Have Some of Saudi Arabia’s Megaprojects Turned Into a…
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Have Some of Saudi Arabia’s Megaprojects Turned Into a Waste of Billions?
Whenever I look at Saudi Arabia’s megaprojects, I don’t think delays are the main problem. Delays happen everywhere. The bigger issue is the amount of money being spent before projects are scaled back, delayed, or put under review, as if changing plans on this scale comes at no real cost.
Look at **The Line**, whose targets have changed significantly from what was originally presented. **The Mukaab and New Murabba** have faced reviews over financing and feasibility, **Trojena** has seen changes to its plans and timeline, and **Oxagon** is still far from the huge vision that was initially presented. Even before these projects, **King Abdullah Economic City** never reached the scale many expected, while **Jeddah Tower** sat unfinished for years before construction resumed.
I’m not saying all of these projects have failed or that every riyal spent on them was wasted. Some of them could still succeed. But large amounts of money have already gone into designs, consultants, contracts, and site preparation for projects whose size or timelines were later changed. That is where the waste becomes a legitimate concern, because some of those costs cannot simply be recovered when the plan changes.
And the loss isn’t only about the money already spent. There’s also the opportunity cost. Some of those billions could have gone into industry, technology, education, local businesses, or investments with clearer returns. You’re not only paying for a project that struggles; you’re also giving up whatever else that money could have produced.
Saudi Arabia obviously has the financial capacity to take big risks, but being able to afford something doesn’t automatically make it a good investment. In the end, the real test isn’t how impressive these projects look or how big they are. It’s whether, ten years from now, they can generate sustainable returns on their own or whether they’ll still depend on continuous government spending to survive.
#current_events
Whenever I look at Saudi Arabia’s megaprojects, I don’t think delays are the main problem. Delays happen everywhere. The bigger issue is the amount of money being spent before projects are scaled back, delayed, or put under review, as if changing plans on this scale comes at no real cost.
Look at **The Line**, whose targets have changed significantly from what was originally presented. **The Mukaab and New Murabba** have faced reviews over financing and feasibility, **Trojena** has seen changes to its plans and timeline, and **Oxagon** is still far from the huge vision that was initially presented. Even before these projects, **King Abdullah Economic City** never reached the scale many expected, while **Jeddah Tower** sat unfinished for years before construction resumed.
I’m not saying all of these projects have failed or that every riyal spent on them was wasted. Some of them could still succeed. But large amounts of money have already gone into designs, consultants, contracts, and site preparation for projects whose size or timelines were later changed. That is where the waste becomes a legitimate concern, because some of those costs cannot simply be recovered when the plan changes.
And the loss isn’t only about the money already spent. There’s also the opportunity cost. Some of those billions could have gone into industry, technology, education, local businesses, or investments with clearer returns. You’re not only paying for a project that struggles; you’re also giving up whatever else that money could have produced.
Saudi Arabia obviously has the financial capacity to take big risks, but being able to afford something doesn’t automatically make it a good investment. In the end, the real test isn’t how impressive these projects look or how big they are. It’s whether, ten years from now, they can generate sustainable returns on their own or whether they’ll still depend on continuous government spending to survive.
#current_events
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