Saudi Arabia’s ambitious megacity project, Neom, is driving an unprecedented demand for materials, with a staggering 20 per cent of the world’s steel output being allocated to its construction. This colossal consumption highlights the scale and ambition of Neom, which aims to redefine urban living and become a global leader in sustainable development.

01 November 2024

Saudi Arabia’s ambitious Neom project is gearing up for the next critical phase of construction as it ramps up production of key materials and accelerates its transformative development. As the $500-billion giga-project moves forward, Neom is setting up a dedicated multi-plant concrete factory on site and, according to Chief Investment Officer Manar Al Moneef, is using 20 per cent of the world’s steel output, highlighting the project’s unprecedented scale.

In remarks at the Global Logistics Forum last month in Riyadh quoted by Arabian Gulf Business Insight, Al Moneef emphasised the enormity of Neom’s footprint in global construction and logistics, stating that the futuristic city will remain the largest customer of building materials for the foreseeable future.

She stressed that Neom would be one of the world’s leading drivers of the global logistics sector in the coming years.  “Neom is going to be the largest customer over the next decade. If you look at our demand in logistics, it’s five per cent of the global logistics market,” she told the forum.

Neom’s demand for steel means “we are 20 per cent of the global steel market. If you look at our demand in elevators, cement and so on … put simply, Neom is going to be the largest customer over the next few decades,” Al Moneef was quoted as saying by the business news platform.

Dr Andrzej Kotas, a steel industry consultant with over 20 years’ experience and Chief Executive of steel industry news outlet Steel On The Net, told Newsweek that this is an unprecedented “colossal amount” of steel for one construction project.

“I can’t think of any projects that come anywhere near that,” he said. “You sometimes have some very large transnational oil and gas pipelines, but nothing comes near to 20 per cent of the world’s consumption.”

The planners at Neom had already envisaged the logistical challenges that the project’s requirements would throw up when  they announced the setting up of a $10-billion exclusive logistics joint venture with DSV in October last year to support the development of the ambitious projects taking shape in Neom. The logistics company will provide a full suite of ground, sea and air logistics services in the coming years.

In preparation for the next phase of construction, Neom last month announced the establishment of a multi-plant concrete facility in partnership with Saudi construction and engineering firm Asas Al Mohileb. This SR700 million ($186 million) readymix facility, designed to produce 20,000 cu m of green concrete daily, will be crucial to the continued development of The Line, the 170-km linear city (500-m high and 200-m wide) which is the centrepiece of Neom. The concrete production will be powered by cutting-edge carbon capture and energy-efficient technologies, further aligning with Neom’s sustainability goals.

As an advanced concrete production facility, the factory’s plants will incorporate carbon capture and utilisation (CCU) technology and energy-saving solutions, with the majority of its output servicing the construction of The Line.

With concrete being a core material for The Line’s substructure and superstructure, the new factory has mobilised a fleet of support vehicles in readiness for operations to commence this month. Peak operations are anticipated to start in 2025, and the facility is expected to generate over 500 local jobs.

The establishment of the plant comes as construction on The Line progresses steadily. Work on the foundation piles has begun, with nearly 1,000 out of over 30,000 piles placed so far.

As Neom continues to expand its infrastructure, its insatiable appetite for resources is poised to have a profound impact on the global market.

While work continues on The Line, Neom has reported progress on several fronts at the snow-capped mountain destination Trojena, the luxury island destination Sindalah (see Page 28), the advanced industries hub Oxagon, while launching a series of new tourism destinations within its latest region, Magna.

 

Magna

In May this year, Neom unveiled its luxury lifestyle coastal region – Magna – on the stunning Gulf of Aqaba coastline as the latest addition to its evolving regional development in northwest Saudi Arabia.

The zone, which is part of Neom’s regional sustainable tourism portfolio, groups together all the 12 premier destinations on the Gulf of Aqaba that have been announced over the past year or so - namely Leyja, Epicon, Siranna, Utamo, Norlana, Aquellum, Zardun, Xaynor, Elanan, Gidori, Treyam and Jaumur.

The 12 destinations will span 120 km and are poised to set a new global standard in luxury sustainable tourism. According to Neom’s Board, Magna will be developed with a core focus on cutting-edge technology, world-class architecture, and ultra-modern amenities that merge with nature. It is expected to comprise 15 luxury hotels, 1,600 hotel rooms, suites and apartments, and more than 2,500 premium residences across its destinations.

Each destination is unique, with its own distinct offering for residents and guests, yet seamlessly blends to form a unified region, it stated. The development is projected to contribute SR2.6 billion to the kingdom’s GDP by 2030, accommodate 14,500 residents, and welcome more than 300,000 overnight visitors annually.

A snapshot of the 12 destinations:

•  Jaumur: The largest cosmopolitan luxury community set on the coast of Gulf of Aqaba, Jaumur has been masterplanned around an inspiring marina for more than 6,000 residents.  It features 500 marina apartments and nearly 700 luxury villas, boasting waterfront access and private mooring. Two distinctive destination hotels within Jaumur offer 350 luxurious rooms and suites. The state-of-the-art 300-berth marina features a gravity-defying cantilever rising above the largest of super yachts. 

•  Gidori, an exclusive private golf community set amidst the coastal hills. Its 18-hole championship golf course sweeps inland through low hills and rocky outcrops, challenging golfers at all levels. It will house 190 luxury sea-view apartments and 200 individually-designed private villas and homes, alongside a range of dining experiences, signature retail stores and garden spaces. 

•  Treyam, a premier resort positioned where the spectacular desert landscape meets the sea. Located across the opening of one of the most beautiful, azure lagoons at the southern end of the Gulf of Aqaba, Treyam’s striking bridge-like architecture connects the northern and southern shores, hosting a 250-room luxury resort.

•  Elanan, an exclusive guest retreat which sensitively emerges from within its lush oasis surroundings, fed by ancient natural springs.

•  Xaynor, a beachfront private members club, nestled among the rocky landscapes that seamlessly merges indoor and outdoor spaces along the coastline.

•  Aquellum lifestyle community, a luxury and experiential space embedded within the mountains which will boast avant-garde architecture and forward-thinking concepts. The project is hidden within a 450-m-high mountain range and features a signature space, dubbed ‘The Generator’, which houses unique research labs for disruptors, innovators, and creative thinkers.

•  Zardun, a restorative nature and wildlife retreat, which overlooks the crystalline waters of the Gulf of Aqaba. Covering 4 sq km, it will host four ultra-luxury signature buildings which will merge harmoniously with the surrounding landscape.

•  Norlana, an ultra-modern active lifestyle community for 3,000 residents that will feature 711 residential properties, including deluxe mansions, spacious apartments and beach villas integrated with the surrounding dunes.   It will include a spectacular 18-hole golf course, and an equestrian and polo centre with world-class facilities nearby. 

•  Utamo, an immersive destination for art and entertainment cocooned in a mountain located along the coastline.  Its multipurpose performance space, VIP lounges and signature restaurants will make it one of the world’s most exclusive event spaces to host performances by world-leading artists.

•  Siranna, exclusive tourism escape. This ultra-luxurious destination will be home to a 65-key hotel, as well as 35 exclusive residences. Emerging from the rugged coastal terrain, the hexagonal pillar-shaped resort is distinctive, yet complementary to the surrounding mountains and flora.

•  Epicon, a luxury coastal tourism destination on the Gulf of Aqaba. It will boast two striking towers – 225 m and 275 m tall – which will be home to an ultra-premium 41-key hotel and luxury residences. Just a stone’s throw away from the hotel is the 120-key Epicon resort, which will boast 45 stunning residential beach villas.

•  Leyja, which extends from the coast and winds inland to form a magnificent natural valley carved between 400-m-high mountains.

Several leading hotel chains have confirmed interest in operating hospitality facilities within Magna. Among the latest to make its debut at the destination is Hyatt, which has announced that will open two Hyatt-branded hotels in Jaumur: Park Hyatt Jaumur and Andaz Jaumur Marina.

Meanwhile, leading hospitality group Capella Hotels and Resorts will set its first coastal destination in Saudi Arabia, set within Elanan. Capella said the 80-room resort will open an exclusive wellness retreat as part of the sustainable development.

Among other hotel chains, Equinox Hotels will set up a resort at Treyam. Nestled amidst exquisite landscapes and crystal-clear waters, Equinox Resort Treyam is an architectural marvel, spanning a 450-m-long bridge-like structure, floating 40 m above a serene lagoon.

 

Trojena         

Work is well under way to create the Lake – which will be the largest architecturally-crafted body of water in Saudi Arabia – and the surrounding entertainment space at Trojena, the year-round mountain destination which is expected to host the 2029 Asian Winter Games.

A central feature of Trojena’s Lava-designed masterplan, the lake will cover an area of 1.5 sq km and will have an island reserved for botanical dives and walks.

Webuild (previously Salini Impregilo), a leading global player in the construction of large and complex projects, is working on a $4.7-billion contract from Neom that involves the construction of three dams to create the 2.8-km-long freshwater lake.

It will also develop ‘The Bow’ – an architectural marvel featuring a hotel overhanging the mountain’s valley below Trojena and the region.

The main dam will be made of roller-compacted concrete (RCC) and will be 145 m high, 475 m long and capable of holding a volume of 2.7 million cu m. The second dam will also be in RCC, while the third will be in rock, with a volume of 4.3 million cu m.

Sitting at the heart of the development, the freshwater lake will be key to Trojena’s ambition to sustain and regenerate the area’s vibrant natural environment, offer clean, serene outdoor mountain living and become a global hub for water sports and entertainment.

Among the most prestigious hospitality brands that have announced plans to launch a resort at the destination is Raffles Hotels & Resorts, a leading luxury brand of Accor.  Slated to open in 2027, Raffles Trojena features a striking ring-shaped design, offering stunning scenic views of the surrounding destination.

Positioned at 2,300m among the majestic mountains in Trojena, the resort will have 105 guestrooms, which are arranged around the perimeter of the ring, offering guests the highest level of comfort in addition to unobstructed vistas and privacy.

Other prominent brands that have already luxury properties in Trojena include, Minor Hotels, which will open a 270-key resort under its Anantara brand, Marriott International which intends to open two luxury properties; and General Hotel Management (GHM), which will manage the Chedi Trojena.

 

Oxagon

Oxagon, the industrial hub will host some of the world-leading utilities and industrial infrastructure including the world’s largest green hydrogen project by Neom Green Hydrogen Company (NGHC), work on which is well under way. 

Construction work is also in progress on the Port of Neom, where Hassan Allam Holding’s subsidiary, Hassan Allam Construction Saudi, in partnership with El Seif Engineering Contracting and China Harbour Engineering Arabia, has been awarded a major engineering, procurement and construction (EPC) contract.

The calls for the development of the port’s Container Terminal 1 and the Marine Services Area (MSA), involving the design and construction of all MSA and T1 buildings, as well as the infrastructure and entrance zone to the new terminal, which is set to open in 2025.

A consortium of Saudi Archirodon, a leading construction group with expertise in the marine and infrastructure fields, and leading Belgian offshore energy and dredging contractor DEME are working on the second phase of the Port of Neom,

According to DEME, the project work involves setting up the basin that will enable the world’s largest ships to call at Port of Neom. All materials recovered as part of the channel development will be used to support the wider development of Oxagon.

Meanwhile, L&T’s PT&D business is currently developing the power and grid components for the world’s largest green hydrogen plant, being constructed by the NGHC, a joint venture between Acwa Power, Air Products, and Neom. The plant aims to produce green hydrogen on a large scale for global export in the form of green ammonia, at a total investment of $8.4 billion.

NGHC, which is expected to be fully operational in 2026, will integrate 4 GW of solar and wind energy to produce up to 600 tonnes of carbon-free hydrogen daily. 

NGHC has recently embarked on a significant recruitment drive for its construction and operations phases. This initiative aims to build a strong, talented team across various functions, including Corporate, EHSS, Risk, Operations & Maintenance, Finance, IT & Cyber Security, as the construction of the green hydrogen plant continues to progress on schedule, the company said.

Work is also in progress at Oxagon’s research and innovation (R&I) campus, designed by the renowned architect Grimshaw and engineered by international consultancy firm Buro Happold.

Situated at the heart of the research and innovation district, the campus will span over 200,000 sq m and will be equipped with state-of-the-art labs, prototyping areas, co-working and office spaces, and digitally enabled facilities.

In terms of accommodation, Kerten Hospitality, an Ireland-based mixed-use, ESG and lifestyle operator, will operate its House Residence brand within Oxagon. The upscale 200-unit serviced apartments complex, at the heart of Oxagon’s first residential community, is set to open its doors in 2025.  

• Construction colossus
• Piling work progresses on The Line modules
• Sindalah set to showcase marina magic

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