![‘Deserted in the Desert’; Neom’s Drawbacks Enlightened Following CEO Dismissal [Part I]](https://al-sarira.com/wp-content/uploads/2024/12/yi.webp)
The $1.5 trillion ambitious Neom mega-city plan in Saudi Arabia has gotten into fresh obstacles. Neom is an essential aspect of the Saudi Arabia’s financial diversification strategy, Vision 2030. The venture’s management team has been rocked by the latest resignation of Nadhmi al-Nasr, the project’s longstanding CEO. Al-Nasr’s resignation was confirmed officially by Neom yesterday. There was no clarification provided in the declaration. For the past six years, al-Nasr has been in overseeing the developments.
Based on remarks by people who are acquainted with the circumstances, unsatisfied operation goals were an important factor in al-Nasr’s dismissal. His problematic approach to leadership, which includes intimidation and insults directed at the staff, was additionally disclosed by sources.
It is said that Al-Nasr rejoiced about exploiting his workers like slaves. This resignation signals a major modification to management at an important period of growth. Neom is rushing to accomplish its 2030 achievement objectives.
Aiman al-Mudaifer of Saudi Arabia’s Public Investment Fund has assumed the Neom leadership. Al-Mudaifer has knowledge of managing the fund’s development and real estate initiatives. As stated in Neom’s declaration, he is projected to improve organizational consistency, flexibility, and profitability.
Since six years ago, Al-Mudaifer has been serving as the director of the PIF’s Regional Real Estate Department. He has become known for his comprehensive grasp of the technical obstacles and Neom’s goal.
Al-Nasr’s dismissal corresponds with suspicions that the venture’s initial objectives are being substantially lowered. At one point, the project was touted as a $1.5 trillion metropolis that would have been 33 times larger than New York. However, as complications arise and costs increase, Neom’s preliminary strategy has been modified.
Original Ambitions
By the end of 2020s, Neom was anticipated to hold up to 1.5 million individuals, based on early concepts. However, the latest projections imply that by 2030, it would be capable to host less than 300,000 people. likewise, it has been projected that just 2.4 kilometres of the originally 170-kilometer mirrored city “The Line” might be constructed by the same time.
Neom encountered economic struggles notwithstanding of its contemporary appearance. An insufficient oil income compounded the obstacles. Petroleum budget is crucial to the initiative. For the Saudi Arabian government to stay within its budget expectations, oil price must be around $100 per barrel.
According to current sources, oil prices are currently 25% below that figure. The country’s cash reserves for Vision 2030 programs have become limited as a consequence. According to reports, the $925 billion PIF has changed its approach and priorities by focusing on programs with a better chance of accomplishment.
Unwillingness from financiers is still a major challenge for Neom. Western financial institutions and investment sectors have been cautious to invest in the huge venture. Saudi Arabia has been making consistent moves to draw in foreign funding during the recent years.
A specific amount of funding has been secured for further Vision 2030 initiatives. However, reservations have been aroused by Neom’s enormous extent. The utopian “The Line” design and other ambitious bids, such as the submerged industrial base and the worldwide trade center, have been challenged frequently for their sustainability.
The working circumstances for Neom’s workers have also been troublesome. There have been accusations of challenging circumstances at work for foreign laborers. The project has been further impeded by claims of prejudiced behaviour by certain employees.
(To be continued)
