The NEOM project is one of the largest ambitious developmental initiatives in the history of the Kingdom of Saudi Arabia and is considered a cornerstone of the Kingdom's Vision 2030, which aims to diversify national income sources and develop a sustainable economy away from sole reliance on oil. Since its announcement in 2017, NEOM has become a symbol of modernity and innovation in smart cities, knowledge economy, and renewable energy. The significance of NEOM lies not only in its vast geographical size, covering over 26,500 square kilometers in the northwest of the Kingdom along the Red Sea coast, but also in being a unique model that combines future technologies and advanced sectors such as tourism, energy, industry, innovation, and artificial intelligence, making it a focal point of local and global interest in the Saudi financial market.
NEOM aims to build an integrated ecosystem of smart cities and specialized economic zones, such as The Line linear city, Oxagon industrial zone, Trojena mountain resort, and Sindalah entertainment island. These areas aim to attract local and global investments exceeding $500 billion, with expectations of attracting over 9 million residents by 2030. Although NEOM is not yet a publicly listed company on the Saudi stock market (Tadawul), its economic impact extends to many sectors and listed companies, making it a pivotal point in investment and economic discussions in the Kingdom.
In this article, we will explore all aspects related to the NEOM project: from its vision and objectives, through its sub-projects, financing, and partnerships, to its indirect impact on the Saudi financial market and the challenges it faces, with full compliance with the Capital Market Authority's rules against providing direct investment recommendations.
Vision and Objectives of the NEOM Project
The NEOM project was launched as a key gateway to achieving the Kingdom's Vision 2030, aiming to redefine the concept of future cities by integrating the latest technologies with smart infrastructure and renewable energy. NEOM's location in the northwest of the Kingdom, near the borders of Jordan and Egypt, provides geographical and commercial connectivity with three continents.
The strategic objectives of the project focus on:
- Stimulating the national economy away from oil.
- Creating an attractive environment for global talents and investments.
- Providing a global model for sustainable smart cities.
- Developing diverse sectors such as biotechnology, tourism, clean energy, and advanced industry.
NEOM aims to attract 9-10 million residents to work and live by 2030, enhancing the Kingdom's position as a global hub in technology and the digital economy.
Geographical Location and Infrastructure
The NEOM project is located in the Tabuk region in the northwest of the Kingdom of Saudi Arabia, covering an area of approximately 26,500 square kilometers along the Red Sea coast. The site features diverse topography, including mountains, valleys, and beaches, providing significant potential for tourism and economic investment.
Regarding infrastructure, construction work began in 2018, focusing on building main roads, NEOM International Airport, and power and water stations. An integrated system for ultra-fast communications is also being developed, including 5G and 6G networks, and smart transportation systems powered by electricity and renewable energy. This infrastructure is a fundamental pillar for attracting global investors and achieving the project's objectives.
NEOM Sub-Projects: The Line, Oxagon, Trojena, and Sindalah
The NEOM project consists of several key areas and destinations, each with a specific role within the overall vision:
1. The Line: A linear city stretching 170 km, without cars or traditional streets, relying entirely on renewable energy, providing an innovative urban lifestyle based on artificial intelligence and smart mobility.
2. Oxagon: An industrial city floating on the Red Sea, focusing on advanced industries, smart ports, and automation.
3. Trojena: A unique mountain resort offering skiing, winter sports, and year-round mountain tourism experiences.
4. Sindalah: An entertainment and tourism island featuring luxury hotels, yacht facilities, and marine sports, targeting the global luxury tourism segment.
These projects integrate to create an unprecedented economic and tourism experience in the region.
Financing the NEOM Project and Strategic Partnerships
The NEOM project is primarily funded by the Saudi Public Investment Fund (PIF), with expectations of attracting local and global private investments exceeding $100 billion in the coming years. Financial commitments have already surpassed $500 billion according to official statements.
Strategic partnerships include global companies in renewable energy sectors (such as ACWA Power), technology, and engineering contracting. Agreements have also been made with Chinese and European companies to develop solar and wind energy projects, in addition to collaborations with major tourism and hospitality firms. All of this aims to ensure sustainable financing and achieve qualitative leaps in execution.
The Role of NEOM in the Saudi Financial Market
Although NEOM is not a publicly listed company on the Saudi stock market (Tadawul), its economic impact indirectly extends to many sectors. Construction, renewable energy, technology, and tourism companies that have contracts or partnerships with NEOM often experience improvements in their financial performance due to the investment opportunities generated by the project.
An example is ACWA Power (symbol: 2082), which participates in renewable energy projects in NEOM, showing growth in revenue and profits in recent years. Real estate development, transportation, and engineering consultancy companies also benefit from the massive spending on infrastructure. It is important to monitor these companies to understand market dynamics and future trends.
Targeted Sectors within NEOM
The NEOM project spans multiple sectors, but it particularly focuses on:
- Luxury tourism and hospitality: through the establishment of global resorts, hotels, and entertainment attractions.
- Technology and artificial intelligence: by creating advanced data centers, developing AI solutions, and supporting innovation.
- Renewable energy: through massive solar and wind energy projects and green hydrogen production.
- Advanced industry: by developing smart factories, microelectronics, and pharmaceutical industries.
- Smart agriculture: by applying vertical farming techniques and environmental control.
- Smart logistics and transportation: through the establishment of electric trains, hyperloop systems, and autonomous transportation.
These sectors collectively enhance NEOM's ambition to become a global hub for technology and modern economy.
Recent Developments in the NEOM Project (2024-2025)
The years 2024 and 2025 have seen significant progress in the implementation of the NEOM project. Key developments include:
- Opening experimental facilities on Sindalah Island and temporary resorts in Trojena.
- Partial operation of NEOM International Airport.
- Signing new partnerships with global companies in the renewable energy sector and launching experimental power stations.
- Progress in The Line metro project, with expectations to complete the first phase of the hyperloop train by 2027.
- Launching global sports and cultural events to enhance the NEOM brand.
All these steps affirm the Kingdom's commitment to the actual implementation of the project according to announced timelines, despite challenges related to its massive scale and execution complexities.
Impact of NEOM on the National Economy and Diversification of Income Sources
The NEOM project is expected to contribute between 3% to 5% of Saudi Arabia's GDP by 2030, thanks to massive investments, the creation of new jobs, and increased contributions from non-oil sectors.
The project provides advanced job opportunities in technology, energy, tourism, and industry, focusing on transferring and localizing global skills. It also serves as a platform to attract foreign capital and develop the innovation and entrepreneurship ecosystem in the Kingdom. These transformations are a fundamental part of the Kingdom's strategy to enhance the competitiveness of the national economy in the long term.
Parallel Projects and Competitive Environment in Saudi Arabia
NEOM is not the only project in Saudi Arabia focusing on urban and technological development, as there are major parallel projects such as:
- Qiddiya Project: focusing on entertainment, sports, and domestic tourism.
- Red Sea Project: a luxury tourism destination focusing on eco-tourism.
- Amaala Project: luxury and arts tourism on the Red Sea coast.
- Diriyah Gate Project: a global cultural and historical project.
- King Abdullah Economic City: a massive real estate and industrial development project.
Despite the existence of these projects, NEOM stands out due to its scale and focus on smart cities and advanced technologies, making it unique in the competitive Saudi and regional environment.
Challenges and Controversies Surrounding the NEOM Project
The NEOM project faces several challenges, the most prominent of which are:
- Environmental impact: Building massive cities in natural areas raises concerns about preserving desert and marine ecosystems.
- Social dimensions: Some developments have involved relocating local populations and programs for resettlement and compensation.
- Economic feasibility: The massive scale of investment raises questions about expected returns and speed of completion.
- Political challenges: The project's proximity to international borders carries security and diplomatic dimensions that require careful management.
The NEOM management is working to address these issues through sustainability programs, community engagement, and communication with local and international stakeholders.
Measuring Progress in Project Implementation
The stages of NEOM implementation are measured through several key indicators, including:
- The percentage of completion in infrastructure (over 60% of The Line's initial works completed in 2024).
- The number of investment partnerships and signed contracts.
- The volume of spending on projects and essential facilities.
- The development of the number of workers and temporary residents.
Progress is also monitored through government reports, press releases, and statements from project officials. The pace of completion is expected to increase as the project enters the trial operation phases for various facilities.
Prospects for Listing and Companies Associated with NEOM in the Financial Market
Currently, there are no official plans to list the NEOM company on the Saudi stock market (Tadawul), as it is owned by the Public Investment Fund (PIF). However, it is expected that in the future, subsidiary companies or private partnerships related to the project's activities may be offered for public subscription, especially in the sectors of energy, tourism, or technology, which could provide new opportunities for investors.
Currently, the impact is concentrated on listed companies that obtain contracts or enter into partnerships with NEOM, such as ACWA Power (2082) in the energy sector, and construction and real estate development companies. It is important to monitor company announcements and analyze their financial reports to understand how they benefit from NEOM projects.
The Role of Innovation and Advanced Technologies in NEOM
Innovation is at the heart of the NEOM project, as the area serves as an open laboratory to experiment with the latest global technologies in city management, energy, transportation, and industry. The project focuses on applying artificial intelligence in services, developing cloud computing solutions, utilizing robotics in construction and services, and implementing blockchain technology in transactions.
The project also supports research and development in renewable energy, smart agriculture, and environmental control, aiming to create a fully sustainable and eco-friendly environment. NEOM aims to become a global center for innovation and future technologies by 2030.
Conclusion
The NEOM project represents a historic turning point in the path of economic and technological development in the Kingdom of Saudi Arabia, embodying the aspirations of Vision 2030 to build a diversified and sustainable economy. By focusing on smart cities, renewable energy, innovation, and advanced tourism, the project outlines the future for a modern Saudi society attractive to global investments.
Although NEOM currently does not offer direct investment opportunities for individuals through the Saudi stock market, its impact permeates the performance of many sectors and listed companies that are linked by contracts or partnerships in the project. Careful monitoring of developments and analysis of the financial data of related companies remain crucial to understanding the project's implications for the Saudi financial market.
In conclusion, the SIGMIX platform emphasizes the necessity of consulting a licensed financial advisor before making any investment decisions and encourages researchers and investors to follow the latest updates and official reports from the relevant authorities regarding the NEOM project to ensure informed and objective decision-making.
Frequently Asked Questions
The NEOM project is a futuristic smart city located in the northwest of the Kingdom of Saudi Arabia, launched in 2017 as part of the Kingdom's Vision 2030. The project aims to diversify the Saudi economy away from oil by developing sectors such as technology, tourism, renewable energy, and advanced industry. It also seeks to attract global talents and investments, transforming the region into a global hub for innovation, smart cities, and the digital economy.
The NEOM project is primarily funded by the Saudi Public Investment Fund (PIF), with plans to attract local and international private investments reaching $100 billion in the coming years. Funding sources also include partnerships with global companies in energy, technology, and tourism sectors, along with direct government contributions and future investments from the private sector through various investment instruments and bonds.
Currently, direct investment in the NEOM company is not possible as it is not a publicly traded company listed on the Saudi stock market (Tadawul). However, investors can monitor listed companies that have contracts or partnerships in executing NEOM projects, such as renewable energy, construction, and technology companies, as these companies may benefit from growth opportunities arising from the project.
The NEOM project includes several major sub-projects, the most notable of which are:
- The Line: An innovative linear city 170 km long relying on artificial intelligence.
- Oxagon: A floating industrial city focusing on smart ports and advanced industries.
- Trojena: A mountain resort for skiing and winter sports.
- Sindalah: A luxury entertainment and tourism island dedicated to global tourism.
The NEOM project is expected to contribute between 3% to 5% of Saudi Arabia's GDP by 2030, through the development of non-oil sectors, providing advanced job opportunities, attracting foreign capital, and enhancing the innovation ecosystem. The project also supports the Kingdom's transition to a knowledge-based economy and modern technologies.
The NEOM project faces several challenges, including:
- Environmental impact on natural systems.
- Social dimensions related to the resettlement of local populations.
- The massive scale of investment and economic feasibility.
- Security and political considerations due to its geographical border location.
NEOM management is working to address these challenges through sustainability programs, community engagement, and cooperation with local and international institutions.
The NEOM project is divided into time phases extending until 2030 and beyond. The first phase focuses on infrastructure and is expected to conclude by the middle of this decade, while the main cities and vital facilities are anticipated to be completed by 2030. However, the full development of the project may continue beyond this date due to its size and technical complexities.
There are currently no official plans to list the NEOM company on the Saudi stock market. However, it is expected that in the future, subsidiary companies or private partnerships operating in specific sectors within NEOM may be offered for public subscription, which could provide new opportunities for investors. It is advisable to monitor official announcements for the latest updates in this regard.
The most prominent listed companies on the Saudi stock market that have direct or indirect links to NEOM projects include ACWA Power (2082) in the renewable energy sector, along with construction, real estate development, technology, and transportation companies. These companies benefit from contracts and partnerships related to executing NEOM projects, which may reflect on their financial results.
Investors can monitor the progress of the NEOM project through official reports issued by NEOM, statements from the Public Investment Fund, press releases, and news from listed companies associated with the project. Economic news websites and the Capital Market Authority channels also provide periodic updates on progress, partnerships, and spending on projects.
Innovation and advanced technologies are at the core of the NEOM project, where artificial intelligence, robotics, cloud computing, and blockchain technologies are applied in city management and services. The project also focuses on developing renewable energy technologies and smart agriculture, aiming to become a global center for innovation and future technologies by 2030.