Addressing risk, challenges, and solutions in Megaprojects: A case study of Neom Smart City in Saudi Arabia

Abstract

Neom Smart City is designed as a high-tech city with sustainable living and renewable energy sources such as solar power and autonomous transportation systems. The City aims to become an attractive destination for talents and investment Mega Projects are more common in the 21st century due to global population growth, urbanisation, and technological innovation that requires the establishment of big projects. The aim of this research is to focus on risks, challenges, and solutions that may occur at the Neom Smart City project in KSA, and provide insights for the effective management of megaprojects. A positivist philosophy and a deductive research approach was used in this research. The overarching methodology was quantitative. The data-gathering procedure involved questionnaire instruments. The sample involved twenty participants including project managers, while the data analysis technique used was descriptive and inferential statistics using SPSS and crucial ethical considerations were confidentiality and informed consent. Descriptive analysis of the findings have revealed that the participants perceived financial risks to be the most important concerns, followed by legal and construction risks. The result from the study also shows poor planning, political failures, and the lack of high-performing teams were the most significant contributor to the failure of megaprojects. The inferential statistics have revealed that there is a significant positive correlation between design risks and legal risks, contractual risks, construction risks and operational management risks. Financial risks are linked to construction risks, political risks, and leadership risks. Empirically, financial risks are influenced by contractual risks, poor leadership, and poor planning. The outcomes also suggest that stakeholder collaboration has a statistically significant impact on construction risks.