Neom is a challenge and an opportunity
28 April 2023
This package on Neom also includes:
> SITE REPORT: World’s largest piling project shifts to The Line’s marina
> INTERVIEW: Neom to fix construction
> ANALYSIS: Neom becomes real-world building project
> PILING: Chinese firm wins Neom marina piling work
> MOVIE SET: Neom advances plans to be leading movie destination
> TUNNELS: Neom tenders Delta Junction tunnel contracts
> OXAGON: Work to start for $1.5bn Oxagon wind turbine plant
Read the May 2023 issue of MEED Business Review
Commentary
Colin Foreman
Editor
When arriving at Tabuk airport in northwestern Saudi Arabia, the first thing that visitors to Neom realise is the vast area that the project covers.
Tabuk, which is at the inland extent of Neom, is a two-hour drive from the start of The Line on the Red Sea coast.
Once at The Line, the enormity of the construction work required to make Neom a reality can start to be appreciated.
Although work on site is still in the early stages, it is already the world’s largest piling project, with more than 4,500 piles reaching down to a depth of 57 metres driven so far, which at times has meant 60 piles installed a day.
To give those numbers some meaning, the world’s tallest building, the Burj Khalifa in Dubai, has 194 piles driven to a depth of 43 metres.
The scale of The Line and the other developments at Neom have made it a projects market in its own right.
Combined, they awarded $13.6bn of contracts in 2022, more than established markets such as Riyadh, Dubai and Abu Dhabi. The total for 2023 is expected to be even higher.
Delivering such a large volume of work is a major challenge for the construction industry, and the issues involved, particularly those of securing resources, have been well documented.
The scale of The Line and the other developments at Neom have made it a projects market in its own right
What has been discussed less is the unique opportunity that this scale creates.
As the world’s largest construction project, it offers the chance to demonstrate that integrating design and construction on mass to become a more industrialised process can lead to greater efficiency in terms of time, cost and environmental performance.
As Neom becomes too large to ignore, companies working in the region will have to decide whether the rewards of those opportunities outweigh the risks that the challenges may pose.
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That reputation has been tested by the missile and drone attacks that began on 28 February. Whether the GCC’s safe haven status has been damaged depends on perspective.
For some, the fact that attacks occurred fundamentally changes how the region is viewed. For others, the ability to absorb a serious shock, respond quickly, and keep daily life and businesses functioning demonstrates resilience.Any assessment of safety is also relative. Many people and businesses that relocate in the GCC do so not only for opportunity, but because of dissatisfaction elsewhere. Common reasons include limited economic prospects, high taxation, distrust in political leadership and concerns about personal safety. Even with the recent conflict, the GCC may still compare favourably for those considering these factors.
There is no doubt that missile and drone attacks are extremely dangerous, and the fear of further incidents can linger. Even if attacks are infrequent, the uncertainty matters. It can influence personal decisions, travel advice, and the cost of insurance and risk management. These perceptions will shape the region’s attractiveness.
Safety concerns vary. In many parts of the world, higher levels of crime are an everyday worry for residents and businesses. For some, the GCC may still feel like the better option, provided the current tensions do not become the new normal.
How this question is answered will play an important role in how the region’s economies perform in the period ahead. If confidence returns quickly and the risk is seen as contained and manageable, investment and hiring will likely rebound faster than many expect. If uncertainty persists or escalates, the road to recovery will be a long one.
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Dubai seeks consultants for Al-Khawaneej stormwater project3 April 2026
Dubai Municipality has issued a consultancy tender to assess and upgrade the stormwater drainage system serving the Al-Khawaneej First residential district in northeastern Dubai.
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The bid submission deadline is 23 April.
The works form part of Dubai’s wider efforts to strengthen flood resilience and support sustainable urban infrastructure development.
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