The ambitious NEOM project in Saudi Arabia is on track to consume 20 percent of the world’s steel supply, as reported by a project spokesperson. Located in northwest Saudi Arabia, NEOM spans an impressive 10,200 square miles and is currently under construction.
Launched in 2017 by Crown Prince Mohammed bin Salman, NEOM is a groundbreaking urban initiative, with its flagship structure, “The Line,” setting the tone for futuristic development. Extending 105 miles, The Line will ultimately house nearly 9 million residents. Alongside The Line, NEOM will also include a winter resort, 12 luxury hotels, an island retreat, and an industrial city.
The construction of NEOM will demand 5 percent of the world’s global logistics market
NEOM’s Chief investment officer, Manar Al Moneef, spoke at the Global Logistics Forum in Riyadh and explained that besides requiring 20 percent of the world’s steel, “Neom is going to be the largest customer in logistics over the next decade. If you look at our demand in logistics it’s 5 percent of the global logistics market.”
She also spoke about the fact that the Saudi Arabian mega-city will require 20 percent of the world’s steel for its construction. Al Moneef said: “We (Neom) are 20 percent of the global steel market. If you look at our demand for elevators, cement, and so on. Put simply, Neom is going to be the largest customer over the next few decades.”
The amount of steel needed to construct NEOM is unprecedented
In an interview with the American news outlet, Newsweek, Dr. Andrezj Kotas, a steel industry consultant said, “This is an unprecedented, colossal amount of steel for one construction,” when asked about the steel requirements of Saudi Arabia’s mega city.
He added, “You sometimes have some very large transnational oil and gas pipelines, but nothing comes near to 20 percent of the world’s consumption.”
Saudi Arabia is not one of the world’s top steel producers, which means the country will need to buy 20 percent of the world’s steel production over the course of the next few decades to complete the construction of NEOM.
The two largest producers of steel in the world are China and India. However, China produces more steel than any other country by a rather large margin. In 2023, China produced 67.4 million metric tons of steel, whereas India only produced 12.1.
Over the last decade, Saudi Arabia has spent $1.3 trillion on building infrastructure, and NEOM is anticipated to go over its previously projected cost of $500 billion.
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