Neom: Saudi forces 'told to kill' to clear land for eco-city

Is it obvious to Saudi leadership?

This same line of questioning was used about the Russian buildup before invading Ukraine. Some thought the prospect of an invasion was so ridiculous that it must have had another motive.

Putin charged ahead anyway.

I've known plenty of people in leadership positions who thought they could change the laws of physics, tax law, or demand ridiculous things be completed by fiat.

Neom is supposed to diversify the Saudi economy away from oil. They want to create the silicon valley of the middle east as well as a tourism destination. They do seem to be focusing on the vanity aspects instead of the practical (but at least the airport is now open).