Top-down, large-scale urban development presents pitfalls, which Saudi Arabia’s NEOM project makes apparent. Authorities have ceased awarding new contracts for the scheme, and the kingdom’s pre-budget statement for 2026 omitted it.
Planners dramatically scaled back the original plan for The Line, a vast structure for a huge population, to support a small fraction of the original inhabitants.
The cutback occurred after the kingdom’s sovereign wealth fund made a massive write-down on its gigaprojects. Practical planning did not support the project’s ambition.
A Parallel Case
Malaysia’s Forest City offers a comparable setup. Developers planned the colossal, Chinese-backed venture to house a huge population on reclaimed islands near Singapore.
Today, it sits mostly empty, causing a severe financial blow to its builder, Country Garden.
Structural parallels exist between the undertakings. Developers designed each as an isolated development for foreign investors. Each also caused damage to sensitive coastal wetlands.
The investment-focused model meant properties functioned as financial assets, which prevented the formation of a genuine neighborhood. For Forest City, an initial surge of sales from China stopped after the country imposed new currency controls.
Consultants and Clients
The project’s flaws connect to the consultants and the decision-making atmosphere. A Saudi minister stated that government ministries had relied on external firms, which let them apply standardized templates to unique local contexts. In doing so, they served to validate preexisting notions.
The primary cause lies with the people in charge who pursued an unrealistic dream. Reports of authorities ignoring internal warnings on costs and timelines, combined with an environment that discouraged feedback, produced the eventual end game.
A Different Development Model
Planners integrated past megaprojects with existing setups. Their workability derived from their link to economic reality; they served as drivers that enhanced existing populations and trade routes.
Modern megaprojects often adhere to a fixed initial concept, which makes them inflexible. A common outcome is that most large-scale projects exceed their budgets. The massive sum spent on The Line has left incomplete construction sites.
Abstract Visions and Practical Foundations
The evidence points toward sustainable development needing a step-by-step method. A responsive stance to the needs of local populations is called for. Urban areas expand well as infrastructure follows organic growth.
Saudi Arabia and Malaysia possess the resources for major development. The viability of their undertakings depends on strategies they build upon existing strengths. They must improve existing systems and consult local communities.
Above all, they must prefer accountability. Governments should select projects that deliver positive, measurable results, a goal that needs openness in decision-making.
NEOM’s outcome confirms that ambition lacking practical foundations brings costly consequences. While consultants may move on, the economic cost remains in abandoned sites and wasted money.
Governments must build genuine change upon existing socioeconomic conditions.
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