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Ambitious plans for a hundred-mile long megacity in Saudi Arabia, a key part of the kingdom’s $2 trillion redevelopment project, have been put on hold so they can be scaled back. The Line was meant to be one of the Arab country’s so-called giga projects, designed to diversify the economy away from oil through real estate as part of Crown Prince Mohammed bin Salman’s Vision 2030 plan. Now, however, the Riyadh regime appears to have shifted priorities. “We spent too much,” one Saudi official said at a flagship investment forum in the capital last week, per The Times. “We rushed at 100 miles an hour. We are now running deficits. We need to reprioritise.” The Line was envisioned as a futuristic linear city in desert by the Red Sea, part of Saudi Arabia’s Neom city project. Set to house nine million people, over a quarter of Saudi Arabia’s population, it was envisioned to redefine what cities of the future might look like. Without roads, cars or emissions, it was set to run on 100 per cent renewable energy with 95 per cent of the land preserved for nature. The city would tower 500 metres above sea level, at 200 metres wide and 170 kilometres long, but over the years it has faced massive delays. According to The Times, the downsized scheme will hold a fraction of the planned population with 300,000 residents in a city only a few miles long. The Line was one of several Neom schemes for futuristic cities and industrial plans across the Tabuk province, powered with renewable energy sources. Saudi Arabia has faced criticism for forcibly moving thousands of people out of the area to make way for it. The crown prince’s key advisor, American-born executive Jerry Inzerillo, told The Times that the country was “making a course correction” as the kingdom felt the financial pinch of an oil bust. When Vision 2030 was unveiled in 2016, oil prices were averaging $100 a barrel; they have not reached triple digits since 2022 and oil continues to account for half of the economy. “It forces you to be more conservative,” said Inzerillo, who is leading the $63 billion Diriyah city-within-a-city in Riyadh, which is expected to be completed by 2030. The Independent has contacted Neom and the PIF for comment. A source told Reuters last week the country was choosing to refocus its funds after gigaproject delays, instead leaning into investment in artificial intelligence and data centres powered by hydrocarbon. PIF Governor Yasir Al-Rumayyan, said at the summit last week the next strategy would be announced “very soon”. Reuters reported that the repositioning comes as pressure mounts on PIF and its portfolio companies to generate better returns in the near term. The kingdom has also taken on a number of new projects with hard deadlines, such as the 2034 men’s football World Cup which is set to have 11 stadiums. What is the status of the Neom projects? The Line - Plans for the ambitious megacity have been halted again. Saudi Arabia originally said in 2021 that the full 100-mile city would be completed by 2045.Oxagon - A floating industrial complex, imagined in the shape of an octagon and located around 16 miles north of the town Duba, has not been built yet but progress has been made. The first phase is scheduled for 2027.Trojena - The mountain tourism destination, situated on the mountain of Jebel al Lawz at altitudes up to 2,600 metres above sea level, was intended to be the first major outdoor skiing destination in the Arabian Peninsula. It was due to host the Arabian Winter Games in 2029 but has now not expected to be ready until 2032.Sindalah - The luxury island destination is the only part of Neom that is officially finished, after it held a “grand opening” party in October last year, three years after its scheduled opening date and costing three times what it was budget. Yet as of August this year, the resort was still not open to the public.Neom announced 12 new projects in 2023 which have not been built yet. These include Leyja - a natural valley carved between 400-meter high mountains, with three boutique hotels, Epicon - a resort entailing two jagged skyscrapers, Siranna - envisioned as an ultra-luxurious destination, home to a 65-key hotel and 35 exclusive residences formed from a series of hexagonal pillars, and Utamo - a futuristic theatre and immersive arts and entertainment venue.
