Government | Wednesday 25 October, 2017 6:18 am |

Crown Prince Muhammad Bin Salman, deputy premier, minister of defense and chairman of the Public Investment Fund (PIF), announced on Tuesday a $500 billion plan to create the world’s first independent special zone stretching over three countries.

 

The 26,500 square km (10,230 square mile) special zone, known as NEOM, is located in the northwestern region of Saudi Arabia and is set to include territory from within the Egyptian and Jordanian borders.
 

NEOM will focus on industries including energy and water, biotechnology, food, advanced manufacturing and entertainment, the Crown Prince said. NEOM will be independent of Saudi regulation and will adopt a “separate regulatory framework,” said the announcement on the sidelines of the Future Investment Initiative.
 

Klaus Kleinfeld, the former chairman of Alcoa and Arconic and a member of the Council on Foreign Relations, was appointed NEOM’s first CEO. Kleinfeld has also served as adviser to the Chinese and Russian prime ministers.
 

Adjacent to the Red Sea and the Gulf of Aqaba and near maritime trade routes that use the Suez Canal, the zone will power itself solely with wind power and solar energy.
 

“NEOM is situated on one of the world’s most prominent economic arteries ... Its strategic location will also facilitate the zone’s rapid emergence as a global hub that connects Asia, Europe and Africa, enabling 70 percent of the world’s population to reach it within eight hours,” said the announcement.
 

NEOM’s land mass will extend across the Egyptian and Jordanian borders, rendering NEOM the first private zone to span three countries.
 

Investments and financing will play a vital role in NEOM, set to be spearheaded by the Kingdom’s economy and supported by PIF – a major global fund with access to a worldwide network of investors and major companies — set to be brought onboard to drive the success of NEOM.
 

NEOM is set to attract new foreign direct investment that will contribute to PIF’s long-term growth strategy aimed at strengthening the Saudi Arabian economy.
 

All services and processes in NEOM will be 100% fully automated, with the goal of becoming the most efficient destination in the world, and in turn be implemented on all activities such as legal, government, and investment procedures among others. Additionally, NEOM will be subject to the highest sustainability standards, and will provide all transactions, procedures, and claims through paperless and electronic means.

Repetitive and arduous tasks will be fully automated and handled by robots, which may exceed the population, likely making the NEOM’s GDP per capita the highest in the world.

A new concept for the workforce will be implemented, based on attracting high-caliber human resources with unique competencies for full-time innovation, decision making and business leadership.
 

NEOM is born from the ambition of Saudi Arabia’s Vision 2030 to see the country develop into a pioneering and thriving model of excellence in various and important areas of life.
 

It aims to drive the transformation of the Kingdom into a leading global hub through the introduction of value chains of industry and technology.
 

“NEOM will be constructed from the ground-up, on greenfield sites, allowing it a unique opportunity to be distinguished from all other places that have been developed and constructed over hundreds of years and we will use this opportunity to build a new way of life with excellent economic prospects,” the Crown Prince said.