The NEOM development has been scaled back as the project is set to be redesigned as a long-year internal review is completed. The kingdom has ordered a review into the construction of the project, which has already cost billions. Moreover, it aims to scale back widely derided plans such as The Line. NEOM was meant to include The Line, a vast scheme of skyscrapers standing half a kilometer tall that was set to span 200 kilometers.

According to the report, Saudi Crown Prince Mohammed bin Salman (MBS) now envisions a development that is “far smaller” than originally planned. The Crown Prince is the chair of the NEOM project. The move reflects growing acknowledgement within Riyadh of delays, cost overruns, and flaws in the project’s initial conception and execution. NEOM was launched in 2017 as part of the kingdom’s economic transformation plans. Moreover, it stretches along the Red Sea coast and covers an area roughly the size of Belgium.

Scope on the NEOM Development Once Scaled Back

Once scaled back, NEOM seeks to ensure more feasible and actualized projects can be implemented without cost overruns. People familiar with the review noted that The Line could be redesigned into a more modest project. The aim is to makes use of infrastructure already built. On the other hand, NEOM itself may pivot towards becoming a hub for data centers. This is fueled by Saudi Arabia’s push to position itself as a global player in artificial intelligence. The project also seeks to scale down to a manageable aspect without major setbacks.

The reassessment comes as Saudi Arabia seeks to manage tighter liquidity after years of heavy spending. Furthermore, 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. Several high-profile components of NEOM have already been affected. Riyadh announced over the weekend that the Trojena desert ski resort will no longer host the Asian Winter Games in 2029.

Other planned developments include Oxagon, a coastal industrial and logistics zone, which is also under review. People briefed on the review said the changes illustrated a growing willingness within the Saudi system to adapt plans to economic realities. It also shows that they would rather not persist with projects that are no longer viable at their original scale. The move also signals that NEOM’s downsizing could mark a broader shift in how Saudi Arabia approaches its ambitious development plans.

Project Factsheet

• Project: NEOM giga-development
  • Estimated Cost: $8.8 trillion
  • Location: Red Sea coast, Saudi Arabia
  • Launched: 2017
  • Project Sponsor: Saudi Crown Prince Mohammed bin Salman
• Current Status: Under internal review
  • Key Change: Overall scale significantly reduced
  • Reason: Cost overruns, delays, design feasibility issues
• The Line:
  – Originally planned as 200 km-long mirrored megastructure
  – Height: 500 meters
  – Also expected to be redesigned at a much smaller scale
• Strategic Shift:
  – Greater focus on feasible, partially built infrastructure
  – Potential pivot toward data center. Also to focus on AI-related developments
• Financial Context:
  – Tighter state liquidity
  – Prolonged high public spending
  – Weaker oil prices
  – Additional commitments: Expo 2030. Also FIFA World Cup 2034
• Affected Components:
  – Trojena ski resort no longer hosting 2029 Asian Winter Games
  – Furthermore, other sub-projects (including Oxagon) under reassessment
• Broader Implication:
  – Shift toward pragmatic execution over symbolic mega-scale projects
  – Also shows increased willingness to abandon or resize non-viable concepts