Description
"Generally, no one in the West wanted anything to do with the Saudis at this time, and investors pulled out in large numbers," Andreas Krieg, a Gulf specialist at the Institute of Middle Eastern Studies at King's College London, said.Krieg said Saudi Arabia's public spending bill was "extremely high," raising questions about wasteful spending on megaprojects. "Vision 2030 consumes a lot of money, and there's a lot of inefficiencies, especially when it comes to Western consultancy firms."
As the Saudi government nervously eyes the ever-growing bill, Neom needs to generate enough excitement to attract foreign funds.
Despite the fresh scrutiny over human rights abuses, Krieg says that Saudi is now more palatable than ever on the international stage, and the outlook for the kingdom is positive.
Krieg said Neom's very premise was built on levels of foreign investment that now seem unlikely to ever materialize. Meanwhile, competition from Saudi's regional rivals such as Dubai and Abu Dhabi is heating up.
"There's been some Chinese investments, but they are nowhere near where they need to be," he said. "There's always going to be a shortfall of foreign investment in Saudi to pay for all of these projects."
| Period | 8 Jun 2024 |
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| Held at | Business Insider, United States |