Riyadh - Mubasher: Saudi crown prince and the chairman of the Saudi Public Investment Fund (PIF), Mohammed bin Salman announced on Tuesday a plan to build a $500 billion city in the north west of the kingdom.

The project known as NEOM will be a business and industrial zone that also links with Jordan and Egypt, and according to Reuters it represents the biggest effort by the kingdom to reduce its dependence on oil exports.

Prince Mohammed Mohammed bin Salman has appointed Klaus Kleinfeld, a former Siemens CEO, to run the NEOM project.

With a total are of 26,500 square kilometres, NEOM will focus on industries including energy and water, biotechnology, food, advanced manufacturing and entertainment, according to the Saudi Crown Prince.

The megaproject was launches during the Future Investment Initiative Conference in Riyadh that attracted more than 3,500 attendees from 88 countries.

NEOM will have a strategic location, adjacent to the Red Sea and the Gulf of Aqaba, and near maritime trade routes that use the Suez Canal, which will facilitate the zone’s rapid emergence as a global hub that connects Asia, Europe and Africa, according to the Public Investment Fund.

The zone will power itself solely with wind power and solar energy, and its first phase is expected be complete by 2025.

The PIF said in a statement that NEOM will offer an idyllic lifestyle paired with excellent economic opportunities that surpass that of any other metropolis, adding that it will attract Saudis and expatriates, as do all other global societies.