Saudi Arabia Asks Consultants To Reassess Feasibility of 'The Line' Megaproject

Saudi Arabia has asked consultants to reassess the feasibility of The Line, its ambitious 170km linear city project and centerpiece of the Neom initiative, as rising costs and falling oil prices force the kingdom to scale back its megaprojects. Middle East Eye reports: In April, The Financial Times reported that the CEO of Neom had launched a 'comprehensive review' of the kingdom's megaproject. Neom, along with luxury Red Sea hotels and a ski resort, is the flagship project of Crown Prince Mohammed bin Salman's Vision 2030 plan to transform the kingdom's economy and reduce its dependence on oil revenue. Bloomberg reported in 2024 that Saudi Arabia was cutting back plans for The Line. Instead of 1.5 million people living there by 2030, Saudi officials were said to anticipate fewer than 300,000 residents. Meanwhile, only 2.4km of the city is expected to be completed by 2030.

In April, Goldman Sachs painted a bleak picture for Saudi Arabia's projects in a note to clients, projecting 'pretty significant' budget deficits and more scaling back of megaprojects. Neom has already faced internal challenges. Nadhmi al-Nasr, who managed Neom's construction from 2018 to 2024, departed from his post in November. Nasr earned a chilling reputation managing Neom. He bragged that he put everyone to work 'like a slave,' adding, 'When they drop down dead, I celebrate. That's how I do my projects.' Two other foreign executives also left Neom at the end of 2024, according to The Wall Street Journal.

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