Saudi Arabia Scales Back Ambitious Neom Megacity Plans

Saudi Arabia's flagship megacity project, Neom, is undergoing significant downsizing due to escalating costs and persistent delays. Originally envisioned by Crown Prince Mohammed bin Salman as a futuristic city featuring The Line—a linear city of skyscrapers stretching approximately 200 kilometers—the project is now expected to be "far smaller" than initially planned. This reevaluation comes as the kingdom grapples with economic pressures exacerbated by fluctuating oil prices and a history of substantial spending.

Saudi Arabia Reduces 100-Mile Desert Megacity Plan Amid Spending Concerns

Neom was intended to be a groundbreaking development, featuring a car-free environment, 100% renewable energy, and the capacity to house nine million residents. The Line was designed to be a linear city with mirrored skyscrapers, allowing residents to access all essential services within a five-minute walk. However, as of late 2024, the only completed section of Neom is the Sindalah yachting resort, which opened three years late and at three times its original budget.

Neom no more? Saudi Arabia reduces ambitious plans for 'The Line' and futuristic megacity

The decision to scale back Neom reflects broader economic challenges facing Saudi Arabia. The kingdom's economy, heavily reliant on oil, has been affected by a slump in oil prices, with Brent crude trading just above $60 a barrel. This financial strain has prompted the government to reassess its ambitious projects, including the indefinite postponement of the Asian Winter Games, originally scheduled for 2029 at the Trojena ski resort.

Neom no more? Saudi Arabia reduces ambitious plans for 'The Line' and futuristic megacity

As part of the downsizing, Neom is expected to pivot towards becoming a hub for data centers, aligning with Crown Prince Mohammed's vision of establishing Saudi Arabia as a leader in artificial intelligence. This shift indicates a move away from grand urban development towards more achievable technological goals. Reports suggest that the redesign of The Line may result in a project that is drastically shorter and less ambitious than originally conceived.

Saudi Arabia Reduces 100-Mile Desert Megacity Plan Amid Spending Concerns

Crown Prince Mohammed bin Salman has expressed his determination to achieve his transformation goals for the kingdom but acknowledged the need for adjustments. A Saudi official noted, "We rushed at 100 miles an hour. We are now running deficits. We need to reprioritize," highlighting the urgency for a strategic reevaluation of the project.

Saudi Arabia Reduces 100-Mile Desert Megacity Plan Amid Spending Concerns

Critics have raised concerns about the human cost associated with Neom, including reports of evictions and poor working conditions for migrant laborers involved in the construction. Human rights groups have documented serious injuries and fatalities among workers, prompting calls for accountability and ethical considerations in the project's execution.

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While some sources indicate that The Line may be completely scrapped, others suggest it could remain part of a scaled-back plan. The exact future of Neom remains uncertain, with ongoing discussions about its direction and feasibility.

The end of The Line? Saudi Arabia 'will scale back its 100-mile long megacity to something "far smaller"' amid spiralling costs and mounting delays

The ongoing review of Neom is expected to conclude in the coming months, with architects already working on redesigning The Line. The project's future will likely reflect a more conservative approach, focusing on sustainable economic impact and aligning with national objectives as Saudi Arabia prepares for significant international events, including the 2030 World Expo and the 2034 FIFA World Cup.

Saudi Arabia Reduces 100-Mile Desert Megacity Plan Amid Spending Concerns