Technology
A recent WSJ narrative indicates that Saudi Arabia’s eight-year-old Neom initiative — a visionary, carbon-neutral, 105-mile-long linear city conceived by Crown Prince Mohammed bin Salman — has become a financial quagmire.
Afflicted by delays and budget overruns, the nation, which has already invested $50 billion, may reportedly endure an additional 55 years of construction with an astounding estimated cost of $8.8 trillion, as per an internal audit presented to Neom’s board last summer. This amount exceeds 25 times Saudi Arabia’s yearly budget,highlights the Journal.
The scenario is beginning to mirror Saudi Arabia’s own Waterloo,with MBS underestimating the meaningful obstacles embedded in his plan,much like Napoleon did in his time. Among the stark realities poised to hinder the project are insufficient labor force, inadequate infrastructure, and a shortage of power supply.
Though,there are some beneficiaries. The consulting powerhouse McKinsey & Company is reportedly generating over $130 million each year for its services despite some controversy surrounding its role due to the firm’s involvement in both planning and validating several of the project’s financial forecasts according to sources. A spokesperson from McKinsey informs WSJ that the firm maintains “rigorous protocols to prevent conflicts of interest in our engagements.”
