Saudi Arabia has invited consulting firms to review the feasibility of The Line, its 170km-long, car-free city on the Red Sea coast. The futuristic development is a key part of Neom, a megaproject under Crown Prince Mohammed bin Salman’s Vision 2030, a plan to diversify the kingdom’s oil-based economy. The consultants have been commissioned by the Public Investment Fund (PIF) to see if this project can be finished as it was conceived in the first place, says a report by Bloomberg.

This follows earlier stories about Neom’s top brass already having commissioned a “comprehensive review” of the project. Increasing doubt hangs over the future of The Line, particularly given its enormity and expense.

From Grand Vision to Scaled-Down Reality

When The Line was unveiled in 2021, the news made headlines around the world. The ambition was visionary: a car-free, street-free city with zero carbon emissions. Crown Prince Mohammed bin Salman promised citizens would have everything within a five-minute walk and could travel the entire length of the city within 20 minutes using high-speed rail. The project aimed to house one million residents and generate 380,000 jobs while contributing $48 billion to the Saudi economy.

But by 2024, plans were being drastically scaled back, according to Bloomberg. From the initial target of 1.5 million residents by 2030, the new figure is now less than 300,000. As much as 2.4km of the planned 170km stretch of the city is likely to be realized by the end of this decade.

Economic Pressures and Oil Price Volatility

The move to re-evaluate The Line comes against the backdrop of wider economic pressures on the kingdom. Though Saudi Arabia has implemented social and economic reforms, opening up to buying real estate abroad, its budget still largely relies on oil, accounting for 61 percent of its 2025 budget. With Brent crude prices below $70 a barrel for much of this year, finance for big-ticket megaprojects has been becoming more challenging.

In April, Goldman Sachs released a note of caution that Saudi Arabia’s budget deficits would be “pretty significant” and forecasted additional reductions in megaprojects such as Neom. The unexpected increase in production by Saudi-led Opec+ during the same month, which was said to target members that went over production ceilings, contributed to oil market volatility and deepened financial woes.

Domestic strains in Neom have also slowed progress. Nadhmi al-Nasr, who oversaw construction from 2018 to 2024, resigned in November. Under his strict management style, he was quoted as having told subordinates, “When they drop down dead, I celebrate. That’s how I do my projects.” Two other foreign executives also departed Neom at the close of 2024, cited for gross conduct and insulting remarks.

After Nasr’s departure, Aiman al-Mudaifer took over as CEO. Mudaifer formerly headed a real estate unit within the PIF, which oversees nearly $1 trillion in assets. His appointment could be an indication of a strategic change in direction for Neom.

Conclusion

The Line, which was initially touted as a groundbreaking leap into the future, now has an uncertain direction. Budget worries, oil price volatility, and internal turmoil have Saudi Arabia questioning if its vision can be met in reality.