Saudi Arabia ‘scales back plans for 100-mile desert megacity’ after concerns raised over billions spent

A Saudi official said last year that the government had ‘spent too much’ on its flagship project

Saudi Arabia will significantly downscale the construction of the futuristic development Neom after concerns were raised by government officials over costs and repeated delays, according to a report.

The flagship project, which had been scheduled for completion in 2030, contained plans for a city named The Line consisting of a vast stretch of 500-metre-tall skyscrapers in the desert.

However, construction of the city was put on hold late last year as Riyadh looked for a new and less costly approach.

The Line was planned to be a stretch of skyscrapers stretching around 200km (NEOM)

It was launched as part of crown prince Mohammed bin Salman’s Vision 2030 plan, which sought to diversify the country’s economy away from oil and towards real estate.

But people briefed on the matter say that the crown prince now envisages a “far smaller” project, the Financial Times reported, suggesting the ruler had recognised the failings in the costly project. The newspaper estimated that around $50bn had been spent on the project as of November.

The Line, which was forecast to cost $500bn, will be significantly downsized in the revised plans for the project – but it is unclear exactly how much smaller it will become, the FT said.

Speaking at a flagship investment forum in Riyadh in November, one Saudi official said the government had “spent too much”.

“We rushed at 100 miles an hour. We are now running deficits. We need to reprioritise.”

Neom was originally planned to operate without roads, cars or emissions (NEOM)

The city was set to house 9 million people and would operate without roads, cars or emissions. Officials said it would run on 100 per cent renewable energy, with 95 per cent of the land preserved for nature.

Prince Mohammed, the de facto ruler of Saudi Arabia, is reported to have grown increasingly frustrated with delays to the project and a reevaluation of Neom is expected to set more modest expectations for the city.

According to The Times, Neom could now shift its focus to becoming a hub for data centres as Prince Mohammed pushes the kingdom to become a global leader in the artificial intelligence industry.

The skyscrapers were envisaged with mirrored sides (NEOM)

One source close to the plans told the newspaper that it is not clear whether The Line will remain part of the plans as a smaller project or not.

The Saudi economy is grappling with the impact of decades of huge spending along with a slump in oil prices, which has forced the Riyadh regime to rethink its spending plans.

Sindalah, a yachting resort in the Red Sea, is the only part of Neom which has opened so far. It held a “grand opening” party in October 2024, three years after its scheduled opening date and costing three times what it was budgeted.

But Prince Mohammed was said to be unimpressed by the expensive project – which was launched by a party featuring Will Smith and Alicia Keys – and sacked Neom’s chief executive Nadhmi al-Nasr as a result.

The Independent has contacted the Neom project for comment.