Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Arabias Crown Prince and Deputy Prime Minister has announced a new $500bn project Neom, aimed at turning the Kingdom into a leading global hub that exemplifies the future of human civilisation by offering its inhabitants an idyllic lifestyle combined with exceptional economic prospects.
Set to be the worlds first independent special zone stretching over three countries – extending across the Egyptian and Jordanian borders – Neom will become a new vibrant destination located in the northwestern region of Saudi Arabia.
Unveiling the mega masterplan, Prince Mohammed said: “Neom was born from Saudi Arabia’s Vision 2030 plan, which aims to see the country develop into a pioneering and thriving model of excellence in various and important areas of life. It stretches over 26,500sqkm of land and extends across the Egyptian and Jordanian borders, rendering Neom the first special economic zone to span three countries.”
He added: “Neom will focus on nine specialised investment sectors and living conditions that will drive the future of human civilisation: energy and water, mobility, biotech, food, technological and digital sciences, advanced manufacturing, media, and entertainment with livability as its foundation.”
The Prince, who is also the chairman of the Saudi sovereign wealth fund Public Investment Fund (PIF), further remarked: “The focus on these sectors will stimulate economic growth and diversification by nurturing international innovation and manufacturing, to drive local industry, job creation, and GDP growth in the kingdom. Neom will be backed by more than $500bn over the coming years by Saudi Arabia, the PIF, local as well as international investors.”
Neom will be sitting on one of the globes busiest economic arteries, through which nearly a tenth of the worlds trade flows, said Prince Mohammed. Neom commands a unique location to bring together the best of Arabia, Asia, Africa, Europe, and America.
Overlooking the waterfront of the Red Sea to the south and the west, and the Gulf of Aqaba, Neom enjoys an uninterrupted coastline stretching over 468km, with a dramatic mountain backdrop rising to 2,500m to the east. The wind and sun will allow Neom to be powered solely by regenerative energy. Its strategic location will also facilitate the zone’s rapid emergence as a global hub that connects Asia, Europe, and Africa, enabling 70% of the world’s population to reach it in under eight hours, which brings the potential to combine the best of major global regions in terms of knowledge, technology, research, teaching, learning, living, and working.
Prince Mohammed added that the site will also become the main entrance to the King Salman Bridge, linking Asia and Africa, which will add to the zone’s economic significance.
Investments and financing will play a vital role in Neom,to be spearheaded by the Kingdom’s economy and supported by PIF – a major global fund with access to a worldwide network of investors – and major companies set to be brought onboard to drive the success of the venture.
With the ambition of becoming one of the world’s future economic and scientific capitals, in addition to being the future commerce capital of Saudi Arabia, Neom is set to attract new foreign direct investment that will contribute to PIF’s long-term growth strategy aimed at strengthening the Saudi Arabian economy.
The Deputy Premier said Neom is being developed to be independent of the kingdom’s existing governmental framework, excluding sovereignty, and itt will adopt a regulatory framework that fosters technological as well as societal innovation and entrepreneurship in accordance with international best practices. Investors, businesses, and innovators will be consulted at every step of the development in how best to create the economic framework, design the urban plans, and attract top quality talent that will drive the growth of this zone and its resident population.
Dr Klaus Kleinfeld, the former chairman and CEO of Alcoa and Arconic, the global leaders in the aluminium industry as well as multi-material precision engineered products and solutions, has been appointed as the CEO of this new venture. Prior to Alcoa, Dr Kleinfeld had enjoyed a 20-year career with Siemens, the global electronics and industrial conglomerate, where he also served as chief executive officer. He has also served for many years on the board of Bayer, Morgan Stanley and Hewlett Packard.
Announcing the apppointment, Prince Mohammed, who is also the chairman of the founding board for Neom, said: “Dr Kleinfeld has a track record in leading some of the world’s most dynamic, advanced and best-performing businesses and we believe these skills and his leadership will ensure Neom’s success.”Dr Kleinfeld commented on his new role: “Neom will be constructed from the ground-up, on greenfield sites. Future technologies form the cornerstone of Neom’s development. All this will allow for a new way of life to emerge. Neom is a unique opportunity to combine highest levels of liveability with excellent economic prospects. I am honored and excited to take on this leadership role.”