Saudi Arabia will significantly scale back construction of the futuristic Neom development after raising concerns from government officials over costs and repeated delays, according to a report.
The main project, which was scheduled for completion in 2030, contained plans for a city called The Line consisting of a vast stretch of 500 meter skyscrapers in the desert.
However, construction of the city was halted late last year as Riyadh sought a new, less expensive approach.
The Line was planned to be a stretch of skyscrapers stretching around 200km (NEOM)
It was launched as part of crown prince Mohammed bin Salman’s Vision 2030 plan, which sought to diversify the country’s economy away from oil and towards real estate.
But people briefed on the matter say the crown prince now envisages a “much smaller” project, the Financial Times reported, suggesting that the ruler had recognized the shortcomings in the expensive project. The newspaper estimated that about $50 billion has been spent on the project since November.
The Line, which was predicted to cost $500 billion, will be significantly reduced in revised plans for the project – but it is not clear exactly how much smaller it will become, the FT he said.
Speaking at a major investment forum in Riyadh in November, one Saudi official said the government had “spent too much”.
“We went 100 miles an hour. Now we’re running deficits. We need to reprioritize.”
The city was to host 9 million people and would operate without roads, cars or emissions. Officials said it will run on 100 percent renewable energy, with 95 percent of the land preserved for nature.
Neom was originally planned to operate without roads, cars or emissions (NEOM)
Prince Mohammed, the in fact ruler of Saudi Arabia, is reported to have grown increasingly frustrated with delays in the project and a reassessment of Neom is expected to set more modest expectations for the city.
According to The Times, Neom can now shift its focus to becoming a hub for data centers as Prince Mohammed pushes the kingdom to become a global leader in the artificial intelligence industry.
A source close to the plans told the newspaper that it is not clear whether The Line will remain part of the plans as a smaller project or not.
Skyscrapers were envisioned with mirrored sides (NEOM)
The Saudi economy is grappling with the impact of decades of austerity coupled with a drop in oil prices, which has forced the Riyadh regime to rethink its spending plans.
Sindalah, a yacht resort in the Red Sea, is the only part of Neom that has been opened so far. It held a “grand opening” party in October 2024, three years behind its scheduled opening date and costing three times what was budgeted.
But Prince Mohammed was said to be unimpressed by the expensive project – which was launched by a party featuring Will Smith and Alicia Keys – and as a result sacked Neom’s chief executive, Nadhmi al-Nasr.
The Independent contact the Neom project for comments.