Neom and AlUla: A tale of two cities

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(Saudi Tourism)
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Emirati artist Mohammed Ahmed Ibrahim’s installation called ‘Falling Stones Garden’ on display at the first edition of Desert X AlUla exhibition. (Supplied)
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The Lyihyan Bin Kuza (AlFarid) tomb carved into rose-coloured sandstone can be seen in Hegra (Madain Saleh), a UNESCO World Heritage site, near Saudi Arabia’s town of AlUla. (File/AFP)
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Updated 21 June 2020
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Neom and AlUla: A tale of two cities

  • How Vision 2030 is reviving the past while building the future

LONDON: Separated by 300 km and 4,000 years of history, Saudi Arabia’s oldest and newest cities may seem to have little in common beyond the mutual heritage of the land they share.

In fact, the story of the ancient settlement of Hegra in AlUla and the vast embryonic megacity of Neom is an inspiring tale of two cities that encapsulates the ambition of Saudi Arabia’s Vision 2030, the “bold yet achievable blueprint for an ambitious nation” conceived by Crown Prince Mohammed bin Salman.

Hewn from the rocks of the Hijaz in the Kingdom’s northwest two millennia ago by the Nabateans, the mysterious forebears of today’s Saudis, Hegra was the nerve center of a commercial empire that dominated trade throughout the ancient Middle East.

Neom, launched by the crown prince in 2017, is destined to transform over 26,500 sq. km in Saudi Arabia’s northwestern Tabuk region, including 468 km of Red Sea waterfront. More than 30 times the size of New York City, it is, as the government has declared, nothing less than “the world’s most ambitious project.”

Both cities are centerpieces of the crown prince’s determination to grow and diversify the nation’s economy away from reliance on fossil fuels, and living examples of how the great strategic plan is focused not only on building the nation’s future, but also on safeguarding its past.

Nowhere in the Kingdom is that past more dramatically represented than at Hegra, an archaeological wonderland that in 2008 became the first site in Saudi Arabia to be inscribed on UNESCO’s World Heritage List.

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Hegra is surrounded by spectacular monumental tombs, carved from the rocks over 2,000 years ago. Many are decorated with carved images of monsters, animals, human faces and Nabatean inscriptions, offering a unique insight into the lives of the people who lived there.

Once at the heart of a dynamic kingdom that attracted traders, travelers and invaders from the four corners of the Middle East and beyond, today the ancient city is the centerpiece of the 22,000 sq. km AlUla region, an area roughly the size of Belgium.

Home to more than 23,000 sites of archaeological interest, and the focus of fast-moving plans to transform its dramatic landscape and heritage into one of the world’s great cultural tourism destinations, AlUla is a cornerstone of Vision 2030.

The Royal Commission for AlUla (RCU) is working to transform an area that throughout history has served as a meeting place for caravans, merchants and pilgrims into a major global destination, a “living, open museum” complete with museums, archaeological sites, luxury hotels and entertainment offerings.

“People from across the world will be touched by the transcendental beauty of AlUla,” RCU CEO Amr Al-Madani said last year. “It is truly a humbling destination. When you visit, you immediately understand why civilization after civilization chose to make this magnificent place their home.”

Tourists will be able to visit soon. This month it was announced that the archaeological sites and other cultural and heritage attractions of AlUla will reopen to the public in October. From then on they will be accessible all year round, adding to the other attractions at AlUla such as the 11-week annual Winter at Tantora cultural festival, which since 2018 has attracted a wide range of international music stars.

Other projects in the pipeline, including the Sharaan Resort and Nature Reserve, due to open in 2023, will boost AlUla’s profile as a must-visit international destination. For those who call AlUla home today, a project that by 2035 is predicted to see 2 million visitors per year will also massively boost the local economy, generating 35,000 jobs and contributing an estimated SR120 billion ($32 billion) to the Kingdom’s gross domestic product.

The project has already had an impact on local lives, demonstrating on a micro scale the massive potential of Vision 2030 to transform the Kingdom’s economic future. Last year, Arab News reported that in under three years Al-Ula, a once-neglected region with few prospects for its residents, had achieved a “negative” unemployment rate of 2 percent.

Many more jobs are on the way. The RCU is running the Hammayah program to train 2,500 residents as advocates for AlUla’s heritage. A scholarship program will also see 1,000 students from AlUla sent overseas to study subjects vital to the region’s development as a cultural tourism destination.

If the ancient city of Hegra dominated the cultural and commercial landscape of its time, 300 km to the northwest a megacity is emerging which, in the words of the crown prince, “will drive the future of human civilization.” Neom, vast and being developed with its own rules and regulations independent of the Kingdom’s existing governmental framework, is perhaps best described as a city-state in the making.

At its launch in October 2017, the crown prince said Neom would “focus on nine specialized investment sectors and living conditions that will drive the future of human civilization — energy and water, mobility, biotech, food, technological and digital sciences, advanced manufacturing, media and entertainment, with livability as its foundation.”

Funded initially to the tune of $500 billion by Saudi Arabia’s Public Investment Fund (PIF), which the crown prince chairs, Neom is expected to attract regional and international investment as its potential becomes apparent.

Without doubt it will be an attractive place to live, work and visit — and a dramatic symbol of Saudi Arabia’s determination to meet the challenges of climate change head-on by diversifying its economy away from reliance on fossil fuels.

The rebirth of AlUla
Hegra, ancient city of the Nabataeans in Saudi Arabia’s historic AlUla Valley, is emerging from the mists of time to take its rightful place as one of the wonders of the world

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Situated in a part of the Kingdom blessed with breezes and mild temperatures, the development of what will be some of the world’s largest wind and solar farms means Neom will be powered solely by renewable energy.

Future technologies of all kinds, said the crown prince, will “form the cornerstone for Neom’s development,” from automated vehicles, passenger drones and free high-speed wireless internet access, to new ways of growing and processing food, and free world-class continuous online education.

Despite the 4,000-year gulf between them, in many ways the two cities, ancient and modern, are twinned.

Located within eight hours’ flying time of 70 percent of the world’s population, Neom is, in the words of Gavin van Tonder, head of its water sector, “an opportunity to create a template for what the world needs to be in the future.” The clue, after all, is in the name. Neom is derived from neo, the Latin word for new, and M, the first letter of the Arabic word mostaqbal (future).

Hegra, a self-contained city-state positioned at the junction of Arabia’s key trading routes, was the Neom of its day. Now, emerging from the past as part of the cultural reawakening of the AlUla region, it has a key role to play in the building of that new future.


Nearly 60 percent of employers have difficulty finding skilled workers, World Bank official says

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Nearly 60 percent of employers have difficulty finding skilled workers, World Bank official says

  • Luis Benveniste: We find that people lack opportunities to upskill or reskill in a rapidly changing labor market
  • Benveniste: There won’t be a jobs revolution without a skills revolution

RIYADH: Skill shortages remain a major constraint on business growth, with nearly 60 percent of employers reporting difficulty finding workers with relevant skills and capabilities, a World Bank official told Arab News.

On the sidelines of the Global Labor Market Conference in Riyadh on Tuesday, Luis Benveniste, senior adviser and acting global director for education and skills at the World Bank, said: “We find that people lack opportunities to upskill or reskill in a rapidly changing labor market, because of automation, because of digital transformation, because of climate change, jobs are changing, and so people are not able to acquire the skills that are relevant.”

He said that an estimated 70 percent of children in low and middle income countries are unable to read an age-appropriate paragraph with comprehension by the age of 10, making it harder to develop job-relevant skills later in life.

“In the absence of those foundational skills, it’s much harder to get those job-relevant skills that will enable them to open up to a fruitful, thriving career,” Benveniste said, adding that the gap often becomes more pronounced as young people enter the labor market.

He said addressing the challenge begins with expanding access to high-quality early childhood education, including proper nutrition and learning stimulation, and supporting teachers to use evidence-based teaching methods to strengthen literacy and numeracy.

He also pointed out the importance of closer coordination between governments, educators, and employers to better align training with labor market demand.

This includes engaging the private sector in curriculum development, improving labor market data systems, and expanding opportunities for apprenticeships and on-the-job training.

“More and more we see results-based financing approaches so that skilling institutions get rewarded not just for training people, but for ensuring that people who have been trained find jobs and hold those jobs six to 12 months after finalizing their training programs,” he said.

Benveniste highlighted the role of short-cycle training and micro-credentials, which allow workers to step in and out of the labor market to build flexible, stackable qualifications over time, helping them move up the job ladder.

He said that improved access to scholarships and training loans is also needed to ensure low-income learners are not excluded.

Tackling unemployment, particularly among youth and women, will require sustained collaboration between the public and private sectors, he said, adding that neither can respond to the scale of labor market change alone.

“There won’t be a jobs revolution without a skills revolution,” Benveniste said, emphasizing the need to invest in priority growth sectors such as manufacturing, agribusiness, and healthcare to ensure workers gain the capabilities required for the jobs of the future.

Speaking to Arab News, Samer Al-Kharashi, director of the UN Tourism Regional Office for the Middle East, said tourism has become a key tool for rural development and job creation, noting that a large share of the world’s poorest populations live in rural areas and are more likely to be in informal or vulnerable employment.

“Eighty-four percent of the world’s poor live in rural areas, (and) those people are twice as likely to be in informal or vulnerable employment.

“If you compare that 80 percent of them versus 44 percent in urban areas, that means that there is very important area that needs the focus of the mutual work from governments, international organizations and private sectors.”

Al-Kharashi said expanding tourism in rural regions can help create jobs, empower women and youth and support small and medium enterprises, but that it requires capacity-building, training, infrastructure and entrepreneurship support, alongside the adoption of digital and sustainable tools, including artificial intelligence.

He said the Kingdom’s tourism sector offers strong potential for Saudi entrepreneurs and SMEs, noting that local knowledge, culture, and technology skills are key assets for attracting visitors seeking authentic experiences.

“One of every 10 jobs is in tourism,” Al-Kharashi said, adding that the sector has moved from a recovery phase into a period of sustained expansion and growth, creating new opportunities in different segments of the industry.

“We can see that in numbers, tourism to national numbers have been raised in 2025 to 1.52 billion, with an increase of 4 percent from last year. So the sector is booming very strong. A lot of opportunities (are) coming. We can see that in depth.” 

He said the tourism industry is largely driven by the private sector, with governments and national organizations playing a regulatory and enabling role to ensure that development preserves the environment and supports the empowerment of women and youth.