Saudi Arabia will 'downscale' some Vision 2030 projects like Neom amid 'challenges,' minister says
Saudi finance minister said the kingdom was pleased with Vision 2030 progress, but would "change course" and "adjust" projects such as Neom as needed.
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- Saudi Arabia's Neom project secured a $2.7 billion credit line from local lenders.
- The Saudi finance minister said the kingdom was "very pleased" with progress on Vision 203 goals.
- He said "challenges" meant adjustments would be made to some aspects as required.
Saudi Arabia is trying to counter reports that its Neom project is struggling.
Finance minister Mohammed Al Jadaan told a World Economic Forum meeting in Riyadh on Sunday that the kingdom was "very pleased" with the progress made in its Vision 2030 plan, of which Neom is the centerpiece.
While he said 87% of the targets in the ambitious plan were on track, "challenges" meant adjustments would be made to some aspects as required.
"We don't have ego, we will change course, we will adjust, we will extend some of the projects, we will downscale some of the projects, we will accelerate other projects," the minister said during a session on global economic growth.
His comments came as Neom announced a new revolving credit facility worth 10 billion riyals ($2.7 billion) — from local lenders.
Officials said in a press release that the credit line will support Neom's short-term financing requirements, including the development of Trojena, The Line, and the luxury island destination Sindalah.
Neom's CEO, Nadhmi Al-Nasr, said: "This new credit facility, backed by Saudi Arabia's leading financial institutions, is a natural fit within our wider strategy for funding. We continue to explore a variety of funding sources as we deliver transformational infrastructure assets while supporting the wider Vision 2030 program."
Neom did not immediately respond to a request for comment from Business Insider.
Recent reports have indicated that Saudi Arabia may be struggling to realize some of the ambitious projects included in Saudi Crown Prince Mohammed bin Salman's Vision 2030 plan.
Earlier this month, Bloomberg reported that Saudi Arabia had reduced estimates for the number of people expected to live in The Line. That decision had led to at least one contractor starting to lay off workers employed on the site, according to the report.
The Wall Street Journal reported in February that Saudi had also started borrowing to help fund Neom and other Vision 2030 megaprojects.