Envisioned as a hub for technological innovation, the $500 billion (£381bn) “Neom” project will be built on untouched land along the country’s Red Sea coastline near Egypt and Jordan and will span three countries.

The ambitious plans will be funded by the kingdom’s sovereign wealth fund, which the prince oversees, as well as the Saudi government and a range of private and international investors.

“This place is not for conventional people or conventional companies,” Crown Prince Mohammed bin Salman told an audience of investors from around the world gathered in the capital, Riyadh, on Tuesday.

“This will be a place for the dreamers of the world.”

The crown prince envisions it as a hub for innovation, where scientists would develop new technologies and investors would make healthy returns. It’s a place, he said, where drones, driverless cars and robotics might all work together to ensure there’s no traffic, for example.

The 26,500 square km (10,230 square mile) zone will focus on industries including energy and water, biotechnology, food, advanced manufacturing and entertainment.

The zone will be adjacent to the Red Sea and the Gulf of Aqaba, and near maritime trade routes that use the Suez Canal.

The land mass will extend into Egypt and Jordan, making it the first private zone to cover three countries.