Saudi Arabia Scales Back Ambitions for 100-Mile Desert Megacity After Cost Review
Plans for the Linear city at NEOM are revised as authorities reassess spending, timelines and feasibility
Saudi Arabia has scaled back its ambitions for the planned 100-mile-long desert megacity known as The Line, following internal reviews that raised concerns over escalating costs and the pace of expenditure tied to the project.
The reassessment affects the scale and sequencing of development within NEOM, the flagship region at the heart of the kingdom’s Vision 2030 economic transformation programme.
The Line was originally unveiled as a car-free, zero-carbon city stretching approximately one hundred miles across north-west Saudi Arabia, designed to house up to nine million people within mirrored, parallel skyscrapers.
Early plans envisioned rapid construction over the coming decade, supported by substantial funding from the Public Investment Fund, Saudi Arabia’s sovereign wealth fund.
People familiar with the matter said revised plans now focus on delivering a significantly shorter initial section of The Line, with later phases dependent on funding availability, population growth and economic performance.
The changes come amid growing scrutiny of the multibillion-dollar price tag attached to NEOM projects, including The Line, the Oxagon industrial hub and the Trojena mountain resort.
Saudi officials have not cancelled The Line but have adjusted timelines and expectations to better align spending with fiscal priorities.
The Public Investment Fund has been reviewing capital allocation across its portfolio as the kingdom balances large-scale domestic development with international investments and preparations for major global events, including Expo 2030 in Riyadh and the 2034 FIFA World Cup.
Construction activity at NEOM continues, with work underway on infrastructure, housing and industrial facilities, although at a pace that reflects the revised scope.
The kingdom has stated that NEOM remains central to its strategy to diversify the economy away from oil, attract foreign investment and develop new sectors such as advanced manufacturing, tourism and technology.
The scaling back of the desert megacity reflects a broader recalibration of Vision 2030 projects, as Saudi Arabia adapts plans to economic conditions, construction capacity and long-term demand while maintaining its commitment to transformative development.
The reassessment affects the scale and sequencing of development within NEOM, the flagship region at the heart of the kingdom’s Vision 2030 economic transformation programme.
The Line was originally unveiled as a car-free, zero-carbon city stretching approximately one hundred miles across north-west Saudi Arabia, designed to house up to nine million people within mirrored, parallel skyscrapers.
Early plans envisioned rapid construction over the coming decade, supported by substantial funding from the Public Investment Fund, Saudi Arabia’s sovereign wealth fund.
People familiar with the matter said revised plans now focus on delivering a significantly shorter initial section of The Line, with later phases dependent on funding availability, population growth and economic performance.
The changes come amid growing scrutiny of the multibillion-dollar price tag attached to NEOM projects, including The Line, the Oxagon industrial hub and the Trojena mountain resort.
Saudi officials have not cancelled The Line but have adjusted timelines and expectations to better align spending with fiscal priorities.
The Public Investment Fund has been reviewing capital allocation across its portfolio as the kingdom balances large-scale domestic development with international investments and preparations for major global events, including Expo 2030 in Riyadh and the 2034 FIFA World Cup.
Construction activity at NEOM continues, with work underway on infrastructure, housing and industrial facilities, although at a pace that reflects the revised scope.
The kingdom has stated that NEOM remains central to its strategy to diversify the economy away from oil, attract foreign investment and develop new sectors such as advanced manufacturing, tourism and technology.
The scaling back of the desert megacity reflects a broader recalibration of Vision 2030 projects, as Saudi Arabia adapts plans to economic conditions, construction capacity and long-term demand while maintaining its commitment to transformative development.
