A bird’s eye view of ‘Neom City The Line’ unveiled by Saudi Arabia last year. At the time, Saudi Arabia described The Line as a linear city stretching over 170km, but major foreign media said the actual length would be only 2.4km. The scale of Saudi Arabia’s ‘Neom City’ project is expected to be significantly reduced compared to the original plan. Neom City is a large-scale project known to have a total project cost of up to 700 trillion won. Accordingly, expectations of receiving orders from the domestic construction industry participating in the Neom City project are expected to be significantly lowered.
On the 16th, major foreign media reported that the Saudi government would begin controlling the pace of development of the Neom City project. The British Guardian reported on a Saudi Neom the Line article with the phrase ‘End of the line’ in the title. The media said, “The mid-term goal of Neom City, the biggest project among Saudi Crown Prince Bin Salman’s plans, has been reduced.”
The Neom City project is to build a low-carbon smart city 44 times the size of Seoul near the Red Sea in northwest Saudi Arabia, and is a large-scale project with a total project cost of 700 trillion won.
Among the Neom projects, ‘The Line’ is a project to create a linear city that stretches over 170 km, and the domestic construction industry is expected to participate in this project, leading to a significant increase in orders. Currently, Hyundai Engineering & Construction and Samsung C&T have received orders for part of the Neom City The Line project and are currently carrying out the construction work.
However, in Saudi Arabia, the actual size of Neom The Line City is expected to remain at 2.4km, not 170km. The population target for Y Lein was previously known to be 1.5 million, but the recent forecast is said to have been reduced to less than 300,000.
Bloomberg News reported, “Representatives of the Neom Public Investment Fund and Saudi Arabia declined to comment,” and “(due to the scale-down effect of the Neom project), Saudi contractor Neom has begun laying off some workers.”
Accordingly, expectations for orders from the domestic construction industry participating in the Neom City project are expected to be significantly lowered. In the second half of 2022, domestic companies and organizations have signed a Memorandum of Understanding for the Neom project worth 40 trillion won, but the construction industry believes that it will be difficult to turn it into a real contract.
A construction industry official said, “The Neom project was promoted as if it were a large-scale project worth 700 trillion won, but the actual amount of work secured by domestic construction companies is only about 1 trillion won.” “Expectations for receiving orders for the Saudi Neom project in 2022 have increased, but the MoU “After that, there were no companies other than Hyundai Engineering & Construction and Samsung C&T that signed the main contract in truth,” he said.
Another official in the construction industry said, “It appears that most of the MoUs signed during the NEOM project will be difficult to lead to major contracts,” adding, “Although many Memorandum of Understanding related to NEOM, only a small number will do so. able to reflect the actual performance of overseas construction orders.” Reporter Park Soon won ssun@dt.co.kr
[ 저작권자 ⓒ디지털타임스, 무단 전재 및 재배포 금지 ]
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