NEOM’s new logistics look
Saudi Arabia recasts NEOM as a regional logistics hub amid war disruption.
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This week, we explore how the US-Israel-Iran war is impacting the Middle East’s futuristic megaprojects, online content crackdowns, the region’s data center leaderboard, and more.
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TOP STORY
A countryside road leading to the mountains of NEOM, Saudi Arabia. — Getty Images
NEOM’s new logistics look
Last week, Saudi Arabia rolled out a new sales pitch for NEOM, the futuristic megacity first announced nearly a decade ago. The new focus: global connectivity.
Once core to Riyadh’s post-oil ambitions, the sprawling project in the kingdom's northwest corner is now being promoted as a logistics hub. On April 14, NEOM introduced a new multimodal corridor connecting Europe, Egypt and Gulf Cooperation Council countries, developed in collaboration with Egyptian maritime firm Pan Marine. According to a press release, the corridor combines trucking and ferry-based freight, with the route aiming “to offer a reliable alternative to traditional pathways.” That phrasing can be read as a reference to the Strait of Hormuz.
With the US-Israel-Iran war disrupting energy and trade flows through the Gulf waterway, the kingdom is seizing the moment to reimagine the troubled megaproject. What was once envisioned as a sci-fi utopia in the Arabian desert is now being recast as critical infrastructure.
That shift was already underway. Slower oil revenues had pushed Riyadh to scale back parts of its Vision 2030 agenda, including delays to NEOM, which the kingdom earlier this year began repositioning as an AI-driven data center hub. The war may now be accelerating that pivot while also straining other big bets.
Last week, the Public Investment Fund outlined a new five-year strategy prioritizing domestic investment. The fund’s governor, Yasir Al-Rumayyan, also confirmed for the first time that a 100-mile-long skyscraper known as The Line, part of NEOM, was no longer a priority. He denied, however, that related projects had been canceled.
CLICKABLE
Ahmed Shihab‑Eldin walks the "Palestine 36" red carpet during the Doha Film Festival 2025 on Nov. 24, 2025 in Doha, Qatar. — Tristan Fewings/Getty Images for Doha Film Festival
US journalist Ahmed Shihab-Eldin has been detained by Kuwait authorities for at least six weeks since posting war-related footage online. His arrest comes as Gulf authorities seek to limit the spread of content related to the US-Israel-Iran war.
Iran’s highly restricted local intranet has continued operating throughout the war, allowing access to approved domestic websites, but it is insufficient for normal business activity. Businesses and entrepreneurs have been deprived of AI tools, Google services and even email.
YouTube said last week it had terminated a channel belonging to a pro-Iran group that produced viral Lego-themed AI videos mocking US President Donald Trump.
An international media association last week accused the Israeli military of discrediting a Lebanese journalist it killed last month by circulating an AI‑generated image of him in Hezbollah fatigues.
DEALFLOW
Lucid, Nuro, and Uber unveil a robotaxi during Nvidia Live at CES 2026 ahead of the annual Consumer Electronics Show in Las Vegas, Nevada, on January 5, 2026. — Patrick T. Fallon / AFP via Getty Images
- Uber and the PIF invest $750 million into electric vehicle maker Lucid
- Optical chip startup Teramount (Israel) is acquired by Molex (United States) for $430 million
- The Qatar Investment Authority participates in a $405 million funding round for digital bank Plata (Mexico)
- E-commerce startup Aya (Saudi Arabia) raises $7 million from backers including the PIF’s Sanabil Investments
- AI cyber startup Capsule Security (Israel) secures $7 million
- Fintech startup INVIA (Egypt) raises $1.2 million
- Crypto wallet provider Zengo (Israel) is acquired by the digital trading platform eToro
- Silicon photonics firm DustPhotonics (Israel/United States) is acquired by Credo Technologies (United States).
- The UAE’s Ministry of Investment signed a memorandum of understanding with Jereh Group (China) to develop clean energy and nuclear technology.
DATA DISCOVERY
The Middle East and North Africa had at least 360 data centers as of April 2026, according to figures published by Statista. Turkey led the region with 77 data centers. That total, however, was dwarfed by the world’s largest data center market, the United States, which has more than 4,000 facilities.
ACTIONABLE INTELLIGENCE
A visitor stands near a Starlink antenna for aircraft on display at Al-Maktoum International Airport during the Dubai Airshow 2025 in Dubai on November 20, 2025. — GIUSEPPE CACACE/AFP via Getty Images
⚠️ Two foreigners have reportedly been arrested in Iran for importing Starlink technology into the country.
🍫 Celleste Bio, an Israeli startup backed by Cadbury owner Mondelez, has produced the world’s first lab-grown chocolate bars.
🗓️ The Iran war could delay the rollout of subsea fiber-optic cables vital to the Gulf’s tech ambitions.
🗓️ Kuwait has reportedly extended the bid submission deadline for a tender linked to planned Google Cloud data centers.
📈 Deal watch: US AI chipmaker Cerebras Systems has revived plans for an initial public offering after facing scrutiny over its UAE ties.
🔎 A deadly aircraft crash in Jordan two years ago had a previously unreported link to Apple, with the pilot filming marketing materials for the tech giant at the time of the crash.
🔜 The UAE is considering plans to consolidate government-owned Chinese assets under a new investment vehicle, a move that could have ripple effects for the Gulf state’s tech investments.
👀 Israel is using new AI-powered artillery in southern Lebanon.
🇸🇾 Syria has launched a national startup agenda aimed at boosting investment and jobs.
👶 Amid efforts to restrict children’s social media use, Egypt will launch a “child SIM card” featuring age-based restrictions.