Podcast Summary: The Journal – "Neom, Pt 1: Skiing in the Desert"

Release Date: April 25, 2025

Introduction

In the April 25, 2025 episode of The Journal, hosted by Ryan Knutson alongside Rory Jones and Elliot Brown, the spotlight shines on NEOM—a colossal and ambitious project initiated by Saudi Arabia’s young leader, Prince Mohammed bin Salman (MBS). This episode delves into the inception, vision, challenges, and human stories behind NEOM, offering listeners an in-depth exploration of what could be the world’s most transformative urban development.

1. NEOM’s Grand Vision and Announcement

The episode opens with a retrospective look at a pivotal moment in 2017 when Maria Bartiromo, broadcasting from a glitzy Riyadh investor conference, introduced NEOM to a global audience. MBS unveiled NEOM as a futuristic city built from scratch in the Saudi desert, aiming to redefine urban living.

Maria Bartiromo [00:11]: "Ladies and gentlemen, it is an honor to be with you this afternoon as we kick off a very special part of the program right now as we watch something of a revolution happening here in Saudi Arabia."

Ryan Knutson narrates the event, highlighting the grandeur of the announcement and the ambitious scope envisioned by MBS. MBS compared NEOM to the technological leap from a basic Nokia phone to a modern smartphone, symbolizing the transformative intent behind the project.

Rory Jones [02:07]: "MBS was going to transform cities the same way Apple transformed phones."

2. Addressing Saudi Arabia’s Challenges

Rory Jones elaborates on the socio-economic challenges NEOM aims to tackle. Saudi Arabia faces a young and rapidly growing population, with 70% under the age of 30, and an economy heavily reliant on oil, where 70% of jobs are government positions.

Rory Jones [07:05]: "The kingdom faced a number of challenges that really were almost like a sort of ticking time bomb for a country that they'd have to solve."

MBS recognized the unsustainable nature of an oil-dependent economy and the pressing need to diversify revenue streams and create employment opportunities in the private sector.

3. Social Reforms as a Foundation

To pave the way for NEOM, MBS initiated significant social reforms aimed at modernizing Saudi society. These reforms included granting women the right to drive, increasing female workforce participation, allowing mixed public socialization, and reopening cinemas after a 40-year hiatus.

Rory Jones [09:10]: "He opened cinemas for the first time in like 40 years, which was like a huge moment."

These changes were strategic, aiming to cultivate a consumer-driven economy by increasing disposable income and fostering a more liberal social environment.

4. NEOM’s Planning and Innovative Design

NEOM’s planning involved extensive collaboration with top management consulting firms like McKinsey, Boston Consulting Group, and Oliver Wyman, resulting in over 2,000 pages of planning documents filled with futuristic and sometimes sci-fi-like ideas.

Rory Jones [12:20]: "There are flying taxis, robots that would clean your house for you while you're out at work. Classes taught by hologram teachers, more Michelin-starred restaurants than anywhere else in the world."

Central to NEOM’s vision is “The Line,” a groundbreaking architectural feat described as two parallel skyscrapers stretching 1,600 feet into the air and extending 106 miles, housing approximately 9 million people. The design emphasizes sustainable living with mirrored glass facades that blend seamlessly with the desert landscape.

Elliot Brown [14:19]: "At its full vision, it's absolutely enormous. If you just look at the square footage as envisioned, it would have more square footage than all of New York City."

5. Human Stories: Building NEOM

The episode transitions to personal narratives from individuals who joined NEOM, highlighting both the allure and the challenges of such an unprecedented project.

• Andy Wirth’s Journey:

  Andy Wirth, an experienced ski resort executive from Montana, was drawn to NEOM by its commitment to sustainability and renewable energy. Tasked with developing Saudi Arabia’s first world-class ski resort in the desert, Andy faced significant logistical hurdles, including the lack of natural snowfall.

  Andy Wirth [22:32]: "There was a poetic irony in that. Saudi Arabia, world's greatest producer of oil for generations, that was going to fund this."

  Andy’s determination led him to discover reliable weather data, indicating potential for artificial snowmaking despite high costs, underscoring the project's blend of ambition and practical challenges.

• Tony Harris’s Educational Endeavor:

  Tony Harris, an educational consultant, was enticed by NEOM’s promise of creating a world-class education ecosystem. Empowered to define his role, Tony and his wife relocated with their family and pet to build NEOM’s education sector from the ground up.

  Tony Harris [24:27]: "The normal rule of thumb was take your highest paying job and add 30% to that."

  Tony’s experience revealed systemic inefficiencies within NEOM’s initial planning, prompting him to overrule convoluted models in favor of more streamlined, startup-like approaches.

6. Execution Challenges and Reality Collisions

Despite the visionary plans, NEOM encountered substantial obstacles that threatened to derail its progress. Massive spending without proportional returns, logistical nightmares, and the sheer scale of the ambitions led to tensions among project leaders.

Tony Harris [31:07]: "We could not spend money quickly enough."

As the project progressed, it became evident that the financial and operational demands of NEOM might exceed Saudi Arabia’s capacity, casting doubts on the feasibility of achieving even a fraction of MBS’s grand vision.

Elliot Brown [31:24]: "I think we're sort of in the rapidly colliding with reality phase that's coming."

Conclusion and Teaser for Part 2

The Journal concludes Part 1 of its NEOM series by acknowledging the monumental gaps between NEOM’s futuristic aspirations and the practical realities on the ground. The episode sets the stage for Part 2, promising to delve deeper into the ongoing struggles and the potential unraveling of MBS’s desert utopia.

Ryan Knutson [31:32]: "Up in part two of our NEOM podcast. Coming tomorrow."

Notable Quotes with Timestamps

• Maria Bartiromo [00:11]: “Ladies and gentlemen, it is an honor to be with you this afternoon... as we watch something of a revolution happening here in Saudi Arabia.”
• Rory Jones [07:05]: “The kingdom faced a number of challenges that really were almost like a sort of ticking time bomb...”
• Rory Jones [12:20]: “There are flying taxis, robots that would clean your house... classes taught by hologram teachers...”
• Elliot Brown [14:19]: “At its full vision, it's absolutely enormous... more square footage than all of New York City.”
• Andy Wirth [22:32]: “There was a poetic irony in that... Saudi Arabia... that was going to fund this.”
• Tony Harris [24:27]: “The normal rule of thumb was take your highest paying job and add 30% to that.”
• Elliot Brown [31:24]: “I think we're sort of in the rapidly colliding with reality phase that's coming.”

Final Thoughts

This episode of The Journal provides a comprehensive look into NEOM’s ambitious plans, the visionary leadership driving it, and the tangible challenges it faces. Through engaging storytelling and firsthand accounts, the podcast paints a vivid picture of a city poised to redefine modern living—if it can overcome the significant hurdles ahead.

Stay tuned for Part 2: NEOM’s Unraveling Realities.