In 2017, Crown Prince Mohammed bin Salman introduced NEOM, a futuristic city designed to reduce Saudi Arabia’s dependence on oil and diversify its economy. The heart of NEOM lies in “THE LINE,” a 170-kilometer-long linear city intended to house nine million people. This city promises to be a model of sustainability, featuring zero-emissions architecture, green spaces and renewable energy. NEOM’s vision is to establish Saudi Arabia as a global hub for business and innovation. However, despite its groundbreaking design, the project is not without its challenges.

While NEOM focuses on transforming the future of urban living, the CPEC (China-Pakistan Economic Corridor) railway seeks to transform the region’s trade dynamics. This extraordinary project is designed to connect China’s industrial heartland with Pakistan’s Gwadar port, opening a new trade route between Asia and Europe. The CPEC railway promises to reduce transportation costs, boost trade, create jobs and stimulate local economies, all while offering a direct and efficient link between China and the Arabian Sea. The railway’s construction will traverse some of the most challenging terrains in the world, from the mountainous regions of northern Pakistan to the desert landscapes of Balochistan.

Both NEOM and the CPEC railway are significant infrastructure projects that require substantial investment. NEOM’s estimated cost ranges from $500 billion to $2 trillion, making it clear that diverse funding sources will be crucial for its success. While the Saudi government is the primary investor, NEOM will rely heavily on international investments to ensure its success. Similarly, although China largely funds CPEC, private-sector involvement and international partnerships will help spread financial risk. Both projects must prioritize diversifying their funding sources to ensure they are financially sustainable.

Read the full story at Pakistan Observer