 |
| NEOM, Futuristic Mega-City Saudi Arabia |
Saudi Arabia is attempting to do something that's never been done before home to an estimated 15.7 percent of the world's proven oil reserves and the single largest economy in the Middle East and North Africa they are seeking to build from scratch a billion-dollar Tech Mega City that will run on 100 renewable energies. The world's largest oil exporter wants to build a city that will be powered by renewable energy sources such as wind and solar. Neo means new future and its meaning comes from a Greek word Neo means new and the Arabic word Mustakbal meaning future Saudi Arabia is developing this new Mega City for its economic return’s social transformation potential and positive environmental impacts. The first section of the city is expected to be complete by 2025.
Economical Benefits
Saudi Arabia is the largest country in the Middle East and is considered an emerging market economy. Oil accounts for 90% of Saudi Arabia’s export earnings and 42 percent of its GDP in 2019 the government launched division 2030. This is a bold economic diversification plan to transition their economy away from its dependency on the oil revenues part of the vision 2030 is to build a 500-billion-dollar tech mega-city named NEOM located in the Northwest corner of Saudi Arabia that will connect the three continents Africa, Europe, and Asia as well as connect to Jordan and Egypt.
What Exactly Is Neom City All About?
New York City 230 square miles to be exact and could be the first project
of its size to run without fossil fuels kind of ironic, isn't it? NEOM is only a four-hour
flight away for forty percent of the world it is said to be not only a
destination but a home for people who dream big and want to be part of building
a new model of sustainable living. The city will feature investment sectors such
as energy, water mobility entertainment, and culture, food manufacturing, media, tourism, sport design, and construction services, health well-being in biotech
education and technology.
Tourist Paradise
Saudi
Arabia Vision 2030
Why Crown Prince Muhammad Bin Salman Building Neom?
It's not a simple answer, but let's dive into it. Saudi Arabia seems to have found itself at a significant economic crossroads one of the most obvious reasons are falling and fluctuating oil prices and the fact that oil doesn't last forever oil revenues in the quarter of 2020 fell 24 billion dollars from a year earlier to 34 billion Dollars. This means that total revenues for Saudi Arabia decreased by 22 percent ultimately less revenue means less money to spend on infrastructure and programs in a country that's economically boomed and gained wealth because of oil decreasing revenues don't bode well for their budget in 2016 BBC reported that because of the volatile oil prices Saudi Arabia’s deep pockets were evaporating quickly other reasons, Saudi Arabia finds themselves at a crossroad are that one car and related vehicles are becoming more and more efficient and relying on lesson on oil with the rise of hybrid and electric vehicles, the overall demand for oil is decreasing globally and expected to continue to decline as the impact of current events continues to constrain travel and broader economic activity.
Why Crown Prince should move towards
diversifying their economy?
Less Dependent on Oil
The United States is also producing more oil than ever before and they have held the top spot for oil-producing countries in the last 6 years America overtook Russia in 2012 for the number two spot and surpassed former leader Saudi Arabia in 2013 to become the world's top oil producer much of the increased us production is attributed to cracking. There has always been some skepticism over the actual size of Saudi Arabia’s oil reserves as we know, unlike oil is not forever oil is a non-renewable resource once it's gone it's gone forever. Looking forward to the future global efforts to combat climate change also creates a huge amount of uncertainty about demand for oil in the future climate change also poses direct impacts to Saudi Arabia as they are particularly vulnerable as most of its ecosystems are sensitive, renewable water resources are currently limited and its economy remains highly dependent on fossil fuel exports at the moment and six last but not least the country also has significant demographic pressures as the population continue to grow.