Saudi Arabia has effectively suspended construction on the vast majority of its 170-km “The Line” project. Following a strategic review by the Public Investment Fund (PIF) that began in late 2025, the original vision of a 105-mile desert metropolis has been drastically scaled back in favor of a much smaller, pragmatic footprint.
The Current Status (March 2026)
The project has shifted from a “science fiction city” to a targeted industrial and digital hub.
- The 2.4-km Focus: Instead of 170 km, construction is now concentrated on a 2.4-km “initial phase” near the coast. This section is being prioritized to meet the deadline for the 2034 FIFA World Cup, where a centerpiece stadium is planned.
- Population Slashed: The target of 1.5 million residents by 2030 has been reduced to fewer than 300,000.
- Suspension of Work: Reports indicate that construction on the wider sections of the line was halted in September 2025. Heavy machinery and drilling rigs have been left in place, but the workforce has been demobilized or relocated to Riyadh.
- The “AI Data Center” Pivot: In a major strategic “reset,” much of the land previously excavated for housing is being redesigned to host seawater-cooled AI data centers, supporting the Kingdom’s push to become a global leader in artificial intelligence.
Why the Project Slowed Down
The suspension is the result of a “collision with reality” involving three primary factors:
| Factor | Impact |
| Financial Reality | Internal audits leaked in early 2026 projected the final cost at $8.8 trillion by 2080—over 25 times Saudi Arabia’s annual budget. |
| Oil Revenue Gap | Oil prices have hovered near $60–$70/barrel, well below the $90+ level the Kingdom requires to fund its “Vision 2030” gigaprojects without incurring massive deficits. |
| Reprioritization | Resources are being diverted to more “deliverable” projects for upcoming global events, such as Expo 2030 and the 2034 World Cup. |
Wider Impact on NEOM
The “reckoning” for The Line has triggered changes across the entire NEOM development zone:
- Leadership Change: CEO Nadhmi Al-Nasr unexpectedly stepped down in late 2024; his successor, Aiman Al-Mudaifer, has spearheaded the current downsizing.
- Trojena (Ski Resort): The 2029 Asian Winter Games, originally scheduled for Trojena, have been indefinitely postponed and the host city moved to Almaty, Kazakhstan.
- Sindalah (Island Resort): This remains the only part of NEOM that is officially open, though it faced massive cost overruns and delays before its 2024 launch.
The “Multi-Decade” Timeline
The Saudi government maintains that The Line is not cancelled, but rather “phased.” The vision of a full 170-km structure has been deferred to a timeline stretching toward 2045 or beyond. For now, the focus remains on ensuring that the small 2.4-km coastal sliver becomes a functional, high-quality neighborhood rather than a ghost project.
