Saudi Arabia’s ambitious construction projects, including the futuristic Neom city, are facing challenges as economic realities force potential downsizing.
Initially touted as part of Saudi Arabia’s Vision 2030 to diversify from oil dependence, these mega-projects are now under review due to lower oil revenues impacting government finances.
Neom, once envisioned as a $500 billion development, may see a scaled-back initial phase amid funding constraints.
The country is exploring alternative funding sources like selling shares in Saudi Aramco and issuing bonds, but attracting sufficient investment remains a hurdle.
This shift underscores the complex balance Saudi Arabia navigates between its grand development ambitions and economic feasibility amid global economic fluctuations.
Credit : BBC
https://www.bbc.com/news/articles/cyrr3mm8evyo