Saudi Arabia's £6.8tn Neom Mega-City Project Faces Major Review Amid Delays
The future of Saudi Arabia's colossal £6.8 trillion Neom mega-city project hangs in the balance as the kingdom's government initiates a comprehensive review. This ambitious desert development, which includes the visionary 125-mile mirrored metropolis known as The Line, is grappling with significant construction setbacks and budgetary pressures that threaten to dramatically scale back its original scope.
Uncertain Future for The Line Development
At the heart of the Neom project lies The Line, a revolutionary urban concept featuring half-kilometre-high skyscrapers stretching across 125 miles of Saudi Arabian desert. Designed to accommodate nine million residents with all facilities within a five-minute walk, this mirror-clad development was intended to redefine urban living through rapid transit systems and sustainable design principles.
However, according to reports from The Sunday Times, Crown Prince Mohammed bin Salman has grown increasingly frustrated with persistent delays affecting multiple ventures within the Neom scheme. An insider familiar with the government review revealed that The Line's fate remains uncertain, with possibilities ranging from complete cancellation to substantial downsizing of the original vision.
Budget Concerns and Strategic Shifts
The Neom project, with an allocated budget of approximately £365 billion and a 2030 completion deadline, was conceived as a cornerstone of Saudi Arabia's Vision 2030 initiative to diversify the economy away from oil dependency. Yet declining oil revenues have forced the Saudi Arabian Public Investment Fund to reconsider its expenditure priorities across multiple ambitious developments.
Currently, the only operational component of Neom is the yachting destination Sindalah, which has reportedly underperformed expectations. Meanwhile, other elements like Trojena - a mountainous retreat featuring Saudi Arabia's first outdoor ski slopes - have already missed construction deadlines, including preparations for the 2029 Asian Winter Games.
Potential Pivot Toward Technology Infrastructure
As Saudi Arabia and neighbouring United Arab Emirates position themselves as global technology powerhouses, there are indications that Neom might shift focus toward artificial intelligence data centres rather than the sprawling urban development originally envisaged. The Public Investment Fund recently unveiled HUMAIN, a venture dedicated to developing comprehensive AI and data centre infrastructure.
This potential strategic realignment comes amid broader social transformations within the kingdom, including the dissolution of religious police and granting women driving rights - changes that have earned Crown Prince Mohammed praise from younger Saudis despite ongoing scrutiny of his administration's approach to dissent.
Broader Implications for Urban Development
The original Neom vision extended beyond The Line to include a 6,500 square kilometre nature reserve alongside the Trojena mountain retreat, representing one of the most ambitious urban planning initiatives in modern history. Proponents argued the development could alleviate pressure on overcrowded cities like Riyadh, which struggles to accommodate Saudi Arabia's 35 million inhabitants.
As the government review progresses, the ultimate fate of this £6.8tn desert transformation will reveal much about Saudi Arabia's capacity to execute visionary projects while navigating economic constraints and evolving strategic priorities in an increasingly competitive global landscape.
