Due to growing financial constraints and doubts about its viability, Saudi Arabia is reevaluating its $500 billion megaproject, The Line, which is a component of the futuristic NEOM city. Concerns have been raised regarding the future of one of Crown Prince Mohammed bin Salman’s main Vision 2030 projects after the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, hired consulting firms to carry out a strategic review of the project.
The review was confirmed by Neom, the area where The Line is situated, which described it as “common practice” for long-term megaprojects. But according to analysts, the evaluation will probably concentrate on technical viability, funding, and economic feasibility, particularly as oil prices decline and Saudi Arabia’s budget deficit grows.
According to Tim Callen of the Arab Gulf States Institute, “there have always been doubts about the technology, cost, and speed of execution.” “Saudi Arabia no longer has the same financial cushion it had in 2022 with oil below $70 a barrel.”
The Line, a 105-mile linear city sandwiched between two 1,600-foot glass skyscrapers, seeks to transform urban living. The city, which is expected to house 9 million people, features car-free zones and a high-speed rail spine. On the ground, however, the present scene is still a huge desert construction site.
The kingdom’s detractors point to a “yes-man” culture surrounding Neom, where advisors might exaggerate their viability in order to meet leadership standards. Stronger consultant accountability and practical management are essential, according to Tarik Solomon of the American Chamber of Commerce in Saudi Arabia.
Given that Neom is expected to cost up to $1.5 trillion in total, a more thorough review of Saudi megaprojects seems to be required. According to insiders, Neom plans to reduce staff in an effort to strengthen financial management.
Although The Line might still go forward, experts predict it will probably be redesigned or postponed, which is a significant departure from the initial audacious plan to revolutionize the Saudi economy and urban planning worldwide.