Saudi Arabia is revising its ambitious plans for an expansive 100-mile megacity, known as The Line, as part of its broader $2 trillion Neom project. This initiative is aimed at diversifying the economy and reducing reliance on oil under Crown Prince Mohammed bin Salman’s Vision 2030 plan. Recent announcements indicate a significant scaling back of the initial design.
Project Overview
The Line was envisioned as a futuristic linear city located in the desert near the Red Sea. Originally planned to accommodate 9 million residents, this vast urban landscape aimed to showcase innovative living spaces without cars or emissions, powered entirely by renewable energy.
Key Features of The Line
- Length: 170 kilometers
- Height: 500 meters
- Width: 200 meters
- Percentage of land reserved for nature: 95%
Despite its grand ambitions, the project has faced several setbacks, prompting the Saudi government to adjust its priorities. Analysts within the kingdom have reported significant financial constraints, leading to this strategic course correction.
Recent Developments
During a recent investment forum, a Saudi official remarked on the need for a more cautious approach. “We rushed at 100 miles an hour,” the official stated, emphasizing the necessity to reassess the funding amid growing budget deficits.
Population and Scale Adjustments
The revised plans will scale down the anticipated population from 9 million to approximately 300,000 residents, with the city expected to span only a few miles. This significant reduction indicates a shift in focus towards more achievable urban development goals.
Financial Context
The initial optimism surrounding Vision 2030 coincided with higher oil prices, averaging around $100 per barrel. However, current oil prices have not reached this threshold since 2022, leaving the Saudi economy still heavily dependent on oil revenues.
Investment Reallocations
In response to project delays and financial challenges, the kingdom is now gravitating towards investments in artificial intelligence and data centers. PIF governor Yasir Al-Rumayyan has noted that new strategies will be announced shortly to improve returns on investments.
Related Megaprojects Status
The progress of other components of the Neom initiative remains uncertain, with several projects experiencing delays.
- Oxagon: A floating industrial complex, initially projected for 2027 completion.
- Trojena: A mountain tourism hub with a skiing facility, expected to be delayed until 2032.
- Sindalah: The only completed destination, which held a grand opening in October but remains closed to the public.
In 2023, Neom announced twelve new projects, including Leyja, Epicon, Siranna, and Utamo, all of which are yet to be developed.
Future Outlook
The re-evaluation of The Line and other Neom projects reveals the complexities of implementing such expansive visions in a shifting economic landscape. As Saudi Arabia continues to navigate these challenges, the global community watches closely for updates on its ambitious modernization efforts.
