Saudi Arabia’s ambitious NEOM project, a cornerstone of the Vision 2030 national development plan, has undergone a significant scale-down due to astronomical costs. The project, which initially aimed to construct an eco-friendly smart future city, advanced industrial complexes, and a mountain ski resort over a 26,500 square kilometer area, is now focusing on building stadiums to host global sports events over the next decade.

The NEOM project, announced in 2017, includes the construction of “The Line,” a linear city featuring two parallel skyscrapers 500 meters tall, spanning 170 kilometers in length and 200 meters in width. This futuristic city was envisioned to include aerial walkways, gardens, and stadiums, all powered by 100% renewable energy. However, the project’s chief executive, Nadmi Al-Nasr, who had overseen the NEOM project since 2018, resigned on October 12, leading to a strategic shift in the project’s priorities.

On Oct. 25, 2018, Nadmi Al-Nasr spoke at an investment conference in Riyadh, Saudi Arabia, highlighting the ambitious goals of the NEOM project. However, according to two sources, Al-Nasr’s sudden resignation is related to the failure to achieve these key objectives. NEOM announced that Aiman Mudaifer had been appointed as acting CEO, but did not comment on the reason for Al-Nasr’s departure.

Reuters reported on Nov. 13, citing three anonymous sources, that Saudi Arabia has revised the NEOM project plan to prioritize completing elements essential for hosting global sports events over the next 10 years. The current focus is on completing a 2.4-kilometer section and stadiums in preparation for Saudi Arabia’s virtually confirmed hosting of the 2034 World Cup. Plans beyond that will be reassessed.

One source explained, “The Line was revised in September and October to integrate stadiums, enhancing the project’s practicality by allowing the use of these stadiums during the World Cup.” Another priority is completing the mountain tourism complex “Trojena,” as Saudi Arabia has been selected to host the 2029 Asian Winter Games. This source mentioned that the NEOM project has been “downsized and divided into several phases.”

A consultant noted, “When the NEOM project was first proposed, the cost was $500 billion (approximately 702 trillion won), but the cost for The Line alone is expected to exceed $1 trillion, leading to a scale-down. Each project was operating separately, causing a lot of redundancy, so now everything is being meticulously reviewed.”

The Saudi government and NEOM did not respond to requests for comment. Another source indicated that other NEOM officials closely associated with Al-Nasr might also leave the company soon.

The NEOM project is a key initiative led by Crown Prince Mohammed bin Salman Al Saud as part of the Vision 2030 plan, which aims to diversify the economy away from oil dependency and develop public service sectors such as health, education, infrastructure, recreation, and tourism. The project’s initial estimated cost was $500 billion, but the financial strain has led to a reassessment of its phases and priorities.

Saudi Arabia’s focus on hosting major international sports events, including the 2029 Asian Winter Games and the likely hosting of the 2034 FIFA World Cup, necessitates the construction of sports infrastructure. This shift in priorities reflects the broader economic and geopolitical ambitions of the kingdom, as it seeks to enhance its global image and influence through high-profile projects and events.

The NEOM project’s emphasis on sustainability and renewable energy aligns with global trends towards eco-friendly urban development. However, the project’s success or failure could influence future initiatives in sustainable city planning. As the NEOM project undergoes these significant changes, its future developments will be closely watched by both supporters and critics of Saudi Arabia’s ambitious Vision 2030 plan.