Saudi Arabia Reduces 100-Mile Desert Megacity Plan Amid Spending Concerns
Saudi Arabia has decided to significantly reduce the scope of its ambitious Neom project, a futuristic megacity initially planned for completion by 2030. Concerns over costs and delays have prompted government officials to reevaluate the project’s feasibility. The megacity, particularly its centerpiece known as The Line, was envisioned as a sprawling series of 500-meter-tall skyscrapers extending approximately 200 kilometers through the desert.
Changes to The Line and Financial Implications
The Line was part of Crown Prince Mohammed bin Salman’s Vision 2030 initiative, aimed at diversifying the economy beyond oil by emphasizing real estate development. Reports indicate that approximately $50 billion has already been invested in the project as of November, but this is expected to decline as plans are revised. Originally projected to cost around $500 billion, the future size and scope of The Line are still uncertain.
- The Line was to house 9 million residents.
- The project aimed for zero roads, zero emissions, and 100% renewable energy.
- 95% of the land was designated to be preserved for nature.
In a recent investment forum held in Riyadh, a Saudi official admitted, “We rushed at 100 miles an hour. We are now running deficits. We need to reprioritize.” This acknowledgment points to the economic pressures facing the kingdom, exacerbated by fluctuating oil prices and a history of substantial spending.
Future Directions for Neom
As the project undergoes significant downsizing, there are discussions about refocusing Neom to become a hub for data centers. This shift aligns with Crown Prince Mohammed’s vision of establishing Saudi Arabia as a leader in the artificial intelligence sector.
Current Status of Neom
As of now, the only section of Neom that has opened is Sindalah, a yachting resort in the Red Sea. This part of the project celebrated its “grand opening” in October 2024, three years later than planned, and at three times its original budget. Despite a flashy launch that featured performances by celebrities such as Will Smith and Alicia Keys, reports suggest the Crown Prince was dissatisfied with the expenditures and subsequently dismissed Nadhmi al-Nasr, the project’s chief executive.
Overall, at this juncture, the long-term viability and transformation of the Neom project remain in contention. The future direction will likely involve a more conservative approach, reflecting the kingdom’s shifting economic landscape.
