In the 1980s, a government job in Saudi Arabia wasn’t just common—it was expected. Over 70% of Saudi citizens were employed by the state, anchoring an economy built almost entirely on oil.
In the 1980s, a government job in Saudi Arabia wasn’t just common—it was expected. Over 70% of Saudi citizens were employed by the state, anchoring an economy built almost entirely on oil. Fast forward to today, and the shift is stark: only about 24% of Saudis now work in the public sector, with the private economy expanding at a record pace. More than 70% of the country’s population is under the age of 30, growing up in a world where oil dominance no longer guarantees stability—or prosperity.
This realization sparked one of the boldest national transformations in modern history. Under Crown Prince Mohammed bin Salman’s Vision 2030 plan, Saudi Arabia is racing to diversify its economy, reduce its oil dependence, and stake its claim as a global innovation hub. At the heart of that vision is artificial intelligence—viewed not simply as a tool for economic development, but as a foundational pillar for a new national identity.
Nowhere is this ambition more visible than NEOM, the $500 billion mega-project rising in Saudi Arabia’s northwest. NEOM isn’t just a futuristic city; it’s an audacious attempt to reimagine how cities operate, how people live, and how governments manage complexity. Artificial intelligence is designed to run through every layer of NEOM’s operations—from infrastructure to healthcare to energy grids—transforming the city into a living, learning ecosystem. To fuel this vision, Saudi Arabia is investing in massive AI infrastructure, including a $5 billion data center in Oxagon, one of NEOM’s key districts.
However, NEOM’s journey has been far from smooth. Despite high-profile announcements and ambitious timelines, the project has faced significant challenges. Reports indicate that only a fraction of the construction has been completed, with delays and budget overruns becoming increasingly common. The Wall Street Journal’s investigative podcast series, “The Future of Everything,” delved into these issues, highlighting the gap between NEOM’s lofty goals and its current progress.
Moreover, the project’s scale and scope have raised questions about feasibility and sustainability. The envisioned linear city, stretching over 170 kilometers, presents unprecedented engineering and logistical hurdles. Environmental concerns, displacement of local communities, and the sheer cost of construction have added layers of complexity to an already monumental task.
International observers have expressed skepticism about NEOM’s ability to deliver on its promises. While the project’s leadership maintains that NEOM will be a beacon of innovation and a model for future cities, critics argue that the initiative may be more about image than substance. The disparity between the project’s aspirations and its tangible outcomes has led some to view NEOM as a cautionary tale of overambition.
Yet, the broader narrative remains: Saudi Arabia’s investment in AI and futuristic infrastructure signifies a critical pivot from oil dependency to a diversified, knowledge-based economy. Even if NEOM falls short of its grandest visions, the initiative underscores the Kingdom’s recognition of the need for transformation in the face of global economic shifts.
The bigger question Saudi Arabia faces isn’t just whether it can finish building NEOM. It’s whether, decades from now, the world will look at Saudi Arabia and see a nation that successfully reinvented itself as a global AI hub—or remember it as the place where ambition outpaced reality, and a new future was lost in the shadow of old oil fields. NEOM may be a bet on technology, but in the end, it’s a bet on transformation—and history tends to remember who delivers, not just who dreams.
