Saudi Crown Prince Mohammed bin Salman is significantly downscaling Neom, his trillion-dollar megaproject launched in 2017. It follows years of budget overruns and construction delays, reports the Financial Times.
The centerpiece of Neom, a 170-kilometer linear city known as The Line, is being redesigned into a concept that leverages existing infrastructure.
Additionally, the kingdom announced that the Trojena ski resort will no longer host the 2029 Asian Winter Games as originally planned, signaling a major retreat from one of Neom’s ambitious goals.
The strategic pivot comes as Riyadh grapples with cash flow. It also needs to prioritize funding for the 2030 Expo international trade fair and the 2034 World Cup.
Rather than a futuristic desert metropolis, officials now envision Neom as an industrial hub, specifically targeting the AI and data center sectors.
The project’s CEO, Nadhmi al-Nasr, stepped down in 2024. Neom recently laid off 6,000 workers, according to Semafor.