Saudi Arabia ‘scales back plans for 100-mile desert megacity’ after issues raised over billions spent | EUROtoday

Saudi Arabia will considerably downscale the development of the futuristic improvement Neom after issues had been raised by authorities officers over prices and repeated delays, in line with a report.

The flagship challenge, which had been scheduled for completion in 2030, contained plans for a metropolis named The Line consisting of an enormous stretch of 500-metre-tall skyscrapers within the desert.

However, building of the town was placed on maintain late final 12 months as Riyadh seemed for a brand new and less expensive strategy.

It was launched as a part of crown prince Mohammed bin Salman’s Vision 2030 plan, which sought to diversify the nation’s economic system away from oil and in direction of actual property.

But folks briefed on the matter say that the crown prince now envisages a “far smaller” challenge, the Financial Times reported, suggesting the ruler had recognised the failings within the expensive challenge. The newspaper estimated that round $50bn had been spent on the challenge as of November.

The Line, which was forecast to value $500bn, might be considerably downsized within the revised plans for the challenge – however it’s unclear precisely how a lot smaller it can change into, the FT mentioned.

Speaking at a flagship funding discussion board in Riyadh in November, one Saudi official mentioned the federal government had “spent too much”.

“We rushed at 100 miles an hour. We are now running deficits. We need to reprioritise.”

The metropolis was set to deal with 9 million folks and would function with out roads, automobiles or emissions. Officials mentioned it might run on 100 per cent renewable vitality, with 95 per cent of the land preserved for nature.

Prince Mohammed, the in truth ruler of Saudi Arabia, is reported to have grown more and more annoyed with delays to the challenge and a reevaluation of Neom is anticipated to set extra modest expectations for the town.

According to The Times, Neom may now shift its focus to changing into a hub for information centres as Prince Mohammed pushes the dominion to change into a worldwide chief within the synthetic intelligence business.

One supply near the plans informed the newspaper that it’s not clear whether or not The Line will stay a part of the plans as a smaller challenge or not.

The Saudi economic system is grappling with the influence of many years of giant spending together with a hunch in oil costs, which has compelled the Riyadh regime to rethink its spending plans.

Sindalah, a yachting resort within the Red Sea, is the one a part of Neom which has opened to this point. It held a “grand opening” get together in October 2024, three years after its scheduled opening date and costing 3 times what it was budgeted.

But Prince Mohammed was mentioned to be unimpressed by the costly challenge – which was launched by a celebration that includes Will Smith and Alicia Keys – and sacked Neom’s chief government Nadhmi al-Nasr because of this.

The Independent has contacted the Neom challenge for remark.