Scaling Down the Line: Saudi Arabia’s NEOM Project Adapts to Financial Constraints

Saudi Arabia has announced major adjustments to its NEOM project, a desert development initiative aimed at reducing the country’s dependence on oil exports. The NEOM megacity, which includes the floating port city of Oxagon and the Trojena ski resort, was originally planned to feature a 170 km long linear city called The Line. This city was designed to house 1.5 million people and feature two skyscrapers taller than the Empire State Building.

However, recent reports suggest that the construction plan for The Line has been scaled down significantly, with the city now set to be only 2.4 km long with a capacity of 300,000 residents. This downsizing is due to financial constraints, as the project’s estimated cost is around 1.5 trillion USD and funding primarily comes from the Public Investment Fund. With its cash reserves dwindling, the fund has prompted a more realistic approach to the project’s development.

Despite these changes, other aspects of the NEOM project are still progressing. The luxury island of Sindalah is set to open this year, and plans for the Trojena Winter Olympics in 2029 remain intact. Additionally, NEOM serves as a test site for new technologies, with investments in renewable energy sources such as solar and wind farms to produce green hydrogen.

Overall, the NEOM project is adapting to financial realities while still striving to create a sustainable and innovative future for Saudi Arabia.