Saudi Arabia shifts Neom plans to cut costs

Saudi Arabia's ambitious Neom project, a key element of the kingdom's Vision 2030 to diversify its economy, is undergoing significant changes.

Saudi Arabia has revised its plans for the ambitious Neom mega-city project in order to cut costs and prioritize infrastructure for international sporting events. The country will now concentrate on completing a 1.5-mile section of the development, which will feature a stadium intended to host the 2034 World Cup, Caliber.Az reports per foreign media.

The decision to shift focus was made in September and October, with the World Cup stadium now integrated into the plan, a source told Reuters. Another key priority is finishing a mountain resort set to host the Asian Winter Games in 2029. The report follows news that Neom's long-serving CEO unexpectedly departed the project, without explanation, earlier this week. There are also reports that other officials close to the former CEO could leave soon.

This month, Neom hosted a professional triathlon and a men's 3x3 basketball event. The $500 billion project was initially designed to accommodate 9 million people, roughly the population of New York City, and includes several ambitious developments, such as The Line—a 106-mile long city structure, entirely mirrored, that cuts across the desert landscape. Neom did not immediately respond to requests for comment. Neom was originally designed to accommodate approximately 1.5 million people by 2030, but that target is believed to have been significantly reduced due to escalating costs, with project estimates now reaching as high as $1.5 trillion. 

The city is a central element of Saudi Arabia's Vision 2030 initiative, which aims to reduce the kingdom’s dependency on oil by fostering new industries and boosting tourism. However, Neom has faced multiple challenges since its inception, including financial setbacks and construction delays. Last month, a Neom official claimed that Saudi Arabia is consuming one-fifth of the world’s steel production for the project, although Business Insider could not independently verify this figure. 

The project has also attracted scrutiny from governments and human rights organisations over alleged abuses, including the treatment of migrant workers involved in construction. In July, Saudi Arabia dismissed accusations that three men were sentenced to death for protesting evictions related to Neom. The government stated that the men had links to two terrorist groups.

By Naila Huseynova