Saudi Arabia Scales Back "The Line" in NEOM and Reprioritizes After Spending $50 Billion

Saudi Arabia has reportedly scaled back the original plan for the mega-project "The Line" within NEOM, the sprawling linear city aimed at building a 170-kilometer urban structure in the Saudi desert. This comes after spending exceeded $50 billion, while actual progress remains limited to just 2.4 kilometers, according to reports.

Data indicates that the Kingdom is reconsidering the project's scale and priorities amid mounting financial pressures, declining oil prices, and the Public Investment Fund's shift toward artificial intelligence initiatives and technology sectors offering faster returns.

"The Line" project was announced in 2021 as a futuristic city with no cars or conventional roads, designed to accommodate up to 9 million residents within a skyscraper structure 170 kilometers long and 500 meters high. However, previous reports indicated that ambitions were scaled back from 9 million residents to under 300,000 by 2030, according to reports.

This scaling back raises serious questions about the trajectory of Vision 2030 and the feasibility of giant economic transformation projects in light of oil market volatility and the need for clear returns on massive investments.

What do these terms mean?

NEOM: The futuristic Saudi city project announced in 2017, which includes several regions such as "The Line", "Trojena", and "Sindalah", financed primarily by the Public Investment Fund.

"The Line": A component within NEOM that envisions building a fully enclosed linear city inside a massive architectural structure stretching across the desert, without cars or traditional streets.

Public Investment Fund: The Saudi sovereign wealth fund, which is among the largest sovereign wealth funds in the world, responsible for managing and funding many Vision 2030 projects.