Saudi Arabia’s megacity project, Neom, is using 20% of the world’s steel, its chief investment officer Manar Al Moneef said.
To put that in context, in 2023, about 1.9 billion metric tons of steel were produced globally, and one-fifth of that would equal nearly 400 million metric tons. India, the world’s second-largest steel producer, produced about 140 million metric tons of steel last year.
According to Arabian Gulf Business Insight, Al Moneef said that Neom’s demand in “elevators, cement, and so on” would make it “the largest customer over the next few decades” not only in the global steel market, but also in the global logistics market.
Launched in 2017 by Saudi Arabia’s Crown Prince Mohammed bin Salman, Neom is the world’s biggest construction project. Part of the Saudi government’s Vision 2030 program, the goal of the project was to diversify the oil-reliant kingdom’s economy. Neom will include a 170-kilometer horizontal city with multitrillion-dollar skyscrapers, a floating industrial complex, and luxury resorts. The estimated cost of the project was $1.5 trillion.
Neom has been surrounded by skepticism since its unveiling. International organizations repeatedly expressed alarms over its human-rights violations and environmental impact. In April, Bloomberg reported that the Saudi government has scaled back its ambitions for the first phase of Neom’s construction, from an initial goal of housing 1.5 million residents to now aiming for fewer than 300,000. The Wall Street Journal has also reported a slew of mismanagement and labor abuse at Neom.
