Saudi Arabia’s once-audacious plan to build an $8 trillion futuristic megacity known as NEOM is being quietly reworked as the kingdom confronts rising costs, weaker oil revenues and shifting national priorities, according to multiple recent reports. What was once envisioned as a revolutionary urban hub across the desert is now being trimmed, delayed or repurposed to align with economic realities and the changing global investment landscape.
The recalibration extends across NEOM’s flagship components, including the iconic linear city concept known as The Line and other high-profile elements of the Vision 2030 strategy. Officials insist the project is not abandoned, but the scale, timing, and focus have undeniably shifted as Riyadh balances ambition with fiscal constraints and long-term goals.
A Megacity Reimagined as Realities Shift
When NEOM was first announced in 2017 by Saudi Crown Prince Mohammed bin Salman, it was marketed as a symbol of Saudi Arabia’s transition beyond oil dependence. The planned city—spanning an area roughly the size of Belgium—aimed to integrate cutting-edge sustainable technologies, innovation hubs, tourism, and smart living environments.
However, recent developments show that the megacity’s future is being reconsidered:
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Oil revenue remains central: Despite efforts to diversify, Saudi government revenue is still heavily dependent on crude sales. Softer oil prices in recent years have squeezed fiscal space and reduced surplus funds available for discretionary mega-projects.
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Project timelines extended: Internal reviews and cost pressures have pushed key elements like The Line into extended timelines, with some media reports suggesting major portions may not be realized for decades if at all.
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NEOM’s budget has ballooned: Original cost estimates for The Line and other components have risen sharply, contributing to scaling decisions.
Rather than outright cancellation, Saudi planners are adopting a phased approach that reevaluates where and how resources are deployed. Some segments of NEOM continue to progress, like the Green Hydrogen Project, which is nearing completion and is expected to become one of the world’s largest renewable-powered ammonia facilities.
The Line: From 170 Kilometers to Reality Check
Perhaps the most talked-about part of NEOM has been The Line, originally presented as a 170-kilometer linear city hosting up to 9 million residents without conventional cars, streets, or carbon emissions. Its mirror-like towers jutting from the Saudi desert were intended to redefine urban living.
But current reporting paints a different picture:
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Downscaling: Plans for The Line have been sharply scaled back. Where a decades-long build was once mooted, recent reporting suggests only a small fraction of the project may be actively pursued in the near term.
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Redesign ideas emerging: Some discussions within Saudi leadership point to repositioning The Line’s core area as an industrial zone or data center hub that can leverage renewable energy and coastal resources, aligning with broader goals such as AI infrastructure development.
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Cost and feasibility concerns: Experts argue that the original design faced persistent cost overruns, technical complexity, and skepticism over viability, making a full-scale build less practical in current conditions.
Rather than abandoning the concept entirely, authorities are examining how the existing groundwork can be adapted to more attainable objectives that still deliver strategic value.
Broader Vision 2030 Adjustments
The shift in NEOM is part of a wider rebalancing of Saudi Arabia’s Vision 2030 strategy, which seeks economic diversification beyond oil. Officials now appear determined to prioritize projects with clearer near-term returns and sustainable financing.
Key developments include:
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Focus on major global events: Saudi Arabia is now reinforcing its commitments to deliver infrastructure for key upcoming events, such as World Expo 2030 and the FIFA World Cup 2034, which it sees as catalysts for tourism and international engagement.
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Shift toward technology and high-value sectors: Investments are being steered more heavily toward artificial intelligence, gaming, logistics, and manufacturing—areas judged to have robust growth prospects and global demand.
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Other megaprojects under review: The reassessment is not limited to NEOM. For example, construction on projects like Mukaab, a massive cube skyscraper in Riyadh’s New Murabba district, has been put on hold as part of the broader strategic reset.
This recalibration reflects a pragmatic recognition of both domestic economic needs and global investment dynamics.
What It Means for Saudi Arabia and the World
The retooling of NEOM and related megaprojects represents a significant test of Saudi Arabia’s long-term planning and Vision 2030 execution. While the kingdom is far from abandoning its transformation goals, the scale and pace are adapting to current realities.
Economists note that:
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Large diversification goals must balance fiscal sustainability with transformative ambition.
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Prioritizing sectors with measurable global demand may deliver more stable long-term gains than ultra-high-risk urban experiments.
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How NEOM evolves may influence future urban mega-projects globally, offering lessons on managing scale, risk, and community impact.
For citizens, investors, and observers worldwide, NEOM’s evolution is a reminder that grand visions must be tempered by practical considerations and flexible frameworks if they are to become reality.
As Saudi Arabia charts a new path within Vision 2030, the world watches how innovation and pragmatism can coexist in reshaping the kingdom’s economic future. What unfolds in the deserts of the Red Sea region may well influence the next generation of global urban ambitions.
