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Saudi’s NEOM Project Scales Back Plans But Construction Still Continues

Saudi Arabia’s $500 billion NEOM project, including its futuristic city The Line, continues construction with major progress on key sections but faces financial setbacks and extended timelines.

BY Realty+
Published - Thursday, 23 Oct, 2025
Saudi’s NEOM Project Scales Back Plans But Construction Still Continues

Saudi Arabia’s $500 billion NEOM project, particularly its centerpiece, The Line continues to attract global attention as one of the world’s most ambitious urban experiments. Marketed as a 170-kilometer, zero-carbon city without cars or streets, NEOM promised to redefine the future of urban living through advanced technology, artificial intelligence, and sustainable construction.

However, by 2025, progress has been slower than anticipated. Only limited sections of The Line are under construction, and Saudi officials are now revising timelines and budgets, sparking questions about how and when this futuristic vision will take shape.

NEOM’s ‘The Line’: A Glimpse Into Saudi’s Futuristic Megacity

At the heart of NEOM lies The Line, a striking concept for a linear city stretching across 170 kilometers in the Tabuk province, near the Red Sea. Designed with mirrored facades and powered entirely by renewable energy, The Line was meant to accommodate nine million residents in vertically stacked communities without cars or pollution.

As of 2025, construction is advancing but slower than initially planned. Several components have reached key milestones that give the world a first real look at this bold urban vision.

Current Construction Milestones

Hidden Marina Development:
One of the first major sections under development is the Hidden Marina — a 2.4-kilometer stretch envisioned to host around 200,000 people. The area will feature roughly 80,000 apartments, 9,000 hotel rooms, retail centers, and entertainment spaces. The goal is to finish this segment by 2030, aligning with Saudi Arabia’s preparations for hosting the 2034 FIFA World Cup.

Foundation Work and Earthworks:
Massive groundwork is underway. Over 4,500 foundation piles have been installed, with a target of 15,000 in total. Every week, approximately one million cubic meters of soil is being excavated to prepare the site for vertical construction. These efforts lay the foundation for The Line’s ambitious architecture and advanced infrastructure.

Infrastructure Development:
Parallel to construction, crews are building essential systems, including tunnels, canals, and rail networks that will form the city’s transport and service backbone. These will enable The Line to operate as a car-free zone, relying on AI-powered public transport and renewable energy grids.

NEOM’s ‘The Line’ Faces Major Setback

Despite its scale and vision, The Line has run into obstacles. Initially planned to be ready well before 2030, the timeline has now been extended significantly. By late 2025, only a 2.4-kilometer section has been completed, with no residents yet moved in.

The Saudi Public Investment Fund (PIF), which finances NEOM, recently recorded an $8 billion write-down linked to the project, indicating financial strain. Officials have quietly shifted the estimated full completion to 2045, a notable delay from earlier expectations.

Still, construction continues on key portions, with planners emphasizing that the project’s phased rollout allows lessons to be applied progressively as technology and design evolve.

Historical Background: How NEOM Came to Be

NEOM was first announced in 2017 as part of Vision 2030, Saudi Arabia’s strategic plan to diversify its economy beyond oil. The name combines the Greek word Neo (new) with the Arabic Mostaqbal (future), translating to “New Future.”

Key milestones in NEOM’s evolution:

  • 2017: NEOM unveiled at the Future Investment Initiative as a $500 billion smart megacity.
  • 2018–2019: Land surveys, design competitions, and environmental studies took shape; Trojena, the futuristic mountain resort, was announced.
  • 2020–2021: Early road, utility, and pilot infrastructure work began.
  • 2022–2024: Plans expanded to include hydrogen production, AI systems, and smart grids — but delays and cost overruns appeared.
  • 2025: Vertical construction began on parts of The Line, but the timeline was formally pushed back as cost and scale realities set in.

Why It Matters

NEOM is more than just a city, it is a global laboratory for sustainable living and smart infrastructure. Its progress, setbacks, and innovations could shape how future megacities are designed worldwide. Whether NEOM succeeds or stalls, it represents a daring test of how urban environments might function without cars, pollution, or traditional layouts.

Possible Rollout and Completion Timeline

The Line is being developed in stages. The first 2–5 kilometers are expected to be structurally completed by late 2026, showcasing the city’s first pilot residential and commercial areas.

The midsection expansion, including transit systems and public spaces, is scheduled through 2030, potentially opening portions of the city to early residents.

Full completion of the 170-kilometer stretch is now projected for 2045, accommodating millions and fully integrating renewable energy and AI systems. However, officials caution that these dates are flexible and depend on financial conditions, construction feasibility, and technological progress.

Despite delays and challenges, NEOM remains one of the world’s boldest attempts to reimagine how cities of the future might look and function — a monumental test of Saudi Arabia’s vision for a post-oil world.

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