Saudi Arabia is scaling back its plans for a 100-mile desert megacity after mounting concerns over the billions already spent

The Saudi Arabia desert megacity was once hailed as one of the most groundbreaking urban development projects in the world. Known as The Line, this bold vision promised to reshape city life by stretching 100 miles through the desert without cars, emissions, or traditional infrastructure. It was futuristic, daring, and made headlines globally. But now, that dream is being scaled back.

Yes, you read that right. The Saudi Arabia desert megacity is hitting the brakes. After pouring billions into the project, leaders are reassessing their goals. What began as an ambitious cornerstone of Vision 2030 is being reimagined due to cost concerns, missed timelines, and changing priorities. Let us break down what is changing and what this means for the future of Neom and beyond.

Saudi Arabia desert megacity under major revision

Saudi Arabia’s leadership is quietly adjusting their original vision of the desert megacity. The Line, initially planned as a 100-mile mirrored corridor housing 9 million residents, is no longer expected to stretch uninterrupted across the desert. With more than 50 billion dollars already spent and economic pressures mounting, the project is being reevaluated to focus on more financially sustainable elements. Rather than abandoning the idea, the government is choosing a more incremental strategy, prioritizing parts of the megacity that can deliver value sooner.

Now, planners are exploring a more practical setup with tech hubs, AI centers, and data-driven infrastructure as the new foundation of Neom. It is a shift from spectacle to sustainability. This new approach may not make global headlines the way The Line did, but it could lead to more tangible results in the long run.

Overview Table: Key Insights into the Saudi Arabia desert megacity Shift

Key Element	Updated Status
Original Length of The Line	100 miles (approximately 170 km)
New Proposed Plan	Smaller urban sections or district-style configurations
Initial Population Goal	9 million residents
Revised Focus	Phased development with a tech and data infrastructure push
Project Launch Year	2017
Estimated Original Budget	500 billion US dollars
Current Spending Reported	Over 50 billion US dollars spent as of late 2023
Completion Goal	2030, now facing extended timelines
Initial Purpose	Tourism, luxury real estate, and innovation hub
Current Strategy	Emphasis on AI, data centers, and energy-efficient builds

Vision 2030 meets a reality check

Neom was launched in 2017 as the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030. This vision aimed to diversify the country’s oil-based economy by promoting tech, tourism, and futuristic infrastructure. The Line was its most dramatic promise: a massive, mirrored city powered by renewable energy, without cars or streets.

But as construction moved forward, the limitations of turning ideas into reality became clear. By late 2023, insiders began to share that the project was running into serious financial strain. Instead of moving forward at full speed, Saudi Arabia is now shifting to a slower and more calculated approach, focusing on segments of the city that are likely to generate returns sooner and attract investor confidence.

‘We spent too much’: a costly vision trimmed down

What was once billed as a 500 billion dollar megacity is now being restructured after 50 billion dollars have already been spent. Officials acknowledge that the project moved too fast without firm strategies for execution and cost control. Construction on some of the most ambitious areas of The Line has been paused. Instead of completing an uninterrupted 100-mile corridor, engineers are now developing smaller segments that could evolve over time.

Contractors and planners have reportedly been told to reprioritize what gets built first. The focus is now on developing parts of Neom that can begin generating income through tourism or tech services. This kind of strategic pivot may help avoid further overspending and restore investor confidence in the megaproject.

From utopian city to data and AI powerhouse?

Despite the scale-back, the Saudi Arabia desert megacity is not being scrapped. Instead, the government is recalibrating the project to focus on sectors that align with long-term global trends. With AI, cloud computing, and data management becoming increasingly essential, Saudi Arabia now sees Neom as a future tech hub for the region.

Desert space offers room for large-scale data centers, while the country’s access to renewable energy and subsea cables makes it strategically placed to connect with Europe, Asia, and Africa. Shifting to a tech-first model not only reduces the immediate financial pressure but also places Saudi Arabia in a competitive position in the digital economy.

Neom’s grand promises collide with delays

So far, only one part of Neom has opened to the public: Sindalah, a luxury resort on a Red Sea island. While visually impressive, the resort opened three years behind schedule and at nearly triple its planned budget. The extravagant launch event in 2024, featuring celebrities and international attention, did little to silence critics.

This delay and overspending added to the pressure on the project. Sources say that the Saudi leadership was frustrated with missed milestones and the lack of progress, which led to the dismissal of Neom’s former CEO. As a result, timelines for other parts of the project have been softened, and future plans are now being rolled out in phases, not all at once.

Oil prices, deficits and political risk

The scaling back of the Saudi Arabia desert megacity comes at a time when the kingdom is facing budget deficits due to falling oil prices and years of high public spending. Since megaprojects like Neom rely heavily on state funding and foreign investment, any drop in oil revenue or investor interest can disrupt the entire strategy.

International investors are intrigued but cautious. The project’s complexity, regional risks, and lack of transparency around governance have created hesitation. For Saudi Arabia, this means being more strategic, balancing vision with practical execution, and ensuring the country remains attractive for global partnerships.

What downsizing means for future megacities

The case of Neom shows what happens when ambition meets real-world limits. Around the world, countries are watching closely. Similar projects in Egypt, India, and parts of Africa also promise futuristic cities, but the lesson from Saudi Arabia is clear: bold plans need sustainable budgets and flexible strategies.

While the 100-mile corridor may not be built as originally planned, the core ideas behind it still matter. Concepts like walkable urban zones, energy-efficient design, and tech-focused growth are becoming the new norm. Neom’s shift could influence how future smart cities are designed and funded.

Key ideas behind Neom’s original design

At its heart, Neom’s vision embraced new urban concepts that remain relevant even if the scale changes. One major principle was the “15-minute city,” where all essential services are within walking distance. By removing cars and building densely, the aim was to reduce pollution and traffic.

Another idea was transit-oriented development, where homes and workplaces are built around high-speed public transport systems. While these ideas are not new, Neom aimed to push them further than any other city. Even with downsizing, some of these principles will likely shape future Saudi projects.

Risks and trade-offs that remain

Scaling back the Saudi Arabia desert megacity reduces some financial risks, but others still remain. Reputation is one. The country made very public promises, and pulling back could affect how Saudi Arabia is seen as a global investment destination.

Then there is the risk of execution. Shifting the project toward tech and AI is not just about infrastructure. It also requires talent, regulation, and a supportive ecosystem. Social risks also exist. Developing large-scale areas could impact communities, especially when land use is changed rapidly.

Turning billions in early investment into long-term gains will require disciplined planning and smarter choices in the coming years.

FAQs