Saudi Arabia’s Neom becomes one of the largest consumers of global steel
Neom, the ambitious Saudi Arabian mega-project, is currently using
approximately 20% of the world’s steel, an official disclosed on Monday. This
makes the project one of the largest consumers of construction materials
globally.
According to Manar Al Moneef, Neom's Chief Investment Officer, the $500
billion project will continue to drive demand for construction materials for
decades. Speaking at the Global Logistics Forum in Riyadh, she emphasized that
Neom’s logistics needs constitute 5% of the global market, positioning it as a
leading force in the sector.
“Neom will be the largest customer over the next decade. In terms of
logistics demand, it already represents 5% of the global market,” Al Moneef
stated in rare public remarks.
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In its bid to attract private investment, Neom has established a $186
million concrete hub for The Line—a 100-mile linear city expected to have three
miles built by 2030. Neom’s demand for construction essentials such as steel,
cement, and elevators solidifies its position as a significant driver in global
markets.
Located in the northwest of Saudi Arabia, Neom is a centerpiece of the kingdom’s
economic transformation plan, collectively valued at over $1.25 trillion.
However, funding challenges have emerged as Saudi Arabia’s Public Investment
Fund reallocates resources toward Riyadh’s preparations for the 2030 World Expo
and the 2034 World Cup.
In addition to The Line, Neom will feature other developments including the
Trojena winter resort, 12 luxury resorts known as Magna, the Sindalah island
resort, and an industrial city named Oxagon.
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Dhiraj Joshi, a partner at Arthur D Little Middle East, commented on the
project’s timeline: “Projects like Neom and Oxagon are long-term investments.
With the World Expo and World Cup preparations underway, there is no urgency
for completion in the next four to five years. Neom will remain a priority for
Saudi Arabia’s future.”
Source: https://www.agbi.com/
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