As a stagflationary environment transitions into what could soon be a global depression, global central banks are frantically raising interest rates to contain inflation. But amidst all this, Saudi Arabia still has plans to construct the largest buildings ever.
The development of skyscrapers and business cycles are frequently linked. Tall skyscraper construction typically begins during economic booms and is completed or halted during bust stages.
According to Bloomberg, which cited sources familiar with the topic, Saudi Arabia is preparing to develop a megacity with the world’s biggest skyscrapers in an unpopulated portion of the nation.
According to sources, Saudi Crown Prince and de facto ruler Mohammed bin Salman is the mastermind behind the proposed half-billion-dollar megacity development, which includes twin skyscrapers that rise 1,640 feet and stretch for tens of miles horizontally. The buildings would start on the coast of the Red Sea and extend into the desert. The towers will be filled with residential, retail, and commercial space, according to the plan.
Prince Mohammed’s vision of converting Saudi Arabia’s economy from predominantly fossil fuel to a high-tech hub, drawing global investment and expertise to ignite a new technological development surge, was first unveiled in 2017.
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Neom will be a futuristic, environmentally friendly town connected by The Line, a smart linear metropolis without cars that will be connected by underground hyper-speed train systems.
Saudi Arabia currently has the world’s highest structure, the Jeddah Tower, which stands at 2,192 feet (planned 3,300 feet). The building’s development began in 2013 but has yet to be completed.
The Skyscraper Index (read below), devised by property expert Andrew Lawrence, establishes a link between business cycles and skyscraper construction: Tall buildings are frequently started during a period of expansion and finished after or before a recessionary period.
As a stagflationary environment transitions into what could soon be a global depression, global central banks are frantically raising interest rates to contain inflation. For wealthy clients, Goldman Sachs has secretly prepared a “Recession Manual.”
The dilemma is whether the unfished Jeddah Tower foreshadows a prospective recession, and whether the funding of the Prince’s mega-project Neom foreshadows a future trough.
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