RIYADH: Saudi Arabia's NEOM is on a mission to become the world's most competitive free zone, said CEO Nadhmi Al-Nasr.
“NEOM is meant to be a model where this region will be a semi-independent free zone, it will have its own laws, it will have its own regulations and its own authority as a semi-government," he told an online conference hosted by Nikkei, the Japanese media group. "The reason for this is because it is our vision to make this the most competitive free zone in the world,” he said.
The event, held in partnership with the Ministry of Investment of Saudi Arabia (MISA) and the Smart City Institute highlighted the investment appeal of the giga project which was originally revealed in October 2017 when Crown Prince Mohammed bin Salman introduced it to the world at the Future Investment Initiative conference in Riyadh.
The $500 billion mega-city planned as part of the drive to diversify away from oil, is destined to transform more than 26,500 sq. km in the Kingdom’s northwestern Tabuk region.
Peter Terium, managing director of energy, water and fuel at NEOM, revealed the different types of renewable energy sources that were being developed on the project and the challenges involved.
“We are going to build a land of the future, and the future is about sustainability,” Terium said.
“Just to give you a feel for the size of what we’re talking about. We are thinking about a society in 2030 that will need 30 gigawatts or 30,000 megawatts of installed capacity to support its energy consumption; that is a lot and is comparable to the size of a country like Portugal or Austria,” he said.
Terium explained the development anticipated a high degree of electrification, “whether it is electric mobility, electric drones or using electricity as a carbon-free form of energy and applications where it is currently not done.”
In order to patch a desert the size of Belgium into a mega-city powered by renewable energy, certain technological advancements would be needed to meet the electricity consumption levels such as the use of micro grids, he said.
NEOM aims to be world's most competitive city
https://arab.news/w7cqf
NEOM aims to be world's most competitive city
- Giga project may need as much as 30 gigawatts or 30,000 megawatts of installed capacity by end of decade
Kuwait forecasts 54.7% rise in fiscal deficit as oil revenues weaken
JEDDAH: Kuwait expects its fiscal deficit to widen sharply in the 2026–2027 budget year as lower oil income weighs on public finances, with the shortfall projected to rise 54.7 percent to 9.8 billion dinars ($31.9 billion).
Announcing the draft budget, Finance Minister Yaqoub Al-Refaei estimated total expected revenues at 16.3 billion dinars, marking a 10.5 percent decline compared with the previous fiscal year.
Kuwait is pushing Vision 2035 reforms to diversify its economy and boost non-oil growth but remains exposed to oil price volatility despite moderate inflation and strong non-oil expansion.
“The minister disclosed that oil revenues were budgeted at 12.8 billion dinars, a 16.3 percent contraction compared to the current budget ending March 31, 2026,” the Kuwait News Agency, known as KUNA, reported.
Highlighting a positive trend for fiscal diversification, non-oil revenues are projected to rise 19.6 percent to 3.5 billion dinars.
He noted that total expenditure is expected to reach 26.1 billion dinars, with salaries and subsidies accounting for 76 percent, capital spending 11.8 percent, and other expenditures 12.2 percent. The FY 2026–2027 budget is based on a conservative oil price estimate of $57 per barrel.
The minister, however, stressed that Kuwait’s fiscal break-even price — the price needed to balance the budget — is significantly higher, at $90.5 per barrel.
The draft budget, covering April 1, 2026, to March 31, 2027, includes capital spending of 3.1 billion dinars, with significant allocations for infrastructure and strategic projects, according to a release by the Ministry of Finance.
Of this, 318 million dinars will fund the Ministry of Public Works for developments such as Mubarak Al-Kabeer Port, the Umm Al-Hayman plant expansion, the North Kabd station, and the expansion of Kuwait International Airport’s Terminal 2.
Additional allocations support the health ministry’s cancer control center, as well as the Defense and Interior ministries for military equipment.
Higher spending is also driven by a 741.2 million-dinar increase in the public treasury’s contribution to social insurance to cover pension fund deficits.
Conversely, support for fuel used in power generation and refined products declined by 449.2 million dinars due to falling global oil prices.
The ministry highlighted that the budget would create 14,518 new positions, reflecting efforts to boost employment while continuing to diversify revenue sources.
