Reports today indicate a clear change of direction in the Saudi flagship project NEOM. Instead of the original story of a “City of the Future” on an almost unimaginable scale, Saudi Arabia is moving towards a more limited and phased planning.
Also, “The Line,” which was presented as a giant linear city stretching 170 km, is being downsized and redesigned: less of a project built all at once, more segments that can be executed, populated, and presented as results.
Meanwhile, the Asian Winter Games, which were supposed to take place in 2029 at the Trojena ski site in NEOM, have been postponed indefinitely, which is another indication that the project timelines are being extended and what was supposed to be a “showcase” is no longer certain to happen on the promised schedule.
The reason is not surprising. It is mainly a matter of money and risk management. Such a project burns huge capital over many years, and under pressure from declining revenues compared to construction costs, budget overruns, and competition for the same resources against other national projects and mega-events, the economic logic forces the Saudis to prioritize and focus on what brings benefit and not just feeds the ego.