Saudi Arabia city of future Neom plans to grow crops in the desert

Saudi Arabia is teaming up with a Dutch greenhouse company to create “a synthetic climate” to make the desert bloom.

It’s carving out an area the size of some 15 soccer fields to form a horticulture oasis on the outskirts of Neom (artist image pictured), an entirely new city being built on the Red Sea coast that extends out into the desert. The commitment marks the biggest food-tech investment for a country whose largely arid landscape and extreme summer temperatures have long left it reliant on food imports. 
 

The project is just the start, according to Dutch horticulturist Van Der Hoeven, whose $120 million contract with the Saudi government entails design and construction of two test facilities on Neom’s outskirts, along with their service and operation over multiple years.

 

“We are building a synthetic climate where outdoor growing is difficult,” with a goal for plants to yield produce year-round, Van Der Hoeven’s Chief Executive Officer Michiel Schoenmaeckers said in an interview in Amsterdam. Food security is a priority for the planners of Neom, Crown Prince Mohammed bin Salman’s $500 billion showpiece project to turn an expanse of desert the size of Belgium into a high-tech region that may eventually host millions of people. 

The urgency has only grown since the global pandemic and Russia’s invasion of Ukraine highlighted risks to food security in the Middle East.

Apart from meeting the needs of the new city, the goal is eventually to turn the fledgling facilities into a regional food hub.

Saudi wealth fund takes $16 bn hit from SoftBank, technology

Saudi Arabia’s sovereign wealth fund reported a $15.6 billion comprehensive loss for 2022 after the value of its investments in SoftBank Vision Fund plunged and other tech ventures were hit by a market downturn.

The Public Investment Fund, or PIF, made income of $25.4 billion the year before, according to an annual financial report published Sunday.

The PIF, which is chaired by Crown Prince Mohammed bin Salman, significantly increased the proportion of its assets dedicated to Saudi stocks last year, from 24 per cent to 32 per cent. It also reduced from 20 per cent to 10 per cent the portion put toward International Strategic Assets, a portfolio which includes English football club Newcastle United FC and a Blackstone Group LP fund investing in US infrastructure.

Bloomberg