Saudi Arabia is preparing to significantly scale back and redesign NEOM, the flagship development chaired by Mohammed bin Salman, as a year-long internal review nears completion.
Officials briefed on the plans said the project is now envisaged as far smaller than originally conceived, reflecting budget overruns, construction delays, and tighter fiscal conditions amid subdued oil prices. NEOM spans Saudi Arabia’s Red Sea coast across an area roughly the size of Belgium.
Key developments
• The Line, the project’s central concept, is set to be radically downsized and redesigned.
• NEOM may pivot towards becoming a data centre and AI infrastructure hub, leveraging coastal seawater cooling and renewable energy.
• The Trojena ski resort has been downsized and will no longer host the 2029 Asian Winter Games.
• A broader review of megaprojects is under way under new chief executive Aiman al-Mudaifer.
NEOM, owned by the Public Investment Fund, said it is reprioritising projects to align with national objectives and long-term economic value as Riyadh recalibrates spending ahead of Expo 2030 and the 2034 football World Cup.
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