Story
Saudi Arabia has effectively begun reshaping the priorities of the NEOM project, delaying some of its most ambitious developments in favor of investments seen as faster-returning and more closely tied to the real economy and infrastructure.
According to informed sources, further work on The Line — the twin-skyscraper linear city — has been postponed until at least after 2030, as the Public Investment Fund redirects spending toward projects such as ports, data centers and utility networks.
NEOM has also delayed plans for tourism destinations along the Red Sea coast, in addition to pausing new investments in the Trojena mountain project, which had been scheduled to host the 2029 Asian Winter Games.
Details
- NEOM is now focusing on the OXAGON industrial hub on the Red Sea, with plans to spend around $3 billion on its development.
- The port there has become a key part of Saudi Arabia’s efforts to establish alternative trade routes following shipping disruptions linked to the Strait of Hormuz.
- The kingdom is also investing in energy infrastructure and digital connectivity inside OXAGON to attract AI companies and data centers.
- The decisions followed a strategic review conducted by NEOM’s new CEO, Aiman Al-Mudaifer, after his appointment last year.
- NEOM has gradually reduced its population targets:
- Initial projections envisioned 1.5 million residents by 2030.
- The figure was later revised down to 300,000 two years ago.
- The current target now stands at around 100,000 residents.
What’s Next?
The latest shift suggests Saudi Arabia is increasingly prioritizing projects with direct economic returns and faster operational potential, instead of maintaining the same pace on symbolic mega-projects that require enormous investments and long-term timelines.
