Saudi Arabia's ambitious 500 billion project, *The Line*, a central component of the NEOM megacity initiative under Crown Prince Mohammed bin Salman's Vision 2030, is undergoing a significant strategic reassessment. Originally envisioned as a 170-kilometer linear city housing 1.5 million residents by 2030, the project's scope has been dramatically reduced. Current plans indicate that only a 2.4-kilometer segment will be developed by the target year, accommodating fewer than 300,000 residents.
This scaling back aligns with broader financial challenges facing the kingdom. A sharp decline in global oil prices has led to a budget deficit, with projected 2025 revenues of316 billion against 342 billion in spending. Additionally, Saudi Arabia's net national debt rose by 30 billion in the first quarter of 2025, marking the sharpest quarterly increase on record.
The financial strain has prompted the Public Investment Fund (PIF) to expedite debt sales and consider equity offerings in its portfolio companies [4] . Moreover, the consulting boom in Saudi Arabia is slowing, with the government reassessing the high costs of hiring external advisors for its vast infrastructure projects.
Despite these challenges, NEOM remains a fundamental pillar of Saudi Arabia's Vision 2030. The project's leadership has seen changes, with Aiman Al-Mudaifer appointed as acting CEO to ensure operational continuity and efficiency . The kingdom continues to pursue its goals of diversifying the economy and redefining urban living, albeit with a more phased and financially prudent approach.
0 Comments