Saudi Arabia looking to China for a lifeline for its futuristic city could mean trouble for the US (2024)

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But first, a city on the brink.

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The big story

Saudi Arabia needs backup

Saudi Arabia's dreams of a futuristic city are turning into a financial nightmare, and one of its solutions could spell trouble for the US.

Since 2017, the Kingdom has touted big plans for the desert megacity Neom. The project is the centerpiece of Crown Prince Mohammed bin Salman's Vision 2030, which hopes to reduce the economy's reliance on fossil fuels.

Neom's planned features are eye-popping, to say the least. There's the world's longest infinity pool, a year-round ski resort, and a mixed-reality theme park. And The Line — a city built between two massive, mirrored skyscrapers — looks straight out of a sci-fi movie.

But all these fancy things don't come cheap. Some estimates for Neom have ballooned up to $1.5 trillion. And while the Kingdom was initially confident foreign investment would help foot the bill, that hasn't been the case.

Now Saudi Arabia is turning to another country with economic headaches: China. The Kingdom hopes China will invest billions in the project, which could deepen ties between the two countries. That's a troubling potential future for the US, Business Insider's Tom Porter writes.

China's interest in Neom could be from multiple angles.

The city plans to heavily use renewable energy, a key area of focus for China as it digs itself out of its economic hole.

But other opportunities for China in Neom are more troubling.

While Neom is being pitched as a "smart city" that collects data on residents, experts previously told BI it could really be part of a massive surveillance program powered by Chinese technology.

China has already been clear that its AI strategy is to shape reality and enforce its power. That type of authoritarian vision is something it shares with Saudi Arabia.

That poses a risk for the US, which needs all the allies it can get in the Middle East as it navigates the war in Gaza.

Still, the Kingdom is running out of options. Saudi Arabia has reportedly already started borrowing to cover costs. And the Crown Prince is also reportedly ready to start having "tough conversations" about the project.

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What's happening today

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Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. George Glover, reporter, in London. Annie Smith, associate producer, in London. Amanda Yen, fellow, in New York.