NEOM Project Saudi Arabia quietly scales back after burning through $200 billion in desert dreams

Ahmed scrolls through his WhatsApp messages as his taxi crawls through Riyadh traffic. His cousin in London sent him another article about The Line – Saudi Arabia’s futuristic city project that was supposed to stretch 100 miles through the desert. “They’re cutting it down again,” the message reads, followed by a laughing emoji.

Ahmed doesn’t laugh. He’s an architect who spent three years of his life designing sustainable housing modules for what everyone called “the project of the century.” His savings account still shows the direct deposits from NEOM Company, but his latest contract got quietly “postponed” six months ago.

Tonight, like thousands of other professionals across Saudi Arabia, he’s wondering whether to feel relieved or heartbroken about the news that keeps trickling out: the NEOM project Saudi Arabia promised to the world is shrinking faster than a desert mirage at sunset.

The reality behind the mirrored walls

When Crown Prince Mohammed bin Salman first unveiled The Line in 2021, it felt like science fiction had crashed into the desert. Picture this: a 170-kilometer linear city stretching across northwest Saudi Arabia, enclosed by two parallel mirrored walls reaching 500 meters into the sky. No roads, no cars – just nine million people living in vertical neighborhoods connected by high-speed rail.

The promotional videos looked like something from a Marvel movie. Flying cars, holographic displays, artificial intelligence managing everything from traffic flow to air conditioning. The price tag? A cool $500 billion, funded by Saudi Arabia’s Public Investment Fund and international investors who bought into the vision.

“When we first saw those renders, half of us thought it was brilliant and half thought it was insane,” says Dr. Sarah Mitchell, an urban planning expert who consulted on several Middle Eastern megaprojects. “The engineering challenges alone would make most countries think twice.”

But thinking twice isn’t really the Saudi way when it comes to Vision 2030 – the kingdom’s plan to diversify away from oil dependency. The NEOM project Saudi Arabia announced was supposed to be the crown jewel of this transformation, a testament to what unlimited funding and unlimited ambition could achieve.

Except unlimited funding, as it turns out, has limits.

What’s actually happening on the ground

Recent reports suggest Saudi officials are quietly scaling back their timeline and scope. Instead of the full 170-kilometer city by 2030, sources close to the project indicate they’re focusing on a much smaller initial phase – possibly as little as 2.4 kilometers.

Here’s what we know about the current status:

Original Plan (2021) Current Reality (2024)
170 km linear city 2.4 km initial phase
9 million residents by 2030 300,000 residents (revised target)
$500 billion total investment $100 billion for first phase
500-meter high walls Same height planned for smaller section

The scaled-back approach reflects several harsh realities that even Saudi Arabia’s deep pockets couldn’t solve overnight:

  • Construction costs spiraling beyond initial estimates
  • Technical challenges with the mirrored wall design
  • Difficulty attracting international residents to an untested city concept
  • Environmental concerns about desert construction impact
  • Competing priorities within Saudi Arabia’s broader economic transformation

“The engineering physics alone should have been a red flag,” explains James Rodriguez, a construction engineer who worked on Dubai’s tallest buildings. “Building a 500-meter continuous wall for 170 kilometers? That’s like building 85 Empire State Buildings lying on their side, all connected, in the middle of a desert.”

Winners and losers in the grand vision’s retreat

The scaling back creates an odd situation where everyone might be right to feel conflicted. On one hand, critics who called The Line a vanity project are watching their predictions come true. On the other hand, supporters argue that even a smaller NEOM could still revolutionize urban planning if executed properly.

For ordinary Saudis, the mixed feelings are personal. Thousands found work on the project – from construction crews to engineers to marketing specialists. Many international professionals relocated their families to Saudi Arabia specifically for NEOM-related jobs.

Maria Gonzalez, a Spanish urban designer who moved to Riyadh in 2022, captures the sentiment: “I came here believing we were building the future. Now I’m not sure if we’re witnessing the death of ambition or just… reality setting in.”

The broader implications stretch beyond individual careers. Saudi Arabia’s Vision 2030 depends heavily on megaprojects like NEOM to create jobs, attract foreign investment, and establish the kingdom as a global destination beyond oil exports.

A scaled-back NEOM project Saudi Arabia delivers might still accomplish some of these goals, but it raises questions about the credibility of other announced megaprojects. If The Line proves too ambitious, what does that mean for plans like the Red Sea Project or the floating city of OXAGON?

What comes next for the desert city

Despite the scaling back, construction continues on the first phase of The Line. Satellite images show significant infrastructure development around the NEOM Bay area, including the airport, roads, and early residential units.

The Saudi government maintains that the full vision remains intact – just spread over a longer timeline. Officials speak of “phased delivery” rather than permanent downsizing, suggesting that success with the initial 2.4 kilometers could unlock funding and support for expansion.

“Rome wasn’t built in a day, and neither will NEOM,” says a Saudi official who requested anonymity. “But what we’re building will still change how people think about cities.”

The real test may come in the next two years. If Saudi Arabia can demonstrate that people actually want to live in a linear city – even a short one – the concept might have legs. If the first residents struggle with the unique challenges of mirror-walled living, the entire project could quietly fade into a cautionary tale about ambition exceeding practicality.

For now, the cranes keep working under the desert stars, building something smaller than promised but still unlike anything else on Earth. Whether that represents failure or pragmatic success may depend entirely on who’s asking – and what they expected from a mirage in the first place.

FAQs

What is NEOM and The Line project?
NEOM is a planned smart city in Saudi Arabia, with The Line being its most famous component – originally designed as a 170-kilometer linear city enclosed by mirrored walls.

Why is Saudi Arabia scaling back The Line?
Construction costs exceeded projections, engineering challenges proved more complex than anticipated, and attracting residents to the untested concept became difficult.

How much has Saudi Arabia spent on NEOM so far?
While exact figures aren’t public, estimates suggest tens of billions have been invested in infrastructure, with the original budget set at $500 billion over multiple decades.

Will The Line still be built eventually?
Saudi officials maintain the full vision remains the long-term goal, but they’re now focusing on a smaller initial phase that could expand if successful.

What does this mean for Saudi Arabia’s Vision 2030?
The scaling back raises questions about other megaprojects but doesn’t necessarily derail the broader economic diversification plan, which includes multiple initiatives beyond NEOM.

Can people visit NEOM now?
Limited areas are accessible for business visitors and potential investors, but the residential and tourist components are still under construction in the initial phase area.

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