The one Neom project that’s actually happening: an absurdly gigantic palace

Neom, a massive urban development project in Saudi Arabia, is facing significant delays and cost overruns, leading to project cancellations and a scaling back of its original vision. A recent internal audit has revealed evidence of deliberate financial manipulation by management to justify rising cost estimates to investors. The project, which aims to transition Saudi Arabia's economy from oil to technology and tourism, includes a 110-mile-long "vertical city" and other futuristic settlements. However, the development is struggling to attract the necessary $500 billion in public and private capital. New satellite images have revealed a massive palace complex, believed to be owned by Saudi Arabian ruler Mohammed bin Salman, featuring 16 buildings, four swimming pools, and a golf course. The palace is one of five planned for the royal family in the Neom region. Bin Salman chairs the boards of Neom and its sub-projects, approving architectural choices that seem impossible to build. The project's financial reality is starkly contrasted with its lavish personal palaces and flashy renderings. The internal audit found that capital expenditure for building Neom to its "end-state" by 2080 was estimated at $8.8 trillion, more than 25 times the annual Saudi budget. The audit also revealed that executives hid rising costs by inflating profit assumptions, and the crown prince encouraged the use of the internal rate of return to assess project profitability. Despite the audit findings, a Neom spokeswoman claims the project remains on track and is demonstrating tangible progress. The project's first phase is set to open in 2034, with the first half-mile section of The Line, including a stadium, scheduled to be completed by then.