Neom City-Wall. How Saudi Arabia builds metropolis of future

What is known about the city-wall

Neom is an ambitious urban development project initiated by Saudi Arabia to create a futuristic metropolis that redefines urban life and diversifies the country's economy by reducing its dependence on oil.

Launched in 2017 by Crown Prince Mohammed bin Salman, Neom is strategically located in Tabuk Province, on the northern edge of the Red Sea, on the border with Egypt and Jordan.

Mohammed bin Salman in 2019 (photo: Wikimedia)

The project covers an area of 26,500 square kilometers and includes various zones, such as a floating industrial complex, a global trade center, tourist resorts, and a linear city powered by renewable energy.

The project is located on an area of 26,500 square kilometers (photo: The Economist)

Construction progress and challenges

Neom was conceived as a flagship project of Saudi Arabia, symbolizing the economy's transition from oil to technology. In October, its first facility, the island resort Sindalah, hosted a lavish party with celebrities and businessmen. However, the reality turned out to be far from expectations: the resort was three years late, costs rose to $4 billion, and many facilities remained unfinished.

After an investment of $50 billion, ambitious plans - including a ski resort in the desert, a floating business district, and The Line (170 km long parallel skyscrapers) -came up against harsh reality. Costs have risen sharply, deadlines have been delayed, and the reduction of the first phase has jeopardized the idea of Neom as an economic center.

According to the internal audit, McKinsey & Co. and Neom's top managers overstated profitability forecasts while hiding the real costs. The report revealed manipulation of finances and, in some cases, intentional misrepresentation of data.

The project was criticized by various scientists and urbanists from the very beginning (photo: NEOM)

The initial cost of the full implementation of Neom by 2080 was estimated at $8.8 trillion, and the first phase by 2035 at $370 billion. Although Saudi Arabia is financing the project, the authorities hope to attract private investors.

Neom was conceived as a city of the future with loosened social and legal restrictions. The prince compared it to the pyramids of Egypt, promising that 9 million people would live there by 2045. He personally oversees many architectural decisions, including "weightless" architecture and fantastic concepts such as a 30-story inverted glass building.

The original plan called for the construction of 16 km of The Line by 2030 - the equivalent of three Manhattans. However, Neom did not have the manpower, infrastructure, and energy resources at its disposal, and high costs were hidden behind inflated profit forecasts.

Satellite view of the planned construction site in April 2021 (photo: Maxar Technologies)

The construction process in October 2024 (photo: Maxar Technologies)

In the ski resort of Trojena, expenses increased by $10 billion, which reduced profitability below the acceptable level. In order to artificially boost performance, hotel room rates were inflated several times.

The key problem remains The Line's height of 500 meters. Building such tall towers in the desert is extremely costly, and the staff has repeatedly suggested lowering the height. However, the prince refused, demanding that savings be sought elsewhere.

As a result, some of the projects were suspended, including the 30-kilometer rail tunnel. The first phase of The Line was shortened to 2.5 km, and its launch was postponed until 2034 when a stadium for the FIFA World Cup will open.

The future of the project

In the future, Neom plans to implement the concept of "The Line" - a 500-meter linear city, completely car-free, with a high population density, where all the necessary facilities will be within a five-minute walk. It is planned to introduce a high-speed transportation system to connect different parts of the city.

Saudi Arabia has invested hundreds of billions of dollars through the Public Investment Fund (PIF) in "giga projects" such as Neom.

The project proposes a "gravity-free urbanism" - a three-dimensional infrastructure that provides a five-minute walking distance (photo: NEOM)

The city is set to become home to an estimated nine million people and plays a key role in the kingdom's Vision 2030 economic diversification strategy, which aims to create new sources of growth beyond oil.

Saudi nationals and expats living in the country plan to spend $489 million on residential real estate in Saudi Arabia, according to a survey of 1,037 households, including 100 expats. They also intend to allocate $733 million for gigaprojects, the report said.

Financially, Neom continues to attract investment, and the residential real estate market is expected to bring in $1.22 billion this year. However, the project's popularity has declined, from 84 percent in 2023 to 17 percent in 2025, due to the emergence of other large megaprojects and a lack of move-in ready housing.

What the city will look like according to the project (illustrative photo: New Civil Engineer)

Sources: Reuters, The Wall Street Journal, NEOM, Wikipedia.