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The Line Saudi Arabia Megaproject Faces Strategic Review Amid Rising Costs

The Line Saudi Arabia, a $500 billion futuristic city, is now under scrutiny as financial pressures force a strategic review. Saudi Arabia’s Public Investment Fund (PIF) has hired consulting firms to reassess the feasibility of this 105-mile linear smart city. Located within the larger Neom development, The Line Saudi Arabia represents one of the kingdom’s most ambitious Vision 2030 projects.

Neom officials confirmed the review but called it a standard procedure for long-term megaprojects. However, experts believe rising costs and economic concerns triggered this move. Tim Callen, a visiting fellow at the Arab Gulf States Institute, stated that the review will likely examine technical feasibility, financing, and economic impact.

Oil prices, a key revenue source for Saudi Arabia, have dropped significantly. With Brent crude hovering around $70 per barrel, the kingdom faces budget constraints. Callen added that while Neom will continue, it may proceed on a smaller scale or a longer timeline.

The Line Saudi Arabia promises a revolutionary urban design—a city encased between two 1,600-foot mirrored skyscrapers. Yet, construction remains in early stages, with only foundational work visible so far. Analysts question whether the required technology even exists yet.

Another issue is the project’s management culture. Critics claim a “yes-man” mentality has led to overly optimistic projections. Tarik Solomon, chairman emeritus at the American Chamber of Commerce in Saudi Arabia, argued that expectations were poorly managed. He stressed that consultants must take more responsibility for realistic planning.

Neom is just one part of Saudi Arabia’s massive infrastructure push. However, with Vision 2030’s goals clashing with financial realities, other projects may also face delays. The kingdom must now balance ambition with fiscal discipline.

Job cuts at Neom suggest a shift toward cost-saving measures. One consultant, speaking anonymously, noted that leadership is finally making financially sound decisions. Whether these adjustments will ensure The Line Saudi Arabia’s success remains uncertain.

The strategic review could lead to scaled-back designs or extended timelines. Yet, Saudi officials remain committed to Neom as a cornerstone of economic diversification. The world will be watching closely as The Line Saudi Arabia navigates these critical challenges.

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