Saudi Arabia Halts Ambitious Neom Project Amid Financial Strain
Saudi Arabian Crown Prince’s $12 trillion, desert-city dream in tatters as megaproject halted

Image: New York Post
Saudi Arabia's Crown Prince Mohammed bin Salman has suspended work on the ambitious Neom project, including its centerpiece, The Line, due to soaring costs and shifting funding priorities. The project, initially projected to cost $12.3 trillion by 2080, has seen significant cutbacks as the kingdom reallocates resources to more critical infrastructure.
- 01The Line, a major component of the Neom project, has had its construction halted until at least 2030.
- 02Projected costs for The Line have ballooned to $12.3 trillion by 2080, prompting a strategic review of funding.
- 03Funding is now being redirected towards essential infrastructure like ports and AI data centers amid ongoing regional conflicts.
- 04The target population for Neom has been drastically reduced from 1.5 million to 100,000 by 2030.
- 05Construction on other related projects, such as the Trojena mountain resort and high-speed rail links, has also been suspended.
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The ambitious Neom project in Saudi Arabia, envisioned by Crown Prince Mohammed bin Salman as a futuristic urban utopia, is facing significant setbacks. Reports indicate that work on its flagship component, The Line, a 170km long smart city designed to accommodate 9 million residents, has been suspended until at least 2030. The project's costs have reportedly soared to $12.3 trillion by 2080, leading to a strategic review of funding priorities. The Saudi sovereign wealth fund is now redirecting resources towards more critical infrastructure, including ports and AI data centers, in light of ongoing regional tensions, particularly the Iran War. Additionally, the target population for Neom has been revised down from 1.5 million to 100,000 by 2030. Other projects associated with Neom, such as the Trojena mountain resort and the Neom Industrial City Connector, have also seen construction halted. This shift reflects broader economic challenges as Saudi Arabia grapples with high costs and insufficient foreign investment, despite recent increases in oil revenues.
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The suspension of the Neom project will affect local economies, particularly those reliant on construction and tourism.
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