This presentation throws light on the risks associated with the NEOM City project by using PESTLE analysis. All features of Pestle analysis have been discussed.

1. PESTLE ANALYSIS

2. NEOM
City
A PESTLE analysis of the NEOM city project is a framework used
to examine the external factors that could impact its success.

3. P.E.S.T.L.E Analysis - POLITICAL
NEOM heavily relies on sustained political backing and financial commitment from the
Saudi government. Any change in leadership or priorities could jeopardize the project.
The volatile geopolitical environment in the Middle East poses potential
security risks, deterring investors and talent.
Diplomatic tensions between Saudi Arabia and other countries could hinder
foreign investment and partnerships.
Government
support:
Regional
stability:
International
relations:

4. P.E.S.T.L.E Analysis - ECONOMIC
Oil price
fluctuations:
Global economic
slowdown:
Attracting talent
and investors:
Saudi Arabia's dependence on oil revenues could be impacted by global
market fluctuations, potentially affecting funding for NEOM.
Competing with other mega-projects and established technology hubs
is crucial for attracting talent and investments.
A recession or economic downturn could discourage investments and
slow down NEOM's construction and growth.

5. P.E.S.T.L.E Analysis - SOCIAL
Cultural
shift:
Labor rights and
ethics:
Attracting diverse
population:
Creating a truly inclusive and multicultural environment is key
to attracting a diverse population.
Implementing a liberal and futuristic vision in a traditionally
conservative society might face resistance and social challenges.
Concerns about the treatment of migrant workers and potential
exploitation during construction could damage NEOM's reputation.

6. P.E.S.T.L.E Analysis - TECHNOLOGICAL
Cybersecurity
threats:
Technology adoption
and innovation:
Environmental
sustainability:
The project's ambitious sustainability goals require innovative solutions
for renewable energy, resource management, and waste reduction.
Reliance on advanced technology and automation makes NEOM
vulnerable to cyberattacks and data breaches.
Keeping pace with rapid advancements and integrating them
seamlessly into NEOM's infrastructure is crucial.

7. P.E.S.T.L.E Analysis - LEGAL
Investment
regulations :
Data privacy and
security laws:
Labor laws and
regulations:
Robust data privacy and security laws are necessary to protect
individuals' data and build trust in NEOM's technological systems.
Establishing a clear and transparent legal framework for foreign
investors and businesses is essential for attracting capital.
Ensuring fair and ethical labor practices in line with international
standards is critical for NEOM's reputation and long-term success.

8. P.E.S.T.L.E Analysis - ENVIRONMENTAL
Climate change and
extreme weather
Protecting sensitive
ecosystems:
Sustainability and
resource management:
Building in a desert region poses challenges due to water
scarcity, heatwaves, and potential climate-related disasters.
Implementing sustainable practices for water, energy, and
waste management is essential for NEOM's long-term viability.
NEOM's development must be mindful of preserving surrounding
ecosystems and minimizing its environmental impact.

9. Thank you
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