Saudi Arabia’s flagship NEOM development is set to be significantly scaled back and redesigned as a year-long internal review nears completion, the Financial Times reported, citing people briefed on the matter.
According to the report, Saudi Crown Prince Mohammed bin Salman (MBS), who chairs the NEOM project, now envisions a development that is “far smaller” than originally planned, reflecting growing acknowledgement within Riyadh of delays, cost overruns, and flaws in the project’s initial conception and execution.
NEOM, launched in 2017 as part of the kingdom’s economic transformation plans, stretches along the Red Sea coast and covers an area roughly the size of Belgium. Its most ambitious component, The Line, a proposed 170-kilometre linear city, is expected to be radically scaled back and reimagined.
People familiar with the review told the FT that The Line could be redesigned into a more modest project that makes use of infrastructure already built, while NEOM itself may pivot towards becoming a hub for data centres as Saudi Arabia pushes to position itself as a global player in artificial intelligence.
The reassessment comes as Saudi Arabia seeks to manage tighter liquidity after years of heavy spending, with oil prices remaining subdued. Riyadh is also facing major financial commitments linked to preparations for hosting Expo 2030 and the football World Cup in 2034. More
