Supported by Partner Engineering and Science, Inc.

Propmodo Technology

By Franco Faraudo · July 24, 2024

Greetings!

Neom, originally planned as a groundbreaking smart city under Saudi Arabia's Vision 2030, has been scaled back significantly due to criticism and investment shortfalls, now focusing mainly on high-end tourism. Plus, check out this week’s Propmodo Technology focus on Insurance and Risk Management with the support of our friends at Partner Engineering and Science, Inc.

Saudi Arabia’s Mega Project Neom Is Looking More Like a Resort Than a Smart City

We are only 24 years into the century, but if you had to pick a candidate for the development of the century, it would have to be Saudi Arabia’s Neom. The city is part of Crown Prince Mohammed bin Salman’s Vision 2030 plan to diversify the country's economy and reduce its reliance on crude oil sales. The original plans were grandiose and bordering on absurd, proposing a 660-foot-wide, 110-mile-long city called The Line, stretching from Neom Bay in the Red Sea to Tabuk, near the Jordanian border. The project was estimated to cost around $1.5 trillion and was scheduled to be completed in 2039.

From its inception, Neom has faced criticism for displacing indigenous people and skepticism about its viability. Now, as the project is behind schedule and not attracting the investment the Crown Prince had hoped for, the plans are being scaled back.

Instead of the car-free, carbon-free utopia that was initially promised, The Line has now been reduced by 98.6 percent to only 2.4 kilometers long. It appears that what remains of the project focuses on high-end tourism. Equinox Hotels has partnered to create a resort stretching over a lagoon like a bridge, and other hospitality brands like Marriott and Ritz-Carlton have also signed on to create resorts.

Neom might still secure the funding it needs to grow into its original design, but the prospects are not looking great. The Saudi Arabian government has been running a budget deficit since 2022. Concerns about the country's financial viability, the dropping price of oil, and potential backlash from the international community have kept many financiers from backing the project. In the end, Neom might end up, like many other smart city proposals, less of a revolutionary smart city and more of a novel destination for the world’s elite.

PRESENTED BY PARTNER ENGINEERING AND SCIENCE, INC.

Insurance Crisis Compels Owners to Future-Proof Properties

Property owners and investors are facing an insurance crisis. The increase in insurable losses due to natural disasters and severe weather events has led to an exponential increase in insurance premiums and policy cancellations. Simultaneously, rising construction costs have resulted in higher replacement costs. To address this crisis, property owners and investors must quantify and minimize their risk exposure in order to give the best underwriting presentation.

In this free webinar, Partner Energy President Tony Liou and Technical Director Jessica Wright will dive into strategies for climate-proofing your properties to minimize physical and transition risks. They will also provide details of the Construction, Occupancy, Protection, Exposure (COPE) Assessment, which could help with the insurability of your assets and reduce insurance premiums..

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Propmodo Technology is edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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