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Saudi Arabia Reviews $500bn 'The Line' Megacity Amid Budget Constraints

Saudi Arabia’s $500bn urban megacity The Line is under feasibility review, as consultants assess its scope amid shifting timelines, oil price volatility, and budgetary pressure.

BY Realty+
Published - Saturday, 19 Jul, 2025
Saudi Arabia Reviews $500bn 'The Line' Megacity Amid Budget Constraints

Saudi Arabia’s Public Investment Fund has hired consultants to reassess the feasibility of The Line, its $500 billion linear city project under the Neom initiative. Envisioned as a 170km-long net-zero urban corridor without cars or streets, the project is undergoing a comprehensive review amid shifting timelines, resource constraints, and economic headwinds.

Originally planned to house 1.5 million residents by 2030, revised projections now target just 300,000 people living in a 2.4km stretch by that date. The reassessment follows earlier announcements by acting CEO Aiman al-Mudaifer and reflects broader recalibrations across Saudi Arabia’s megaproject portfolio, driven in part by falling oil prices and budgetary pressures1.

Despite skepticism around the city’s linear design and underground infrastructure, Neom officials maintain that The Line remains a strategic priority. A spokesperson noted that such reviews are “typical with large-scale, multi-year projects” and emphasized ongoing efforts to improve efficiencies and accelerate progress.

Urban experts have questioned the viability of the concept, citing inefficiencies in linear city planning. Rafael Prieto-Curiel of the Complexity Science Hub remarked, “A line is the least efficient possible shape of a city. There’s a reason why humanity has 50,000 cities, and all of them are somehow round”.

With Brent crude trading below $70 a barrel and OPEC+ dynamics adding fiscal strain, Saudi Arabia may be forced to scale back or re-sequence its Vision 2030 ambitions. Goldman Sachs has warned of “significant” budget deficits and potential cutbacks in megaproject spending2.

As the world watches, The Line stands at a crossroads—between visionary urbanism and pragmatic recalibration.

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