Saudi Arabia is reprioritizing its NEOM megaproject to focus on essential elements for hosting high-profile sporting events, as rising costs prompt a re-evaluation of ambitions. The decision to scale back on some of the original plans follows the departure of NEOM’s long-serving CEO, Nadhmi al-Nasr, highlighting the project’s shift under new leadership.
NEOM, a massive Red Sea development nearly the size of Belgium, is at the heart of Crown Prince Mohammed bin Salman’s Vision 2030—a roadmap to diversify the kingdom’s economy beyond oil dependency. Originally announced in 2017 as a $500 billion endeavor, NEOM includes a variety of zones from logistics to residential areas. However, spiraling costs—particularly for its high-tech linear city, “The Line”—prompted a scaling back of plans.
Initially estimated to cost more than $1 trillion, “The Line” was envisioned as a 170-kilometer urban corridor with towering mirrored walls and green pathways. Now, work is concentrated on a 2.4-kilometer segment that includes a stadium slated to host the final of the 2034 FIFA World Cup. “The Line’s redesign to incorporate a stadium was a pragmatic move to add immediate value for upcoming events,” said a source familiar with the updates.
Another key priority is Trojena, NEOM’s planned mountain resort, which is set to host the Asian Winter Games in 2029. Trojena will bring winter sports to a region known for its desert climate, supporting NEOM’s strategy to position Saudi Arabia as a year-round global sports destination.
According to sources, the shift in focus comes as Saudi Arabia’s economy grapples with oil price volatility. With several projects previously behind schedule, the scaled-back vision aims to streamline efforts and target achievable goals. “The NEOM project has been broken down into more manageable pieces, with each phase evaluated for its immediate utility and impact,” a consultant noted, emphasizing the change in approach after al-Nasr’s departure.
While NEOM and the kingdom’s communications office have not publicly commented, insiders suggest more personnel shifts could be on the horizon. As the project’s scope narrows to prioritize sports and key venues, NEOM’s leaders are now under intense pressure to meet deadlines for these global events. Saudi Arabia’s move to center NEOM on international sports aims to leverage its platform for increased visibility, tourism, and economic growth in the coming decade.