Neom – The city of the future

Comments (0) Architecture, POLITICS, World

neom

Neom is the city of the future, a pharaonic project promoted by Saudi prince Mohammed Bin Salman.
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This city, which will be three times bigger than New York, will be built on a portion of land slightly larger than Sardinia on the shores of the Red Sea, in the Gulf of Aqaba.

The city will be structured as a kind of city-state, with an autonomous and more permissive legislative system than the strict Islamic laws that there are in the other cities of Saudi Arabia, will be in effect a hub, both political and economic, similar to what is Hong Kong for China.

The city will be on the border with Jordan and Egypt, with which it will be connected via a bridge over the gulf.

The whole city will work thanks to the energy produced from sustainable sources.

In fact, even Neom is part of the young prince’s plan to free Arabia from its economic dependence on oil.

Just like their UAE “neighbors” are doing, with Dubai in the front row, they too understood that the time has come to diversify their income.

The Neom project has a huge cost, we are talking about 500 billion euros, more than two and a half times the entire Greek GDP.

Even though Saudi Arabia is an extremely rich country, it has, however, for a long time been declining growth due to the deflation of oil prices.

The state deficit was in 2015 of 100 billion, halved in 2017 thanks to the introduction of capital deriving from the Saudi monarchs reserves, reserves that were worth 700 billion in 2015 and 500 in 2017. In 2017 it was also happened that the GDP had a contraction for two consecutive quarters and in 2016 the monarchy gave life to its first spending review, cutting bonuses to public employees, which in Arabia are 2/3 of workers and also taking away many public subsidies.

Furthermore this year in January, in Arabia as in Dubai, the Vat at 5% made its appearance.

Of course, there is always talk of science fiction for those who live in a country like Italy that has a VAT of 22% and pay taxes between 40 and 70% on revenues.

These data, however, are just what more than anything else has made the Saudi prince lean towards the creation of the Neom project.

Neom will be the hub of innovative start-ups, which will have to attract a lot of foreign capital.
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In fact, in addition to renewable energy, there will be a great focus on innovation in the water sector, on biotechnologies, on the food supply chain, on digital and on advanced industry.

Neom will not only be a city to live in, but will also be a huge industrial and scientific hub.

In addition, it will also focus on the entertainment industry.

It was precisely this prince who first allowed to have a concert open to the public in Arabia and open the cinemas.

Returning to economic means to create Neom, in addition to foreign capitals and the public investment fund of Arabia of which the prince is president, capitalized for 230 billion, will serve other money that they intend to reach with a 5% IPO of the oil company of state, the Aramco.
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The 5% IPO of the Aramco would be the biggest IPO in history, which would put about 100 billions in the pockets of the investment fund.

The IPO will be on the London stock exchange, but if it was announced that it would happen in 2018, unfortunately the times have lengthened and Arabia has announced that it will certainly not happen before 2019.

Speaking of dates, it must be said that the Neom project is part of a project that is in turn even larger, with the 2030 as its date of completion, indeed it is called Vision 2030, aimed at economically and socially renewing all of Saudi Arabia.

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