Saudi Arabia’s Silicon Valley Masterplan Unveiled

Saudi Arabia has unveiled a transformative master plan for NEOM, a $500 billion smart city project poised to become the Middle East’s equivalent of Silicon Valley. Located in the kingdom’s northwest along the Red Sea coast, NEOM is a cornerstone of Vision 2030, Saudi Arabia’s ambitious strategy to diversify its economy and establish itself as a global hub for technology, innovation, and sustainable urban living.

A Vision for the Future

The master plan for NEOM outlines a futuristic metropolis spanning 26,500 square kilometres, designed to integrate cutting-edge technology with environmental sustainability. At its core is THE LINE, a 170-kilometre-long linear city that redefines urban development. Towering 500 meters high but only 200 meters wide, THE LINE will house up to 9 million people in a car-free, zero-carbon environment powered entirely by renewable energy. The design preserves 95% of the surrounding land for nature, prioritising human well-being over traditional infrastructure.

Other key regions include Oxagon, an industrial hub focused on advanced manufacturing and global trade; Trojena, a mountain resort offering year-round outdoor activities; and Sindalah, a luxury island destination. These regions aim to attract global talent, foster innovation, and create an estimated 460,000 jobs while contributing $48 billion to Saudi Arabia’s GDP by 2030.

Construction Milestones in 2025

Construction on NEOM is advancing rapidly, with significant progress reported in 2025. For THE LINE, excavation and piling work for Module 46 are nearing completion, laying the foundation for this groundbreaking vertical city. Giles Pendleton, NEOM’s chief operating officer, noted in January 2025, “There’s a lot of momentum. If you go there now, there’s stuff coming out of the ground everywhere.” The Port of NEOM is also taking shape, with a $2 billion investment fuelling the development of an advanced container terminal set to open later this year. This terminal will enhance the existing operational port, supporting global trade and logistics.

Sindalah, NEOM’s luxury island, has already been completed and is preparing to welcome visitors, marking a significant milestone. Other projects, such as Oxagon’s green hydrogen plant and Trojena’s ski resort, are also underway, with investments of $6.1 billion and $5.6 billion, respectively, for residential communities to house 95,000 people. These developments highlight NEOM’s commitment to creating a diverse, sustainable urban ecosystem.

Driving Technological Innovation

NEOM’s master plan positions it as a global leader in technology and innovation, often likened to Silicon Valley. The kingdom has committed $40 billion to AI development, partnering with global tech giants to build a robust AI infrastructure. Initiatives like Humane, a sovereign AI project, aim to ensure data sovereignty and align with national priorities. Over 80 tokenization licenses issued by the Saudi Capital Market Authority since 2021 reflect the kingdom’s push for AI and Web3 startups, creating an “execution-first” environment for innovation.

The master plan also integrates advanced technologies into urban design. THE LINE will use modular construction and smart logistics to enhance efficiency, while automation and robotics will streamline services. These efforts aim to attract global tech talent and reduce Saudi Arabia’s reliance on oil by fostering a knowledge-driven economy.

Economic and Social Impact

NEOM is more than a construction project; it’s an “economy-building exercise,” as stated by Rayan Fayez, NEOM’s deputy CEO, at the 2025 World Economic Forum in Davos. With over $50 billion already invested, the project is creating thousands of jobs and driving economic diversification. The master plan includes plans for universities, research centers, and a metaverse academy, positioning NEOM as a hub for education and innovation.

However, the project faces challenges. Reports of cost overruns, with estimates suggesting a total cost of $8.8 trillion, have raised concerns about financial sustainability. An internal audit in March 2025 highlighted “unrealistically rosy assumptions” by some executives, prompting skepticism about the project’s feasibility. Despite these concerns, Saudi officials, including Economic Minister Faisal F., have denied claims of scaling back, emphasizing continued commitment to the original vision.

Environmental and Ethical Considerations

NEOM’s master plan emphasises sustainability, with renewable energy and land preservation at its core. However, environmental concerns have emerged, including potential shifts in rainfall patterns and intensified sandstorms due to extensive construction. A July 2025 report highlighted these risks, urging careful monitoring to mitigate impacts.

The project has also faced criticism for its social impact. The forced relocation of local tribes, such as the Huwaitat, and reports of human rights concerns have sparked controversy. These issues underscore the need for NEOM to balance its ambitious goals with ethical and inclusive development practices.

A Global Model for Urban Development

Despite challenges, NEOM’s master plan represents a bold step toward redefining urban living. By blending technology, sustainability, and innovation, Saudi Arabia aims to create a city that rivals global tech hubs while setting new standards for eco-friendly urban design. The project’s success will depend on overcoming financial, environmental, and social hurdles, but its progress in 2025 demonstrates a commitment to turning this vision into reality.

As NEOM continues to take shape, it stands as a testament to Saudi Arabia’s ambition to lead the global tech and innovation landscape. With ongoing construction and global partnerships, the kingdom is laying the foundation for a new era of urban development, one that could inspire cities worldwide.

Key Construction Projects in NEOM