, and develop a vibrant community.
NEOM aims to create over 100,000 new opportunities providing jobs, education, healthcare, and an improved standard of living for citizens by 2030. It seeks to attract leading companies and top talents from around the world, positioning the Kingdom as a global leader in sustainable and diverse 21st-century economics.
The area spans 26,500 square kilometres, roughly equivalent to the size of Belgium, along the Red Sea coast. Sustainability and innovation are key considerations, with 100% renewable energy, advanced infrastructure, and a business-friendly environment.
Today, Saudi youth have a unique opportunity to participate in the ambitious NEOM project, which could transform the Kingdom's economy and global standing. This futuristic city project aims to diversify the economy away from oil, attract foreign investment, and establish the Kingdom as a hub for commerce and technology, making it a major incentive for young people to engage.
NEOM as a Launch of Change:
In 2017, His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz, Chairman of the Council of Ministers, launched the bold NEOM project, led by the Public Investment Fund, aiming to transform the desert into an innovative futuristic city in the northwest of the Kingdom. NEOM includes modern projects integral to its vision, such as "The Line," "Oxagon," "Trojena," and "Sindalah."
Objectives of the NEOM Project:
NEOM's development plans are ambitious and intend to diversify Saudi Arabia's economy away from oil dependence. Some major planned projects include:
Future City: NEOM will become a centre for trade, innovation, and knowledge industries. The city will run entirely on renewable energy and have a self-driving vehicle infrastructure.
Tourist Attractions: NEOM will feature natural and industrial tourist attractions, including nature reserves, beaches, historical sites, sports facilities, and entertainment venues. Tourism is a rapidly growing sector that can provide numerous employment opportunities.
Advanced Manufacturing: NEOM will have manufacturing facilities for industries like biotechnology, pharmaceuticals, and robotics. These knowledge-intensive industries can transform the economy into high-tech sectors that offer many high-paying jobs.
Logistics Hub: NEOM's location makes it ideal as a hub for transportation and logistics services, serving the region and beyond. This can generate economic activity and employment in transportation, warehousing, and wholesale trade. Oxagon, an advanced sustainable digital port, will be the first in the world to adopt next-generation technologies, integrating supply chains, logistics services, and rail delivery systems, enhancing global trade connectivity.
Food Production: NEOM plans to integrate innovative technologies, such as vertical farming and aquaculture for sustainable food production. This may also contribute to an increase in economic activity and job opportunities in transportation, warehousing, and wholesale trade. The Arabian Agricultural Services Company (ARASCO) has signed a memorandum of understanding (MOU) with both NEOM and "Cargill," a leading company in the agricultural business worldwide. The primary objective of this MOU is to support sustainable expansion in the aquaculture sector in Saudi Arabia and achieve self-sufficiency in this sector by 2030. The MOU places a strong emphasis on innovation and sustainability in the environmentally friendly cultivation of aquatic life.
NEOM projects aim to make Saudi Arabia's economy more integrated, diverse, and globally knowledgeable. By developing non-oil sectors like tourism, technology, logistics, and food production, NEOM can create economic opportunities and new jobs, transforming Saudi Arabia into a global investment powerhouse.
Economic Impact of NEOM: Job Creation, Innovation, and Diversification
With Saudi Arabia's commitment to diversify its economy away from oil, NEOM is poised to become a key driver of job creation, innovation, and economic diversification. The NEOM project is one of the giant projects in the diverse investment portfolio of the Saudi Public Investment Fund.
NEOM is expected to create up to 380,000 new job opportunities in Saudi Arabia through "The Line" project alone, helping employ Saudi citizens in high-skill, high-paying positions. The economic activity in NEOM could contribute up to $48 billion to Saudi Arabia's GDP by 2030. NEOM focuses on 14 specialized investment sectors: energy and water, transportation, biotechnology, food, digital and technical sciences, advanced manufacturing, media, and entertainment.
Innovation in NEOM:
NEOM aims to become a global innovation hub. Its strategic location and business-friendly regulations attract global companies and entrepreneurs. As an innovation hub, NEOM will allow companies to test new technologies like self-driving vehicles, robotics, and renewable energy solutions. These partnerships and investments in research and development are expected to drive economic growth in the technology sector in the Kingdom. Tonomus is the first subsidiary of NEOM dedicated to developing its technology and digital sector, with the aim of shaping a new future based on cutting-edge technologies.
Economic Diversification in NEOM:
By developing non-oil sectors such as technology, tourism, and finance, NEOM will help Saudi Arabia diversify its economy away from reliance on oil revenues. NEOM is expected to contribute up to $100 billion annually to Saudi Arabia's GDP by 2030, with the majority coming from non-oil sources.
In summary, NEOM lies at the heart of Saudi Arabia's vision to build a vibrant society and a thriving economy. By stimulating job creation, innovation, and economic diversification, NEOM can transform Saudi Arabia into a global investment powerhouse.
NEOM’s Potential Economic Impact on Key Saudi Industries:
In summary, through pioneering projects in technology, tourism, and finance, NEOM aims to create a new economic engine for Saudi Arabia that will drive growth and prosperity for future generations. With government support, NEOM can realize its vision of becoming a blueprint for the cities of the future, offering a satisfying life for residents and profitable opportunities for businesses.
