Saudi Arabia Halts $1 Trillion The Line Until After 2030 as Neom Shifts Funds
Updated
Updated · Dwell · Jun 7
Saudi Arabia Halts $1 Trillion The Line Until After 2030 as Neom Shifts Funds
3 articles · Updated · Dwell · Jun 7
Summary
The Line — Saudi Arabia’s flagship $1 trillion linear city — has been put on hold until after 2030 after an earlier 2023 scale-back.
Neom is redirecting spending toward infrastructure including ports and data centers, pulling money from marquee construction such as The Line, Red Sea tourism projects and the Trojena mountain resort.
The pause fits a broader retrenchment at Neom, which previously budgeted $16 billion for 2026-2030 project cancellations after budget deficits and weaker-than-expected foreign investment.
The shift underscores Saudi Arabia’s move from headline-grabbing megaprojects toward assets seen as more immediately useful to its wider economic buildout.
After spending billions to cancel projects, can Saudi Arabia regain global investor trust?
Did the war with Iran save one part of NEOM while killing the rest?
Is Saudi Arabia’s pivot from a mirrored city to an AI hub another fantasy?
NEOM’s $16 Billion Reset: The Cost, Consequences, and Strategic Pivot of Saudi Arabia’s Megaproject (2026)
Overview
As of June 2026, NEOM is undergoing a major strategic overhaul, marked by a comprehensive review, contract cancellations, and a re-evaluation of development timelines. This shift in focus for the ambitious Saudi megaproject comes with considerable financial implications, as seen in the termination of major contracts like the EUR 1.4 billion Connector rail deal. These actions reflect NEOM’s direct financial commitment to scaling back or rethinking specific project components, resulting in immediate costs. The accelerated review process, initiated after the appointment of a new chief executive, highlights the project's move toward a more measured and pragmatic development approach.