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Saudi Arabia's Neom Project Faces Major Downsizing Amid Costs

1/28/2026

36 5 Full Breakdown

Summary

Story summary

Saudi Arabia's Neom project, envisioned by Crown Prince Mohammed bin Salman, is set to be downsized due to escalating costs.
The Line, a 200-km stretch of skyscrapers, may pivot to focus on data centers.
As of November, about $50 billion had been spent, with total projected costs at $500 billion.
The Saudi government is reevaluating the project amid economic pressures and human rights criticisms.
Only the Sindalah resort has opened.

History

Historical Context

The 1973 oil crisis prompted Saudi Arabia to invest heavily in economic diversification, leading to the launch of Vision 2030 in 2016 under Crown Prince Mohammed bin Salman. The ambitious Neom project, initially projected to cost $500 billion, has faced significant setbacks, including rising costs and human rights criticisms, resulting in a reevaluation of its scope as of 2024.

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Story summary

Saudi Arabia's Neom project, envisioned by Crown Prince Mohammed bin Salman, is set to be downsized due to escalating costs.
The Line, a 200-km stretch of skyscrapers, may pivot to focus on data centers.
As of November, about $50 billion had been spent, with total projected costs at $500 billion.
The Saudi government is reevaluating the project amid economic pressures and human rights criticisms.
Only the Sindalah resort has opened.

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