[Q&A] NEOM CEO confident of building unrivaled futuristic city in desert

Nadhmi Al-Nasr, CEO of NEOM / Courtesy of NEOM

'NEOM is being developed to find solutions to huge challenges facing humanity'

By Kwon Mee-yoo

The $500 billion NEOM development is a highly ambitious and innovative mega project of Saudi Arabia, developing a series of smart cities along the Red Sea in the northwestern region of the country. It is attracting attention from around the world for its scale and innovation.

"A new development built from the ground up at the global crossroads, NEOM incorporates the world's most advanced technologies to redefine how we live, work and play," NEOM CEO Nadhmi Al-Nasr told The Korea Times.

NEOM is a crucial component of Saudi Arabia's Vision 2030, as it is a tangible embodiment of the ambitious plan to diversify the country's economy and improve the quality of life. Al-Nasr emphasized that NEOM's role in Vision 2030 is to serve as a catalyst for finding innovative solutions to these global problems.

"As a region, NEOM is being developed to find solutions to the huge challenges facing humanity caused by issues that include climate change, unchecked urban development and environmental degradation. We need new technologies that address these challenges, and we need them scaled quickly. This is the basis of Vision 2030 and NEOM's role within it," he said.

The CEO said NEOM's assets are being built to be predictive and proactive, powered by artificial intelligence (AI) to "continuously foresee ways to make life easier."

NEOM aims to make use of a significantly higher amount of data compared to other smart cities. Specifically, it is estimated that 90 percent of available data will be utilized to enhance its infrastructure capabilities, whereas existing smart cities use only about 1 percent of available data.

"NEOM will become a blueprint for a sustainable community that is not disruptive to its surrounding nature, a community that enhances the lives of its residents, promotes a circular economy and leaves the environment better than how we found it," he said.

According to Al-Nasr, NEOM currently employs more than 2,000 individuals from over 80 countries who work in design, implementation and construction of the 26,500 square kilometer project.

"A vision of this scale relies on our ability to invite partners and recruit passionate and disruptive professionals who share our values, drive and ambition," he said, emphasizing the importance of collaborating with like-minded partners and welcoming Korean companies and investors to the endeavor.

Korea has a history of involvement in Saudi Arabia's development initiatives, dating back to the 1970s. It is ready to elevate its relationship with the Middle Eastern nation by playing a key role in the NEOM project.

Al-Nasr said that the partnership between Korea and Saudi Arabia in NEOM had the potential to become a symbol of a successful collaboration.

Below is an excerpt from the interview with Al-Nasr.

An illustration of THE LINE, a linear city that stretches 170 kilometers in the desert of northwestern Saudi Arabia. It is the first development project of NEOM. Courtesy of NEOM

Q. Please provide a brief overview of the three main regions of NEOM.

A. So far, we have announced four main developments within NEOM. THE LINE announced in January 2021 is our revolutionary 170-kilometer linear city redefining urban development. In November of the same year, we launched Oxagon, our reimagined manufacturing and innovation city. Last year started with the announcement of Trojena in March 2022, which will add to NEOM's sport and tourism offering with a sustainable year-round mountain destination. We ended last year by announcing the establishment of Sindalah, NEOM's first luxury island and yacht club destination in the Red Sea, which will be the first community to welcome visitors by 2024.

Q. What has been the most challenging aspect of realizing the vision for NEOM since you assumed your position?

A. The scale of NEOM is enormous and ensuring no disruption in construction and material supply is one of the key challenges. To overcome this, we work with many world-class partners and providers and receive guidance from global talents and leaders in their respective fields.

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THE LINE, for example, is a linear city that presents a radical new approach to organizing and layering urban functions in what we call "Zero Gravity Urbanism." Hyper-proximity will become the new normal for urban development: a feature that promotes exceptional social interaction and cultural exchange by bringing people closer than ever before.

When we look at Seoul for comparison, we see that it has more than 10 million residents. It is a city that currently achieves a density of about 17,000 people per square kilometer, with plans to have 10-minute neighborhoods. As a greenfield site, THE LINE will reach an estimated 80,000 people capable of enjoying the pleasures of a five-minute city. There will be (and are) multiple industrial, engineering and social challenges that will need to be solved as we bring our concepts to life ― this is what makes the project so radical and exciting.

An illustration shows a rendering of Oxagon, an innovative, floating island of NEOM. Courtesy of NEOM

Q. What sets NEOM apart from other similar projects in Saudi Arabia and globally, given your experience with various development projects in Saudi Arabia?

A. Our approach to the NEOM project involves three primary lenses: how we redefine livability, businesses and nature conservation as we create a region with no legacy infrastructure and limitations currently associated with global cities. If you look around the world, the city model is exhausted. Over two-thirds of the world's population is expected to live in urban areas by 2050. That's almost 7 billion people that need to be accommodated in sustainable and livable communities without further straining our planet's resources. The world cannot achieve sustainable development unless we transform how we build and manage our cities.

That's why at NEOM we are not only transforming the Design and Construction sector, we are also looking at 13 other sectors, comprising Energy, Water, Manufacturing, Education, Sport, Technology and Digital, Health and Well-being, Financial Services, Tourism, Media, Entertainment and Culture, Food and Mobility. We believe that operating across sectors is the only way to ensure the futureproofing of our solutions.

It is unfair to compare NEOM with any other city currently under development. NEOM is a new way of life. Saudi Arabia's Vision 2030 is investing in building new cities and communities to develop and satisfy its immediate and long-term goals and catalyze the kingdom's economic and social transformation.

Q. NEOM is estimated to cost approximately $500 billion, with the majority of financing coming from the Public Investment Fund (PIF) of Saudi Arabia. How feasible is this financing plan and are there any other potential sources of funding for the project? What strategies do you think could be effective in attracting Korean investors to NEOM?

A. NEOM's incredible scope and scale mean that it is a project with a sizable cost, requiring investors who can appreciate its immense potential and provide the financing necessary to achieve its goals. At NEOM, we are fortunate to have Saudi Arabia's PIF as our main financing partner. PIF is one of the largest sovereign wealth funds in the world, currently the sixth-largest worldwide, with more than $600 billion in assets under management (AUM). It is committed to actively supporting the development of key economic sectors in Saudi Arabia, including digital infrastructure, sustainability, energy and tourism ― all key facets of NEOM.

For this reason, PIF is providing $500 billion in support for the project. However, NEOM is also attracting private investors from across the globe who share in our mission to address humanity's challenges through innovation and collaboration. Private investment in NEOM will enhance our capability to address the urban and humanitarian challenges we seek to remedy. PIF is our foundational financing partner and has made it possible to realize the early phases of this plan. Private investment will take NEOM the extra mile.

NEOM offers Korean and other investors and entrepreneurs an attractive environment for business and investment, all supported by a progressive regulatory ecosystem compatible with international norms and conducive to economic growth. We believe these are key aspects that will ensure Korean investors' trust and interest in the project and guarantee their continuous commitment to come to NEOM, innovate, incubate and commercialize groundbreaking technologies that accelerate human progress.

An illustration of Trojena, a mountainous region within NEOM which will be a hub for sports and tourism activities throughout the year. Courtesy of NEOM

Q. What are some potential areas for investment or participation in NEOM that Korean companies may be interested in exploring?

A. As discussed, NEOM is more than a sustainable and smart region and is looking to inspire the world and collaborate with forward-thinking partners across its 14 sectors. With its cognitive cities, NEOM will benefit from collaborating with Korea's exceptional informational technology and connectivity enterprises. This is an area that South Korea already has extensive experience with, as it was a pioneer in the development of smart cities with the inauguration of Sejong nearly 20 years ago, followed by the development of Busan's Eco Delta Smart City more recently.

With a commitment to efficient and sustainable mobility across NEOM, the region looks forward to collaborating with Korean enterprises to develop the region's mass transit systems. Through Oxagon, we are looking to revolutionize sustainable and efficient manufacturing practices. Collaboration with Korean enterprises will keep NEOM at the leading edge of advanced and clean manufacturing technology.

We look forward to learning all the insights that our Korean partners have to offer so that we can build upon their successes at NEOM.

Q. What measures is the NEOM project implementing to promote environmental sustainability and how might Korea and Saudi Arabia work together to achieve sustainability goals within NEOM?

A. NEOM's purpose is to develop ways of adapting to the impact of climate change, new approaches to urban development to avoid urban sprawl and better work in harmony with nature. Every aspect of NEOM's development reflects this purpose. NEOM will be the world's first large-scale renewable energy system and climate-positive society. It will be a global hub for clean energy generation, manufacturing, technology, research and innovation. Once operational, NEOM will be powered by 100 percent renewable, clean energy, including solar, wind, hydrogen and green hydrogen-based energy.

Energy is not the aspect of sustainability we are concerned with. NEOM is adopting a circular economy approach in all its business activities. As part of this strategy, we are integrating circular economy principles from the start, developing and operating circular assets, closing resource loops and creating the optimal conditions for circularity by leveraging greenfield opportunities. One good example is how NEOM will manage the region's wastewater, desalination and commercialization of the resulting brine, which is usually considered a waste output. We will use the brine byproduct as feedstock to produce valuable industrial materials that can be used locally or exported internationally. This approach allows NEOM to achieve 100 percent zero liquid discharge and conserve the environment.

Clearly, there are numerous initiatives and projects where Korean companies will be interested in joining hands and setting a global benchmark for sustainable business practices and environment conversation.

The interior of THE LINE, a linear city designed to operate solely on renewable energy sources / Courtesy of NEOM

Q. Who does the NEOM project envision as its future residents and how do you think this project could contribute to Saudi Arabia's globalization and position as a hub in the Middle East?

A. NEOM will be the home and workplace for more than 9 million residents from around the world. It will foster a culture of exploration, risk-taking and diversity among its residents, all supported by a progressive law that promotes economic growth. As a hub for innovation, entrepreneurs, business leaders and companies will come to NEOM to research, incubate and commercialize new technologies and enterprises.

While NEOM is being conceived, driven and initially backed by Saudi Arabia, it is an international project that will be led, populated, and funded by people worldwide. The NEOM project will benefit and advance not only Saudi Arabia, but also the region and the world.