The Line in Neom is 'the greatest real estate challenge that humans have faced'


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The Line megaproject in Neom, Saudi Arabia, will be the greatest real estate challenge undertaken by mankind, says one of the men turning the vision of a 170-kilometre long, 500-metre tall city into reality.

Once completed, it will be the largest megastructure in the world — a futuristic, mirrored residential and business block that rises over an expanse of desert, pristine, emerald waters, rocky inlets and white beaches of the rugged Tabuk province.

Designed to house up to 9 million people, the Neom project is the centrepiece of the most ambitious urban planning project in history.

"We are building 120 Burj Khalifas' worth of real estate in the first phase," Giles Pendleton, executive director of development at The Line in Neom, who joined the team in February, tells The National.

Giles Pendleton joined the team behind The Line team in February. Photo: Facebook
Giles Pendleton joined the team behind The Line team in February. Photo: Facebook

The structure will be the largest building in the world by a wide margin. The Pentagon, home to the US Department of Defence and the world's largest office building with nearly 30 kilometres of corridors, is tiny by comparison.

Even after 24 years of leading developments in Australia, the Middle East, Africa and Eastern Europe, Mr Pendleton has never taken on something on the scale of The Line.

He says the visionaries behind the plan, including Saudi Arabia's Crown Prince Mohammed bin Salman, see it as nothing less than a reinvention of urban planning.

What is The Line project in Neom?

The Line will be integral to the futuristic new city of Neom, a project Prince Mohammed has identified as one of the most important aspects of the Saudi Vision 2030, which aims to diversify the country's oil-dependent economy.

"Our commitment to delivering The Line on behalf of the nation remains resolute," Prince Mohammed has said.

But since the announcement of the project, many have had questions about the feasibility, the timetable and exactly what life inside The Line will be like.

The National put these to Mr Pendleton.

"The Line should become a test bed and something the world looks at and says 'well, that is a forward-looking way at looking at our problems," he explains.

"We have immense support from our leadership and an incredible vision that we are attempting to achieve."

The Line will have a mirror facade, created by a team of world-renowned architects and engineers, which will allow even its footprint to "blend with nature".

But this doesn't come without significant challenges.

We are attempting to reprogramme humans as to how we live in megastructures and how we use to them to our advantage
Giles Pendleton,
executive director of development at The Line in Neom

Mr Pendleton says building higher than 300 metres starts to become complicated because of the scale and this will be the case with The Line.

"From a technical perspective, this is the greatest real estate challenge that has ever been faced by mankind," he says.

This is, he says, in part because The Line does not feature stand-alone skyscrapers built close together but rather it will be one continuous building.

"We are not building a series of skyscrapers where you go down a skyscraper to go across the street to go up another skyscraper. We are essentially a continuous skyscraper so we are attempting to reprogramme humans as to how we live in large or megastructures."

The Line as a Green megaproject

The project’s green and energy-efficient credentials are front and centre of the entire plan and are especially challenging in a desert where temperatures well above 40°C are not uncommon.

"The city of London and the future city Neom will have the same population of 9 million," Mr Pendleton says. But building in a single long line will make a difference, he explains.

"London has 1,600 sq km of city, so it's extremely large and spread out, he says. "We are the exact same population size [but] we'll have dedicated 99 per cent of the same land London has as pristine nature.

"The land is being returned to its original intent ― things like power lines will be removed to give an unencumbered natural landscape as part of the Crown Prince's vision. We are going to touch the land as lightly as we can and the rest we must rehabilitate and make as natural and organic as possible, which includes rewilding the environment with animals that once lived here in an indigenous state and planting more trees."

Mr Pendleton says building the metropolis from a blank slate could help eradicate many of the problems that historic cities have amassed over decades and centuries.

These include "desocialisation, where people from different races, religions, who different linguistically, are living in the same city with the same citizenship, but completely separate from each other". He says: "We talk about pollution, urban sprawl where cities are just consuming vast amounts of pristine farm landscapes."

That will not be the case in Neom, he assures.

Neom's 'zero gravity' thinking

The Line attempts to solve this problem by "vertically stacking and packing the entire city above itself — and the efficiency has significantly improved, the pollution levels are significantly removed — to a point of having 100 per cent renewable energy".

"The Line will be the first city in the world to be powered by renewable energy including wind, solar and hydrogen," Mr Pendleton says.

We will be the first city in the world to be powered by renewable energy
Giles Pendleton

Prince Mohammed has also explained the concept of zero-gravity urban living that is being applied in The Line.

“The idea of layering city functions vertically, giving people the possibility of moving seamlessly in three dimensions to access them, is a concept referred to as Zero Gravity Urbanism,” Prince Mohammed said last week, adding that he is committed to delivering a city of the future.

Mr Pendleton explains what this means in practice.

"So, where something traditional would be on the ground, like a sports stadium, why can't you put it up in a building or in the middle so every person can be equidistant from that activity?" he says. "We have this constant commute to work, theatre, beach or school, so how do we break them down and put them back together to solve these questions?"

While most cities are blanketed in industrial pollution or smog from traffic, this won't be the case in The Line, he says.

"The easiest way to deal with air pollution is not to create any," says Mr Pendleton. "We don't have cars, trucks or coal-fired power stations ― nothing that's generating pollution. What we do have is an abundance of wind and solar radiation, which is our primary energy supply supplemented by green hydrogen, we will be investing heavily in that."

That sunlight will bathe rooms, hallways and courtyards in bright light throughout the day, with the building designed to let in as much natural light as possible.

Inspired by "Middle Eastern and Arabic architecture over generations, over hundreds of years", the designs allow for fresh air to flow through large buildings for natural cooling.

So, how will residents get around without cars or roads?

There will be a superfast rail line running the length of the city to shuttle people over larger distances but even for shorter journeys everything from elevators to pods — mini transport vehicles on rails ― will be powered through a renewable-powered electric system.

One major challenge will be water supply, which will in large part comprise desalinated ocean water. Traditionally, this has been an energy-intensive process.

"Desalination is part of our thinking," Mr Pendleton says. "We are going to heavily invest in the treatment of water."

But the new, smart city will allow for any leaks in the water-pipe network ― traditionally the largest waste of water in a municipal system ― to be identified quickly.

"These are problems we can solve as it's in a vertical building," Mr Pendleton says. "The moment we have a leak we can see it, as opposed to it leaking in the ground when you don't really see it.

"That's what The Line is being designed to do. Do we produce more energy because we are building more buildings? Or do we make construction more efficient and do this in a way to help people live better?"

So, is it plain sailing from here, now that the team behind The Line has an understanding of the challenges? Not quite, says Mr Pendleton.

"Have we solved every problem? No. No city has solved all of its problems technically. But working with the world's greatest minds and companies involved in Neom, in a collaborative way, we are able to tap the best of what the world has to offer logistically, technically and looking towards solving challenges using an integrated approach."

Despite these numerous challenges, Mr Pendleton pushes back against those who claim the vast project is too ambitious to complete, and says it is already well under way.

"We are very much under construction ― come down to the exhibition happening in Jeddah and see the construction video," he says.

"The public is aware of the tunnelling contracts that we have awarded ― those are for the large infrastructure that runs parallel to The Line, called The Spine, which is the utility corridor which also links the airport.

"The early works are under way and as you can imagine you can't build it all at once but in stages, almost like rolling the city out module by module. The machines keep moving down as they build more of it over time."

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South Africa World Cup squad

South Africa: Faf du Plessis (c), Hashim Amla, Quinton de Kock (w), JP Duminy, Imran Tahir, Aiden Markram, David Miller, Lungi Ngidi, Anrich Nortje, Andile Phehlukwayo, Dwaine Pretorius, Kagiso Rabada, Tabraiz Shamsi, Dale Steyn, Rassie van der Dussen.

Three-day coronation

Royal purification

The entire coronation ceremony extends over three days from May 4-6, but Saturday is the one to watch. At the time of 10:09am the royal purification ceremony begins. Wearing a white robe, the king will enter a pavilion at the Grand Palace, where he will be doused in sacred water from five rivers and four ponds in Thailand. In the distant past water was collected from specific rivers in India, reflecting the influential blend of Hindu and Buddhist cosmology on the coronation. Hindu Brahmins and the country's most senior Buddhist monks will be present. Coronation practices can be traced back thousands of years to ancient India.

The crown

Not long after royal purification rites, the king proceeds to the Baisal Daksin Throne Hall where he receives sacred water from eight directions. Symbolically that means he has received legitimacy from all directions of the kingdom. He ascends the Bhadrapitha Throne, where in regal robes he sits under a Nine-Tiered Umbrella of State. Brahmins will hand the monarch the royal regalia, including a wooden sceptre inlaid with gold, a precious stone-encrusted sword believed to have been found in a lake in northern Cambodia, slippers, and a whisk made from yak's hair.

The Great Crown of Victory is the centrepiece. Tiered, gold and weighing 7.3 kilograms, it has a diamond from India at the top. Vajiralongkorn will personally place the crown on his own head and then issues his first royal command.

The audience

On Saturday afternoon, the newly-crowned king is set to grant a "grand audience" to members of the royal family, the privy council, the cabinet and senior officials. Two hours later the king will visit the Temple of the Emerald Buddha, the most sacred space in Thailand, which on normal days is thronged with tourists. He then symbolically moves into the Royal Residence.

The procession

The main element of Sunday's ceremonies, streets across Bangkok's historic heart have been blocked off in preparation for this moment. The king will sit on a royal palanquin carried by soldiers dressed in colourful traditional garb. A 21-gun salute will start the procession. Some 200,000 people are expected to line the seven-kilometre route around the city.

Meet the people

On the last day of the ceremony Rama X will appear on the balcony of Suddhaisavarya Prasad Hall in the Grand Palace at 4:30pm "to receive the good wishes of the people". An hour later, diplomats will be given an audience at the Grand Palace. This is the only time during the ceremony that representatives of foreign governments will greet the king.

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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: August 18, 2022, 3:27 AM