The Line and its potential impact on global construction

Saudi Arabia’s NEOM project is reshaping the conversation around urban planning, sustainability and global resource demands. This futuristic city aims to redefine the urban landscape, presenting an ambitious vision of a zero-emission, hyper-connected world. However, alongside its forward-thinking design comes an immense demand for construction materials—particularly steel. Recent reports suggest that this new mega city could require up to 20% of the world’s steel production, a staggering claim that raises questions about its impact on global material markets, prices and availability.

The new mega city – or The Line as it is known - is part of the $500 billion NEOM project, a vast new city that will stretch for 170 kilometres across Saudi Arabia’s northwest region. Designed as a zero-carbon, sustainable urban environment, it is intended to house nine million people in two parallel buildings rising 500 metres above sea level. Each building is expected to be lined with mirrors and will rely on renewable energy sources, such as wind and solar, to power its infrastructure.

The project’s vision is ambitious, but the scale is almost unfathomable. Building a city of this magnitude requires massive amounts of materials. Recent reports suggest that The Line alone could require a significant portion of the global supply of steel—up to 20% of annual production. This revelation was made by NEOM's chief investment officer during an interview with Arabian Gulf Business Insight, stating that NEOM is set to become the largest consumer of construction materials globally for possibly decades to come.

Steel is a core component in construction, offering strength and durability. Globally, around 1.9 billion metric tons of steel are produced annually. For NEOM's The Line to require 20% of that production means it could consume approximately 380 million metric tons of steel over the project's lifespan—a quantity almost equal to the annual production of major steel-producing countries like India and the United States.

The sheer scale of this demand is bound to have ripple effects across global markets. Increased demand often leads to higher prices. NEOM's consumption of vast quantities of steel could drive up prices globally, especially as the project gains momentum. Steel prices are already volatile due to several factors, including post-pandemic recovery, supply chain disruptions and fluctuating raw material costs. Adding a project of NEOM’s scale to the mix could push prices higher, impacting global construction projects. Click link to read more:

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