NightOwl

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Crown Prince Mohammed intends for Neom, a $1.5 trillion development on the Red Sea coast, to be a showpiece that will transform his country’s economy and serve as a testbed for technologies that could revolutionize daily life. Along with The Line, Neom’s plans include an industrial city, ports and tourism developments. It’s also set to host the Asian Winter Games in 2029 at a mountain resort called Trojena.

The pullback on The Line comes as the kingdom’s sovereign wealth fund has yet to approve Neom’s budget for 2024, the people familiar with the matter said. It shows that the financial realities of the trillions of dollars of investment are starting to cause concern at the highest levels of the Saudi government as it tries to fulfill its ambitious Vision 2030 program, the overarching initiative tasked with diversifying the kingdom’s economy.

 

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Finance Minister Christian Lindner has indicated to fellow ministers that the defense budget will be maintained at the same level next year, while all other ministries will again have to cut spending, according to the people.

 

María Dolores Miño, director of Ecuador’s independent Law and Justice Observatory and a law professor at the International University of Ecuador, said the raid was not only “extremely embarrassing” for Ecuador but also opens up the possibility of serious repercussions.

“The scope of a political sanction and its impact should not be underestimated,” Miño said. She added that although the process that Mexico will initiate before the World Court will take time “there will come a time when we have that sentence, which will include economic reparations that will have to be paid with Ecuadorians’ money.”

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