Saudi Arabian authorities have decided to scale back and redesign the NEOM megaproject due to delays and rising costs. The project, presented as the country's future urban concept, may significantly deviate from its initially planned ambitious goals.
According to reports citing the Financial Times, the scope of "The Line," envisioned as a futuristic linear city, will be significantly reduced and its core concept re-evaluated. Among the discussed options is the possibility of NEOM transforming into a data center and artificial intelligence hub.
The primary reasons for the decision include financial pressures, falling oil prices, and shifting state priorities. Preparations for major international events such as the Expo 2030 exhibition and the 2034 World Cup are among the factors necessitating the restructuring of the NEOM project.
According to the source, the government is seeking to redefine the long-term perspective of the project to ensure more efficient resource allocation and reduce economic risks. These changes are expected to directly impact NEOM's future development model and Saudi Arabia's technological strategy.