Background Information
The Line is a comprehensive economic and development program that was launched by Saudi Arabia in 2020 as an initiative to rapidly advance the kingdom’s transition to a diversified future economy.
The project seeks to transform about 175 km of coastline around the city of Neom in northwest Saudi Arabia into a smart, model city. The new development will be a hub for business, innovation, recreation, and nature and will connect three existing cities.
The Line will be constructed with the goal of creating vibrant, equitable, and sustainable communities and lifestyles through heavily focused infrastructure development, including the construction of roads, green spaces, and more.
Additionally, the program intends to spur economic growth and create opportunities through public sector spending, private sector partnerships, and investment from global businesses.
Relevant Data
The Line is an ambitious many-year program and the scope of its ambition can best be seen in its investment numbers. The estimated total size of the project is set to be USD 500 billion, making it one of the largest development initiatives in the world.
The program is understood to cover approximately 5,000 sq km and will involve the construction of at least 23 new ‘habitats’ and 24 city clusters including residential, leisure, workplace, and retail districts.
Proposed to be constructed along the Red Sea, The Line may encompass the construction of new airports, transportation networks, and attractions along the coastline.
The program is also suggested to offer valuable environmental benefits, increasing green space coverage to cover more than 50 per cent of the project’s total area.
Perspectives from Experts
Experts have cited the need for existing cities and regions in the Middle East region to take greater responsibility for their growth and development, and The Line does just that.
The Line was proposed as a key lever to shift the Kingdom’s economy away from its dependency on oil and to offer economic stimulus to help it cope with the effects of the pandemic.
Experts have pointed out that people have recognised the need to preserve or rebuild local and national identities to generate a sense of hope for the future as traditional industries fade in importance.
Experts also believe that government stimulus is good for development, if it is targeted and focused in the right areas. They believe The Line will create jobs and offer opportunities for youth and emerging talent.
Analysis and Insights
The Line is a monumental project with the power to transform not only Saudi Arabia’s economy, but also how the country is perceived around the world. It presents an opportunity for progressive growth, regardless of size or industry.
The project is estimated to create up to 380,000 job opportunities by 2030 and is expected to offer housing to millions of residents, thereby uplifting the Kingdom’s environmental and social standards.
The Line has the potential to be an inspiration to the development of other countries in the region, something that was highlighted in Saudi Arabia’s Vision 2030.
The concept of smart cities is increasingly being adopted around the world, with an ambitious attitude of technological innovation, sustainability, and economic development at its core. The Line signifies a major milestone in the implementation of this concept.
The project presents a major challenge and opportunity for the country, as it needs to ensure that it is well-managed with ample attention being paid to all aspects of its development and implementation.
Financial Impact
The Saudi government’s USD 500 billion investment in The Line is one of the largest foreign direct investments (FDI) the country has ever seen. It is expected to boost the country’s FDI inflows, which could directly benefit more than 20 other countries through trade.
The project could also lead to an increase in FDI investment in the nation’s non-oil sectors, with potential to attract positive investments into research & development, technology, and other industries.
The Line is also expected to create a ripple effect on other industries, such as logistics, in the region, as well as leading to an increase in consumer spending, providing the local economy with new sources of growth.
The project has the potential to be an accelerator for regional development and global trade, increasing competitiveness between regional and international markets.
Additionally, The Line has the potential to bring foreign capital gains to Saudi Arabia, as it is expected to attract national and international investors, potentially leading to higher returns on investments.
Environmental Impact
The Line has been presented as an ecological initiative that seeks to aid in the revival of forests and introduce new parks and green spaces to Saudi Arabia.
The Line could tackle the region’s existential environmental issues, such as the environmental degradation, air and water pollution, land degradation, deforestation, littering, and waste management.
Creating green spaces and parks that are open to the public could also contribute to combating urban sprawl, which is a major environmental concern in Saudi Arabia.
The Line will also strive to become a model cities for other cities in the Middle East and around the world in terms of energy consumption, pollution, and emissions.
The program is proposed to be one of the world’s most sustainable cities, targeting to source 90% of its energy from renewable sources and zero carbon emissions, having efficient public transport systems, and building practices that are aimed at reducing waste and emissions.
Through this initiative, the government of Saudi Arabia is looking to introduce a different model of development – one that is sustainable, equitable, and integrative of new technologies and clean energy initiatives.
Closing the Gap
The Line presents an opportunity to close the gap between nations and bridge the digital divide between global cities. The program is aiming to become a model 21st century city with state of the art infrastructure, creating opportunities for citizens, businesses, and visitors alike.
The Line offers a platform to promote the world’s greatest minds to [develop innovative solutions to a number of global challenges faced around the world, such as climate change, poverty, and more.
The program could have a significant impact on the way in which citizens interact with the world around them, allowing citizens to grow and progress socially and financially.
The Line projects could provide a platform for companies to develop and promote advanced technologies, including the Internet of Things, artificial intelligence, and virtual reality.
The Line could also be a platform for new services, with companies taking advantage of the opportunities to develop new economic models, such as pay-per-use proposition and online delivery models.
The Line could be a gateway for emerging technologies and a stepping stone towards greater prosperity. The project is a major step towards achieving Saudi Arabia’s Vision 2030, and could pave the way for greater development in the region in years to come.
