Latest news with #Neom
India.com
10 hours ago
- Business
- India.com
Bad news for Saudi Prince Mohammed bin Salman's dream project, sources say 1000..., it's 20 percent...
New Delhi: Saudi Arabia's dream project Neom City seems to be in trouble. Semaphore reported in its report on Friday, July 18 that Neom is considering laying off 1,000 employees. This is 20 percent of the total employees working on this project. This shows that the Saudi Arabian government is downsizing its mega project. What is the issue with Neom? Semaphore has reported that Neom is considering layoffs as part of a comprehensive change. Under this, more than 1,000 employees may leave Neom's site on the northwestern Red Sea coast and transfer to Riyadh. The report also said that these plans have not been finalized yet. There may be further changes in them. This report by Semaphore is the latest in a series of articles. This shows that the Saudi Arabian government is curbing its ambitions in the case of Neom. Neom aims to turn Saudi Arabia's Red Sea coast into a 170-km-long city called The Line and an industrial park. What does Neom signify? Neom is made up of a mixture of the Greek word Neos (new) and the Arabic word Mustaqbal (future), here, Neom means 'new future'. It is part of Mohammed bin Salman's Project 2030 (Saudi Vision 2030/ Vision 2030). The city of Neom will be spread over 2,63,000 hectares. Through this, Mohammed bin Salman aims to reduce the dependence of the Saudi economy on oil. Why is the project under scrutiny? Before Semaphore, Bloomberg has recently reported in one of its reports that Saudi Arabia has asked several consulting firms to review the feasibility of 'The Line'. The Financial Times claimed earlier this year that Saudi Arabia has launched a comprehensive review of Neom because of the many questions surrounding it. The viability of Neom has long been a subject of debate. There are doubts, especially among investors who feel Saudi Arabia is unlikely to attract people to live in this futuristic remote city. Neom is currently being funded by Saudi Arabia's $1 trillion Public Investment Fund (PIF). However, the project has faced setbacks due to limited interest from foreign investors.
Middle East Eye
2 days ago
- Business
- Middle East Eye
Saudi Arabia's Neom weighs deep layoffs and relocations: Report
Neom is considering laying off up to 1,000 employees - an estimated 20 percent of its full-time staff - in another sign that Saudi Arabia is scaling back its premier giga-project, Semafor reported on Friday. The website reported that Neom was weighing the layoffs as part of a broader overhaul that could also see more than 1,000 employees leave Neom's construction site on the kingdom's northwestern Red Sea coast, and relocate to Riyadh. The plans are not finalised and could change, Semafor said. The report is the latest in a string of articles that indicate Saudi Arabia is curbing its ambitions when it comes to Neom, the gigaproject designed to remake Saudi Arabia's Red Sea coast with luxury beach hotels, a ski resort, a 170km-long, futuristic city called "The Line", and an industrial park. Bloomberg reported earlier this week that Saudi Arabia asked consulting firms to review the feasibility of "The Line'. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Meanwhile, The Financial Times reported earlier this year that the kingdom had launched a "comprehensive review" of Neom. The practicality of Neom has long been a source of debate, including among investors who doubt whether the kingdom can attract people to live in the futuristic, remote city. Saudi Arabia's $ 1 trillion Public Investment Fund, known as PIF, is funding Neom's construction. The project has faced setbacks due to lower energy prices and limited interest from foreign investors. Neom is the most ambitious part of Crown Prince Mohammed bin Salman's efforts to reduce the kingdom's dependency on oil revenue and diversify its economy. He has been more successful pushing through liberalising social reforms, investing PIF money in startups and expanding Riyadh. At the same time, he has cracked down on dissent. Why Saudi Arabia can spend more money than it makes, even as oil prices drop Read More » For now, the kingdom is still reliant on oil revenue to fund its ambitious projects. Oil accounts for roughly 61 percent of Saudi Arabia's revenue, according to its 2025 budget. Brent crude, the international benchmark, has been trading below $70 per barrel for most of this year, well below the $100 per barrel level that economists say Saudi Arabia needs to balance its budget. Neom has also been plagued by internal challenges. Nadhmi al-Nasr, who managed Neom's construction from 2018 to 2024, departed from his post in November. He earned a chilling reputation, reportedly bragging that he put everyone to work 'like a slave' and 'When they drop down dead, I celebrate. That's how I do my projects.' Nasr said last year that Neom had 5,000 full-time staff and 140,000 contractors. Semafor reported that Neom is considering ending Nasr's policy that Neom staff be based at the desolate construction site. The employees who move to Riyadh will lose current benefits that include housing and meals paid for by Neom. Workers - mainly western expats - who vlogged their lives at the camp showed ultra-modern but bland housing complexes in barren landscapes.
Yahoo
2 days ago
- Business
- Yahoo
Saudi Arabia to Review 'The Line' Futuristic Project
Saudi Arabia has asked consulting firms to conduct a strategic review of its plans for building Neom's development project - The Line. It comes as the kingdom seeks to recalibrate projects under its Vision 2030 plan. Abeer Abu Omar explains to Joumanna Bercetche on Horizons Middle East and Africa.
The National
4 days ago
- Business
- The National
Saudi Arabia's property market offers promise of reliable returns for global investors
Global investors are now sizing up the profit returns from Saudi Arabia's real estate market, as the kingdom's once closed-off sector will soon be accessible. Interest has peaked, especially as opportunities to buy into megaprojects such as Neom's The Line, Oxagon and Diriyah are expected. On July 8, the Saudi cabinet approved the Law of Real Estate Ownership and Investment by Non-Saudis, replacing a framework from 2000 and formally opening designated zones across the kingdom, including Riyadh and Jeddah, to foreign ownership from January 2026. This sweeping reform aligns with the kingdom's Vision 2030 target to diversify the economy, boost foreign direct investment and expand real estate supply, while protecting sovereign interests through controlled zone designations. Foreign investors are probably asking what type of return on investment they could receive given the kingdom's activity, and the potential is promising. How ready is the market? Following publication in the official gazette, the Real Estate General Authority must publish implementing regulations on the Istitlaa platform within 180 days. It has time to define zones open to foreign buyers and prescribe approval processes. The Ministry of Investment will streamline foreign investment approvals and the Ministry of Interior will integrate land-registry data with security protocols. Together, these institutions must co-ordinate licensing, title registration and compliance checks to launch transactional platforms by the start of 2026. Saudi Arabia's government has demonstrated capacity for rapid digital roll-outs, exemplified by e-government portals and integrated identity systems, suggesting core registry upgrades can be delivered on schedule. Moreover, existing permissions already enabled foreign citizens to invest indirectly – for example, through Premium Residency, licensed developers, or real estate funds – creating precedents for a more structured regime, but the main hurdles could involve: Regulatory consultation, by compressing public comment cycles to meet the 180-day deadline. IT integration, by updating national land registries to handle new ownership categories and cross-border title verification. A financing ecosystem, which would need to be adapted, especially the mortgage frameworks for foreign buyers that will include risk and compliance protocols. With Vision 2030's political backing, a January 2026 activation is credible. Advancing to an April 2026 operational window will depend on top-level prioritisation of the law and dedicated interministerial task forces. Global market comparison This move by Saudi Arabia feels very much like Dubai did back in 2002, when it opened certain areas for foreign ownership. With the reforms of the country also making headlines, now would be a great time for any investor to get in early and benefit from capital appreciation of real estate as the market opens further. All of this will of course take time, as Dubai has shown, the period needed for the real estate market to lead to maturity takes time. Notwithstanding this, I think Saudi Arabia and its investors are in a great position to benefit from this move going forward. Global investors with their eyes on Saudi Arabia must consider local returns against Gulf and global benchmarks. In the fourth quarter of 2024, Saudi Arabia's real estate price index rose 3.6 per cent year-on-year, led by a 10.2 per cent price surge in Riyadh and 4.6 per cent in Najran. Meanwhile, rental markets remain strong. Riyadh yields average 8.89 per cent and Jeddah 7.89 per cent gross annually. If we were to compare Saudi Arabia with the UAE, the US and the UK, Dubai delivers rental yields between 5 per cent and 11 per cent, buoyed by robust demand in mixed-use and luxury segments and the golden visa programme. The US's average gross rental yield is 6.68 per cent as of the second quarter of 2025, with high-yield cities such as Detroit exceeding 20 per cent. The UK average buy-to-let gross yield stands at 5.60 per cent, with cities including Sunderland and Aberdeen offering yields above 8 per cent. Saudi Arabia's combination of double-digit yields and mid-single-digit price appreciation positions it competitively within the Gulf and many western markets. More needed Real estate market maturity marked by liquidity, transparency and global investor confidence will take time as has been shown in the UAE, but as long as Saudi Arabia build the below, it should be well on its way to maturity in the years to come. Secondary market depth will be needed by launching real estate investment trusts and collective investment schemes to deepen capital pools and improve liquidity. Valuation standards will need to be upgraded by establishing independent appraisal bodies and aligning with IFRS 13 for fair-value reporting. Legal and dispute resolution will also require upgrading, by expanding specialised real estate courts and arbitration centres to protect investor rights. Financing and securitisation will need to be more competitive by developing covered-bond and mortgage-securitisation markets to diversify funding and lower borrowing costs. These enhancements, while not prerequisites for the January 2026 opening, will be essential for evolving from a frontier to a mature market akin to the UK and US over several years. The opening of Saudi Arabia's real estate market is one of the most consequential investment gateways in the region since the UAE did the same more than 20 years ago. Regulatory foundations appear on track for January 2026, with an April 2026 operational window possible, if expedited. Early market metrics, robust price growth and high rental yields will underscore strong growth potential. But full maturation will depend on continued reforms in liquidity, transparency and financing infrastructure. For global investors, Saudi Arabia offers frontier-market yields with the promise of a reliable long-term destination as institutional frameworks deepen under the Vision 2030 initiative.
Qatar Tribune
4 days ago
- Sport
- Qatar Tribune
Leverkusen's Xhaka on flight to Brazil despite reports of transfer
dpa Dusseldorf Bundesliga runners-up Bayer Leverkusen flew Granit Xhaka to their training camp in Rio de Janeiro on Monday, despite multiple reports the midfielder is poised to leave the club. Xhaka was part of the squad flown to Rio de Janeiro for a 10-day training camp, the club announced. Multiple German reports have linked Xhaka to a move to Saudi Pro League club Neom SC. Sky TV said late on Sunday that the 32-year-old Swiss international has 'an verbal agreement in principle' with Neom SC. Germany's Bild paper and Kicker sports magazine also reported the Neom interest. Sky said that Neom have informed Leverkusen of their intentions, with a transfer fee estimated at ?6 million ($7 million) for Xhaka, who is under contract at Leverkusen until 2028.
