Why Saudi Arabia Is Building a Floating City

Key Concepts:

• Oxagon: An octagonal city in Saudi Arabia, part of the NEOM project, consisting of land and floating structures.
• NEOM: A development project in northeastern Saudi Arabia aiming to diversify the economy away from oil.
• The Line: A 100+ mile long linear city, part of NEOM.
• Trojena: The mountainous region of NEOM.
• PIF (Public Investment Fund): Saudi Arabia's sovereign wealth fund, used to finance NEOM projects.
• Saudi Aramco: The state-owned oil company of Saudi Arabia.
• Mohammed bin Salman (MBS): Crown Prince of Saudi Arabia, driving force behind NEOM.
• Sustainability: Focus on future technologies like AI, robotics, green hydrogen, and ammonia.

1. Introduction to Oxagon

• Oxagon is Saudi Arabia's vision of a future city, an octagonal structure comprising both land and floating sections.
• Announced in November 2021, the project is currently in its initial phase.
• It is a key component of the larger NEOM project in northeastern Saudi Arabia.

2. The NEOM Project and Economic Diversification

• NEOM aims to create a new chapter in Saudi Arabia's history by diversifying its economy away from oil.
• The kingdom is investing oil revenues into future projects, attracting international companies through subsidies and partnerships.
• NEOM consists of three main regions: The Line, Trojena, and Oxagon.
• Oxagon is intended to be the industrial powerhouse of the NEOM region.

3. Oxagon's Design and Functionality

• The city is divided into land and sea sections by a waterway, allowing container ships to access the port.
• The port is planned to be a transshipment center, facilitating short supply chain times from ship to factory.
• Oxagon aims to capitalize on its proximity to the Suez Canal, a key global trade route handling approximately 12% of global trade.
• The ocean section will be the world's largest floating structure, incorporating housing and leisure activities alongside industrial facilities.

4. Focus on Future Technologies and Sustainability

• Oxagon seeks to attract companies in future technologies such as artificial intelligence and robotics.
• Sustainability is a key focus, with partnerships for green hydrogen and ammonia production, as well as desalination plants.
• An oceanographic institute is planned to become a leading center for marine research.

5. Critical Perspectives and Contradictions

• The video highlights that Oxagon is still largely a vision, with the final form subject to change.
• The project is heavily promoted through opulent films and sponsorships of international events.
• The symbolic nature of building half the city in the water raises questions about practicality and genuine sustainability.
• Concerns are raised about the potential impact on the Red Sea's marine habitat and the contradiction between environmental protection and building a mega-port.
• The video questions whose vision the city truly represents, given these contradictions.

6. Mohammed bin Salman's Role and Financial Structure

• NEOM and Oxagon are flagship projects of Crown Prince Mohammed bin Salman (MBS).
• MBS has consolidated control over Saudi Aramco and the PIF.
• Saudi Aramco's IPO in 2019 raised $25.6 billion, with proceeds directed to the PIF.
• Further transfer of Saudi Aramco shares to the PIF in 2022 strengthens the fund's financial position.
• The PIF is the primary vehicle for financing Oxagon, operating as a closed joint stock company owned by the fund.
• Critics argue that MBS uses the PIF to circumvent institutional hurdles and implement a top-down approach to project planning.

7. The Broader Question of Urban Development

• The video questions whether contemporary cities are failing and whether Oxagon represents an ideal urban environment.
• It contrasts Oxagon's planned design with existing cities like Paris, Cape Town, Amsterdam, and New York City.

8. Displate Advertisement

• The video includes a sponsored segment for Displate, showcasing their metal posters featuring maps and artwork.
• A discount code is offered to viewers for 25% off one or two posters and 29% off three or more.
• Displate plants a tree for each purchase.

9. Conclusion

• Oxagon represents a bold vision for a future city, driven by Saudi Arabia's desire to diversify its economy and embrace new technologies.
• However, the project faces questions regarding its practicality, sustainability, and potential environmental impact.
• The financial structure, with the PIF as the primary funding vehicle, reflects Mohammed bin Salman's centralized control over the project.
• The video encourages viewers to consider the broader implications of urban development and the challenges of creating truly sustainable and livable cities.