No takers for USD 100 billion city in Saudi Arabia despite…, major reasons include…, bad news for Crown Prince Mohammed bin Salman

Crown Prince Mohammed bin Salman's dream project.

Riyadh: The Saudi Arabian government’s highly ambitious project, the King Abdullah Economic Mega City (KAEC), is struggling to make its mark despite billions of dollars in investment.

It has lagged compared to newer and lucrative projects such as The Line and Oxagon. The promises made about this project have not been fulfilled. In such a situation, the question arises whether the KAEC project has failed to fulfil its objective. It is also a setback to Saudi Crown Prince Mohammed bin Salman’s Vision 2030.

According to the report of Interesting Engineering, the KAEC, spread over 180 square km on the coast of the Red Sea, 100 km north of the Saudi city of Jeddah, has not yet reached its full potential. The $100 billion city was supposed to house two million people and create one million jobs, but by 2024 there were only 10,000 people. The city has also failed in terms of providing jobs and so far only a few companies have come here.

MBS working on Vision 2030

Crown Prince Mohammed bin Salman (MBS) is currently working on transforming Saudi Arabia from an oil-dependent economy to a global investment centre under Vision 2030. In this, new projects like KAEC are important in urban development.

Launched in 2005, KAEC is strategically placed as a major logistics hub connecting Europe, Asia and Africa. Its big feature is King Abdullah Port, which opened in 2019. It is the first privately owned port in West Asia.

Saudi’s KAEC is facing challenges in attracting people despite big promises. By 2024, only 10,000 people live there, far below its target of 2 million inhabitants. The goal of creating 1 million jobs is also unfulfilled, with only 100 Saudi and multinational companies in KAEC. This low number of residential and employment data raises concerns about the city’s viability and future. This shows that KAEC faces other stiff competition under Saudi Arabia’s Vision 2030.

Challenges from other projects

The KAEC project is also facing significant challenges from other ambitious projects such as The Line, Oxagon and Trojena. These projects are attracting more of the young population wanting financial investment and sustainable living. However, despite these challenges, KAEC’s proximity to Jeddah and facilities such as the port are expected to continue to grow the city in the coming years.