Saudi Arabia Scales Back Ambitious Neom Megacity After Cost and Delay Concerns
Saudi Arabia has significantly reduced the scope of its ambitious Neom megacity project after mounting concerns within government circles over soaring costs and persistent delays, according to a report by the Financial Times.
At the heart of the rethink is The Line, a futuristic city originally envisioned as a 100-mile-long stretch of mirrored skyscrapers rising 500 metres above the desert. The development was designed to house millions of residents in a car-free, AI-driven urban environment and was set to become one of the most striking symbols of the kingdom’s transformation.
However, construction of The Line was effectively put on hold late last year as officials in Riyadh began reassessing the project’s feasibility and financial sustainability. People familiar with internal discussions say Crown Prince Mohammed bin Salman now supports a “far smaller” and less costly version of the development, marking a major shift from the project’s original scale and ambition.
Neom was launched as a cornerstone of Vision 2030, the crown prince’s flagship economic reform agenda aimed at reducing Saudi Arabia’s dependence on oil by expanding sectors such as real estate, tourism, technology, and entertainment. The project was intended to signal the kingdom’s readiness to compete with global innovation hubs and attract international investment.
Despite its bold vision, the scale of Neom has increasingly drawn scrutiny. The Financial Times estimates that around $50 billion had already been spent on the project by November, raising alarm among officials as costs mounted without clear timelines for completion. Originally scheduled to be ready by 2030, the development has faced repeated delays and engineering challenges.
The decision to scale back reflects a growing recognition within the Saudi leadership that the original concept may have been overly ambitious, particularly amid tighter global financial conditions and competing domestic priorities. While Neom is not expected to be abandoned entirely, its revised form is likely to focus on more achievable phases rather than the sweeping megastructure first unveiled.
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The recalibration underscores a broader shift in Saudi Arabia’s development strategy from headline-grabbing mega-projects toward more pragmatic, cost-conscious execution, even as the kingdom continues to pursue economic diversification under Vision 2030.
