Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister, and Chairman of the Public Investment Fund, announced today the launch of “NEOM,” which is part of the ambitious plans and aspirations of Vision 2030 to transform the Kingdom into a leading global model in various aspects of life by focusing on attracting value chains in industry and technology within the project. Accordingly, Klaus Kleinfeld has been appointed Chief Executive Officer of the NEOM Project.
$500 billion and 9 investment sectors
During his announcement of the project, the Crown Prince stated: “The “NEOM” region will focus on nine specialized investment sectors targeting the future of human civilization: the future of energy and water, the future of mobility, the future of biotechnology, the future of food, the future of technical and digital sciences, the future of advanced manufacturing, the future of media and media production, the future of entertainment, and the future of living—which serves as the cornerstone for the other sectors—with the aim of stimulating economic growth and diversification, enabling manufacturing, and to foster innovation and propel the local industry to a global level.
The Saudi Crown Prince said, “All of this will lead to the creation of jobs and contribute to increasing the Kingdom’s gross domestic product. The “NEOM” project will work to attract private investment as well as government investments and partnerships. NEOM will also be supported over the coming years by the Kingdom of Saudi Arabia, the Public Investment Fund, as well as local and global investors.“
”NEOM” is a strategic location for all continents of the world
The project area is distinguished by several key characteristics, most notably its strategic location, which allows it to serve as a hub bringing together the best of the Arab region, Asia, Africa, Europe, and the Americas. The area is located in the northwest of the Kingdom, covering an area of 26,500 km², and overlooks the Red Sea and the Gulf of Aqaba to the north and west along a 468-km coastline, while to the east it is surrounded by mountains reaching heights of 2,500 meters. In addition, a gentle breeze helps moderate temperatures in the area. Furthermore, the sun and wind will enable the project area to rely entirely on renewable energy.
One of the cornerstones of the ”NEOM” project is its location on the Red Sea coast, which is considered the most important economic artery, through which approximately 10% of global trade passes, Furthermore, the location serves as a hub connecting three continents—Asia, Europe, and Africa—with 70% of the world’s population able to reach the site within a maximum of 8 hours, This makes it possible to bring together the best that the world’s major regions have to offer in terms of knowledge, technology, research, education, living, and work.
The first special economic zone spanning three countries
The site will also serve as the main gateway to the King Salman Bridge, which will connect Asia and Africa, further enhancing its status and economic importance. The “Neom” project will include land within the borders of Egypt and Jordan, making it the first special economic zone spanning three countries.
Furthermore, financing and financial capacity are among the most critical components of the project, which will rely primarily on the Saudi economy, and is backed by the Public Investment Fund (PIF), which has recently transformed into a major global fund with massive investment capabilities and access to a vast network of investors and major companies around the world, all of which will be leveraged to ensure the project’s success.
The “NEOM” project will serve as a hub connecting economic centers, attracting global capital and investments, thereby enabling the fund to generate substantial long-term returns that will contribute to strengthening the economy of the Kingdom of Saudi Arabia and generating high profits for investors. The project will also limit the outflow of capital from the Kingdom and aims to become one of the world’s leading economic and scientific hubs.
Legislation and Regulations Specific to “NEOM”
Attracting global investors to the region and involving them in its development and construction—by them and for their benefit—is considered one of the key enablers of this project’s success and one of its most important attractions, helping them grow and prosper in their businesses. This is underscored by the high degree of flexibility in the drafting of regulations and legislation by investors, which promotes technical and social innovation in line with global best practices, as the project zone’s regulations are independent of those of the Kingdom, with the exception of sovereign matters.
The Crown Prince said: “The ”Neom“ zone will be built from scratch on virgin land, which gives it exceptional opportunities that set it apart from other regions that have emerged and developed over hundreds of years. We will seize this opportunity to build a new way of life with tremendous economic potential, including future technologies for the development of the “Neom” region include unique advantages, some of which are smart mobility solutions ranging from autonomous driving to self-piloted aircraft; modern methods of agriculture and food production; human-centered healthcare that surrounds the individual to ensure their well-being; free ultra-high-speed internet networks—or “digital air”—free, continuous online education meeting the highest global standards, integrated digital government services that make all services accessible to everyone at the touch of a button, new building code standards for carbon-neutral homes, and a creative and innovative design for the ”NEOM” region that encourages walking and cycling, supported by renewable energy sources.“
Ambitious Goals
The ”Neom” project aims to achieve its ambitious goals of making the region one of the safest in the world, if not the safest, by employing the latest global technologies in the field of security and safety, and by enhancing the efficiency of public life activities to protect residents, visitors, and investors.
Furthermore, all services and procedures will be 100% digital, with the goal of making the “NEOM” project the most efficient in the world; consequently, this will apply to all activities, including legal, governmental, and investment procedures, among others. In fact, the entire region will adhere to the highest global sustainability standards, and all transactions, procedures, and legal proceedings will be conducted electronically, without the use of paper.
There will be a strong push to implement the concept of a workforce for the new economy, which relies on attracting highly skilled talent to focus on innovation, decision-making, and leadership. As for repetitive and arduous tasks, these will be handled by a vast number of robots—whose numbers may exceed the human population—which could make the region’s per capita GDP the highest in the world. All these elements and characteristics will place the “NEOM” project at the forefront in terms of the efficiency of the services provided, making it the best place to live in the world.
