NEOM is a project whose idea first came to light in 2015 through Saudi economic sovereignty, with the aim of becoming, within a decade, a global commercial hub located in the northwestern Arabian Peninsula and extending across Jordanian, Saudi, and Egyptian territories. It is envisioned as a smart center that develops and utilizes the latest studies and applications related to artificial intelligence, advanced automation, and renewable energy, while serving as an investment capital specialized in nine core sectors selected according to the region’s needs and their role in raising Saudi Arabia’s gross domestic product.

At an estimated cost of half a trillion dollars, the project is to be developed in phases through a partnership between the Public Investment Fund and global companies and investment funds. The mechanisms and stages of financing remain unclear so far, as does whether part of the project will be listed on international markets, as was planned for Saudi Aramco in 2018. What has become clear, however, is that Saudi Arabia, through this project and in parallel with other major initiatives such as the Red Sea Project and Qiddiya, seeks to deploy the largest possible share of its cash flows into locally managed investment, but under globally competitive rules.

The central question concerns the feasibility of NEOM, especially as its concept emerged alongside the lack of evident success or expected completion of the King Abdullah Financial District in Riyadh, King Abdullah Economic City in Jeddah, and Jazan Economic City. Although differences in management offer part of the explanation — with the Saudi government managing the King Abdullah Financial District and Jazan Economic City, the private sector managing King Abdullah Economic City, and the Public Investment Fund overseeing NEOM — there is a factor more influential in determining the feasibility of such megaprojects: the scope of public policy. All previous projects, with the exception of NEOM, are subject to Saudi Arabia’s existing laws and policies, and are intertwined with its culture, society, religion, and citizens’ customs. This creates a gap between foreign investors and those projects, a gap that undoubtedly slows the realization of their visions.

NEOM is different. It is an administratively, legally, culturally, and socially distinct zone, linked to the Kingdom only through sovereignty. It is subject to different internal laws and policies — modern policies designed to serve investors, employees, and tourists in a manner aligned with the project’s vision. That vision is to achieve the highest possible return on investment in NEOM. It depends fundamentally on the objective of productive efficiency, not on limiting opportunity by ethnicity, religion, sect, or school of thought. The fact that NEOM extends across Jordanian, Saudi, and Egyptian lands does not mean that Jordanians, Saudis, or Egyptians are more entitled to employment there. Productive efficiency and the qualifications of the applicant are what distinguish one candidate from another, regardless of any other factor.

These elements of internal policy, together with many other foundations that serve the same objective, are precisely what global capital seeks: a fertile environment capable of generating the highest return on investment, in line with the project’s vision. Saudi economic sovereignty, through this approach, seeks to demonstrate its awareness that the project’s success depends on the success of those who invest in it. This has been reflected in several statements by the Saudi Crown Prince, who made clear that NEOM’s mission is not to create jobs specifically for Saudi citizens, but to build a global hub open to all groups, where opportunities are available to everyone. At the same time, he also expressed awareness that achieving greater returns from NEOM will unquestionably benefit the Public Investment Fund and its partners, which in turn will support the Saudi government in launching new domestic projects that create additional opportunities for Saudi citizens, since those sectors remain internal and subject to Saudization policies.

NEOM’s location and its extension across Jordanian, Saudi, and Egyptian territories clearly indicate an effort to employ every available resource to ensure the project’s success, whether natural, commercial, or political. It lies in a politically unstable conflict zone and near the Suez Canal. This makes it a region hungry for, and prepared to cooperate with, any expansionary activity capable of improving its economic performance. As a comparable model, one may recall Singapore when it was marginalized by Malaysia, and when it sought commercial stability by using available resources — economically and politically — to achieve political stability. By that model, there is no doubt that NEOM may one day become the Singapore of the Red Sea.

What is the most important question when dealing with economic development?

Development becomes sustainable when it builds productivity, skills, institutions, and exports capable of generating renewable value. Through the angle of trust, the result appears not only in declared language, but in the policy’s ability to change incentives and outcomes.

What is the most important question when dealing with economic visions?

A serious vision reveals the cost of transition, assigns responsibility, and measures results; otherwise it remains a general promise without executive force. Through the angle of trust, the result appears not only in declared language, but in the policy’s ability to change incentives and outcomes.

What is the most important question when dealing with exports?

Exports reduce fragility because they widen income sources and force the private sector to test its capacity in markets not protected by the state. Through the angle of trust, the result appears not only in declared language, but in the policy’s ability to change incentives and outcomes.

How does economic zones and strategic development affect the economy?

Its effect appears in how costs, incentives, and resources are managed, and in the economy's ability to turn decisions into sustainable value. The direct context is nEOM’s economic logic, policy autonomy, regional location, and potential to become a global investment hub.