NEOM AND SPARK HEADLINE VISION 2030 PROGRESS

Work on NEOM, one of Saudi Arabia’s flagship Vision 2030 projects, has been moving swiftly this year.

The kingdom’s sovereign wealth fund, Public Investment Fund (PIF), is the developer of the futuristic city. PIF will start work on a luxurious tourist destination, seen as the first phase of the massive project. In this regard, construction of the first airport in NEOM is expected to be completed soon, with bi-weekly flights operating to and from NEOM scheduled at the start of 2019.

Additionally, NEOM is witnessing progress in a number of key areas. One of the major key developments at NEOM since its inception is the identification of 16 economic sectors to create a sustainable economy that will not only generate job opportunities but will also unlock human innovation and creativity at all levels,” according to the Saudi Press Agency.

The 16 sectors are energy, water, mobility, biotech, food, manufacturing, media, entertainment, culture and fashion, technology and digital, tourism, sport, design and construction, services, health and well-being, education, and finally the future of liveability as the foundation of all sectors. Together they are set to generate an estimated annual income of USD 100 billion, boosting the country’s non-oil GDP.

Located in the strategically important northwestern region of Saudi Arabia, NEOM City straddles the Middle East and Africa, and at the crossroads of Asia and Europe. It is spread over an area of 26,500 square kilometres (sq km) – slightly smaller than the land area of Belgium.

Its location on the Gulf of Aqaba will ensure that residents enjoy an uninterrupted coastline stretching over 468 kilometres, with a dramatic mountain backdrop rising to 2,500 metres to the east.

The site will also become the gateway to the King Salman Bridge, connecting Asia and Africa, further elevating the economic zone’s significance. The development will extend across the Egyptian and Jordanian borders, boosting their economies and making NEOM the first private zone to span three countries.

In November, the PIF also launched Wadi Al Disah Development Project, located within the Prince Mohammed bin Salman Natural Reserve.

The development will become a major sustainable tourism location, preserving the local environment and wildlife. The region features a moderate climate, distinctive mountainous terrain and flowing springs, which will help the project become one of the kingdom’s most environmentally diverse tourist attractions.

The PIF also announced the launch of Amaala, a sea-acing tourism destination, which will sit alongside NEOM and The Red Sea Project as part of the giga-projects investment portfolio, developing a tourism ecosystem across the country’s northwest.

In addition, PIF appointed Nicholas Naples as chief executive officer of Amaala, to spearhead the destination’s development and operations.

In a bid to boost its non-oil revenues, PIF also invested USD 1 billion in Lucid Motors to fund the electric vehicle company’s commercial launch in 2020. The company plans to use the funding to complete engineering development and testing of the Lucid Air, construct its factory in Arizona, and enter production for the Lucid Air to begin the global rollout of the car starting in North America.

Meanwhile, Saudi Aramco broke ground on the King Salman Energy Park (SPARK), located in the kingdom’s eastern province. SPARK is a 50-sq-km energy city megaproject that will position Saudi Arabia as a global energy, industrial and technology hub, with the first phase of the project set for completion by 2021.

SPARK has already attracted investments from foreign and local companies to produce and manufacture goods and services, with the first phase expected to yield around USD 1.6 billion. When fully operational, SPARK is estimated to contribute more than USD 6 billion to the kingdom’s GDP annually and create up to 100,000 direct and indirect jobs.

Apart from the big-ticket projects, there is also a focus on pushing through fiscal reforms, managing deficits and public debts and working toward shielding the Saudi economy from oil price fluctuations.

To address these issues, the government has launched several programmes and initiatives, such as the National Industrial Development and Logistics Programme (NDC), focused on developing the industry and local content in several sectors, such as renewable energy, military industries, exports and mining, according to Dr. Saad Alshahrani, general manager of Macro & Fiscal Policies Unit (MFPU).

A slew of fiscal reforms to gain investors’ confidence is also under way. These include privatisation programmes, development programmes of some of the productive sectors announced in the Vision 2030 initiative, and structural reforms in the economy, particularly in the labour market, Alshahrani said.

The Vision 2030 programme is in full swing at the moment, and is likely to accelerate further as authorities look to tick off a number of projects outlined in the National Transformation Plan 2020, which is part of the overarching project.