This article is from: srnnews.com
By Timour Azhari and Federico Maccioni
RIYADH/DUBAI, Oct 4 (Reuters) – Saudi Arabia is quietly shelving plans to build one of its most ambitious stadiums for the 2034 FIFA World Cup, two sources familiar with the matter said, after delays and downscaling of the futuristic development housing it.
The NEOM Stadium was billed as an elevated arena in a glitzy 100-mile (160-km) steel and glass structure known as The Line, in turn part of the broader development known as NEOM.
NEOM was introduced about a decade ago as a centrepiece of de facto ruler Crown Prince Mohammed bin Salman’s Vision 2030, an ambitious plan to diversify the economy and cut reliance on oil.
Yasir Al-Rumayyan, governor of NEOM’s owner the Public Investment Fund, confirmed in April that The Line was no longer a priority, and said it was not vital before 2030, the original delivery target for its first phase. He denied any projects had been cancelled.
However, according to two sources, plans to build the NEOM Stadium have now been shelved indefinitely.
NEOM and the Saudi government media office did not reply to requests for comment, while Saudi Arabia’s Ministry of Sports redirected questions to the World Cup 2034 Hosting Higher Authority.
The Authority said “substantial delivery” of construction milestones for the event was already taking place, but did not address questions around the NEOM Stadium and costs. It shared images of some of the other stadiums under construction.
RIYADH DEVELOPING 15 VENUES FOR 2034 WORLD CUP
The 2034 World Cup is seen as a marquee event for Saudi Arabia, which under the Vision 2030 programme has invested heavily in sports via wealth fund PIF. The tournament will be the first time a single nation hosts the expanded 48-team format.
Riyadh is working to build or renovate 15 venues across five cities, as well as dozens of training facilities.
MEED Projects, a Dubai-based construction industry market intelligence platform whose team of analysts tracks tenders and projects in the region, puts the total value of the projects at $22.7 billion in data shared with Reuters.
According to MEED, NEOM’s stadium is expected to cost $2.5 billion. It lists the projected 46,000-seat stadium in its data as “on hold”.
The stadium has no listed completion date, according to the data, which describes the remaining stadiums and facilities as in various stages of development, with completion expected between 2026 and 2033.
Saudi Arabia is under increasing pressure from the Iran war, which has led to heavy disruptions to energy shipments and damage to critical infrastructure, with the kingdom facing attacks from the Iran-backed Houthis.
Last week, the Ministry of Finance said it expected a fiscal deficit this year wider than previously projected and a real GDP contraction of 3.6% following a drop in oil activities.
PIVOT FROM GIGA-PROJECTS
The geographic distribution of the stadiums adds to the challenge of delivering the projects, a third source said. That could further be compounded by some projects set to host stadiums being delayed or downsized, such as The Line or Riyadh’s New Murabba development, the source added.
In January Reuters reported that Saudi Arabia has suspended construction of The Mukaab, a colossal cube-shaped skyscraper at the centre of the New Murabba.
Reuters also reported last year that the PIF was pivoting from its focus on costly giga-projects to endeavours with more immediate financial returns, a strategy later articulated by Saudi officials.
Still, other projects for the World Cup are progressing. The Aramco Stadium in the eastern city of Al Khobar is set to be completed by the end of this year and host its first game in January, for which tickets are on sale.
Work on other planned stadiums is going ahead, a fourth source said.
(Reporting by Federico Maccioni in Dubai and Timour Azhari in Riyadh; Editing by Jan Harvey)
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