Government committee headed by Saudi Crown Prince to review major projects

Bloomberg reported that a government committee headed by Crown Prince Mohammed bin Salman is about to complete a comprehensive review of mega projects, including the "Neom" project.

The agency reported, citing sources, that the review may include reducing the budget allocated to "Neom" by 20% during the current year and reducing projects that were in the planning phase and have not yet been announced.

It explained that Riyadh may benefit from the review because the projects there are a priority.

Saudi Arabia announced last December that the review would lead to delaying some projects and accelerating others and that the goal is not to overheat the economy and that the long-term vision has not changed.

Farouk Soussa, an economist at Goldman Sachs Middle East and North Africa, said: "Adjusting the projects is very comforting to us, because it confirms that they are not betting on anything at any price, but if it is possible, they will do it, otherwise they will not.. They are logical."

Neom is located in the northwest of the Kingdom. The Line project includes, and the plans also include an industrial zone, ports and tourism development.

Most of the project’s funding so far has come in the form of equity injections from its owner, Saudi Arabia’s Public Investment Fund. But to pull off the ambitious project, Neom’s developers have been looking for new forms of cash in recent months. Neom recently secured a 10 billion riyal loan from a group of Saudi banks, according to two other people familiar with the deal. The project’s developers also raised a 3 billion riyal loan to finance a luxury Red Sea resort island, Sindalah.