Saudi Arabia to build new $500B city

Could Saudi's new 'NEOM' overtake Dubai?

Oct.October 28, 2017 09:00 AM

(Alan Chia)

This week Saudi Crown Prince Mohammed bin Salman announced his government would be building a new city named NEOM to offer residents a different lifestyle — and legal code — than the rest of the country.

Spanning 10,000 square miles, NEOM will be located in the north west end of the country with parts of the new city spilling into neighboring Jordan and Egypt. The Saudi government has committed to $500 billion in financing and announced the city’s development will be driven by additional investors.

For London School of Economics professor Steffen Hertog, NEOM is a larger version of free zones which have been most successfully implemented in Dubai; these areas allow businesses to function according to different tariffs, regulations and laws.

“In Dubai, this has worked well, but attempts to copy it have done less well in the region,” he told Bloomberg News. “If [NEOM] is to be an international hub, it needs to offer something better than Dubai, which is a high bar to cross.”

The announcement of NEOM comes amid a series of new initiatives launched since bin Salman’s rise to power.

[Bloomberg News] — E.K. Hudson

Related Articles

U.S. Rep. Alexandria Ocasio-Cortez and Sunnyside Yards (inset) (Credit: Getty Images and Wikipedia)

AOC resigns from Queens megadevelopment steering committee

Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

Trump’s Opportunity Zone program is under investigation

The agreement was signed today at UBC’s New York Council offices in Manhattan by Nathan Blecharczyk, Airbnb co-founder, Chief Strategy Officer, and Frank Spencer, General Vice President of UBC.

Airbnb hammers out partnership with carpenters’ union

Fotis Dulos (AP Images/ Erik Trautmann)

Connecticut developer Fotis Dulos charged with murder

Pier 40 and Gov. Andrew Cuomo (Credit: Wikipedia and Getty Images)

Cuomo kills Pier 40 redevelopment plan

CW Realty’s Cheskie Weisz  and a rendering of 251 Front Street (Credit: CW Realty and Think Architecture and Design via New York YIMBY)

CW Realty plans luxury rental at controversial Vinegar Hill site

A rendering of Broadway Triangle and an aerial of Broadway Triangle (Credit: Magnusson Architecture via Department of City Planning and Google Maps)

Rabsky, Spencer land $70M refi for Broadway Triangle site

Renderings of 555 West 38th Street and Rockrose Development's Justin Elghanayan (Credit: Rendering by Pelli Clarke Pelli)

Rockrose lands $255M in financing for Hudson Yards project