NEOM at a Crossroads: Ambitious Saudi Megacity Faces Delays, Scaling Back, and Mounting Controversy
RIYADH, 26 January 2026 – Saudi Arabia’s $500 billion NEOM project, envisioned as a futuristic flagship of Crown Prince Mohammed bin Salman’s Vision 2030, is navigating a complex reality of scaled-back ambitions, significant delays, and intense international scrutiny. Centred on the revolutionary 170-kilometre linear city known as The Line, the megaproject symbolises the Kingdom’s bold attempt to diversify beyond oil but is now confronting formidable financial, logistical, and ethical challenges.
The Vision vs. The Reality
Launched in 2017, NEOM was promoted as a “cognitive city” and a global testbed for sustainable urban living. Its most audacious component, The Line, was unveiled in 2021: a mirrored, 500-metre-tall linear structure designed to house nine million people with no cars, streets, or carbon emissions, promising all amenities within a five-minute walk. However, as of late 2025, the gap between this vision and on-the-ground progress has become starkly apparent.
Independent reports and satellite imagery indicate that after nearly a decade, construction has advanced only on limited initial segments. The most visible work is concentrated on a 2.4-kilometre section known as the Hidden Marina, with significant excavation and piling activity reported. While NEOM’s official communications continue to champion the original 170-kilometre vision, multiple international media outlets and analysts report a substantial scaling back of immediate goals.
Key Facts & Revised Timelines
| Aspect | Status as of Early 2026 |
|---|---|
| Original Plan (The Line) | 170 km long, 9 million residents, completion by 2045. |
| Reported First Phase (2030) | Now targeting 2.4 km – 5 km, with a population of 300,000, down from an initial goal of 1.5 million. |
| Full Completion Estimate | Officially still 2045, but some reports and internal projections suggest a timeline extending to 2080 or beyond. |
| Current Construction | Major earthworks and foundation piling at the Hidden Marina site. Vertical construction is slated to begin by the end of 2025. |
| Estimated Cost | Ballooned from an initial $500 billion to reports of up to $8.8 trillion, over 25 times Saudi Arabia’s annual budget. |
| Leadership | CEO Nadhmi al-Nasr was replaced in late 2024 by Aimen Al-Mudaifer amid reports of mismanagement and an internal audit finding “evidence of deliberate manipulation.” |
Mounting Financial and Operational Headwinds
The project’s financial viability is under severe strain. In 2025, Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), which bankrolls NEOM, recorded an $8 billion write-down linked to the project. New contracts have reportedly dried up, and the project was conspicuously absent from the Kingdom’s 2026 pre-budget statement. An internal audit reported by the Wall Street Journal uncovered serious financial mismanagement, with consultants like McKinsey & Company earning fees upwards of $130 million in a single year.
Officials have acknowledged a “strategic pause” or “recalibration,” citing the need for cost optimisation and a sharper focus on other national priorities. This reassessment occurs against a backdrop of fluctuating oil prices, which directly impact the state’s ability to fund such colossal ventures.
Human Rights and Environmental Controversies
NEOM’s development has been heavily criticised for grave human rights abuses and environmental concerns. Human rights organisations, including ALQST and the European Centre for Democracy and Human Rights (ECDHR), have documented the forced displacement of the indigenous Huwaitat tribe to clear land for construction.
Activists resisting eviction, such as Abdul Rahim al-Huwaiti, have been killed, and others sentenced to death. Furthermore, the 2023 death of Pakistani migrant worker Abdul Wali Skandar Khan on a NEOM site, and the alleged failure to properly investigate or compensate his family, has spotlighted the risks of labour exploitation for the hundreds of thousands of migrant workers building the city.
Environmentally, experts contest NEOM’s “green” credentials. The carbon footprint for producing the required steel, glass, and concrete for The Line alone is estimated at 1.8 gigatonnes of CO₂. The project’s vast resource consumption and impact on a pristine desert and coastal ecosystem stand in stark contrast to its marketed image as a sustainable utopia.
Frequently Asked Questions
What is the current status of NEOM’s construction?
As of January 2026, construction is focused on foundational work for the first phase of The Line, particularly the Hidden Marina segment. Massive excavation and piling are ongoing, but no vertical structures for the main linear city have been erected. The luxury island resort Sindalah held an opening party in 2024 but reportedly remains closed to the public.
Has The Line been scaled down?
While Saudi officials publicly deny any reduction in scale, numerous reports from Bloomberg, the Wall Street Journal, and Reuters indicate that the initial 2030 targets have been significantly reduced. The first phase is now widely reported to be only 2.4 kilometres long, housing 300,000 people, rather than the original plan for 1.5 million residents across a much larger section.
What are the main criticisms of the NEOM project?
The project faces three major critiques: 1) Financial & Logistical Feasibility: Exploding costs, delays, and questions about the technology required. 2) Human Rights Abuses: Forced displacement of local tribes, mistreatment of migrant labour, and a repressive management culture. 3) Environmental Impact: A massive carbon footprint and ecosystem disruption contradicting its sustainability branding.
Is NEOM part of Saudi Vision 2030?
Yes, it is a centrepiece of Crown Prince Mohammed bin Salman’s Vision 2030, which aims to diversify the Saudi economy away from oil dependence. However, officials have recently stated that NEOM is a “generational” project not strictly bound by the 2030 deadline, allowing for its extended and recalibrated timeline.