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Saudi Arabia’s Neom megacity project is being significantly downscaled and redesigned after years of delays, according to a report in the Financial Times.
In an article on Sunday citing sources briefed on the matter, the FT reported that the chair of Neom now envisages something “far smaller” than what was first touted.
Neom was initially set to be “33 times the size of New City”, with the centrepiece being a 170km straight-line city.
“The Line” has now been radically scaled back and redesigned into a more “modest” project, a person briefed on the matter said.
“The Line will be a totally different concept. It will use the existing infrastructure in a totally different manner,” the person said.
Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newslettersNeom had also been set to include an eight-sided city that floats on water called “Oxagon”, and a ski resort known as “Trojena”.
Trojena had been set to host the 2029 Asian Winter Games, however, Riyadh announced on Saturday that the project was to be downsized and that it would no longer host the games as scheduled.
Sources told the FT that Neom would now reposition to focus on “industrial” sectors, including by becoming a hub for data centres as part of Crown Prince Mohammed bin Salman’s push to become a major player in artificial intelligence.
“Data centres need water cooling and this is right on the coast so it will have seawater cooling. So it will be a major centre for data centres,” one source said.
The scaling back of Neom’s ambitious goals is partly due to a tightening of the purse strings as a result of stagnating oil prices. Saudi Arabia is also refocusing its efforts on the hard deadlines of the 2030 Expo international trade fair, as well the 2034 World Cup.
Neom criticismNeom has long been criticised for being unrealistic and overambitious, as well as over human rights concerns.
The Saudi government has been accused of forcibly displacing members of the Howeitat tribe, who have lived for centuries in the Tabuk province in northwest Saudi Arabia, to make way for the city.
Saudi Arabia's Neom weighs deep layoffs and relocations: Report
Read More »Members of the tribe have been arrested or detained for resisting eviction, and an activist was shot dead in April 2020 shortly after making videos protesting against his eviction to make way for the city.
A year-long review into the project is expected to conclude by the end of the first quarter of 2026.
Neom told the FT it was “always looking at how to phase and prioritise our initiatives so that they align with national objectives and create long-term value”.
“As a development that’s meant to span generations, Neom is advancing projects in line with strategic priorities, market readiness and sustainable economic impact,” it added.
Neom is owned by the Public Investment Fund (PIF), Saudi Arabia’s $1 trillion sovereign wealth fund. Other large projects in the PIF’s portfolio are also set to be reviewed.