NEOM halts The Line until after 2030 with a $16bn cancellation bill
The flagship of Vision 2030 cuts its population target to 100,000 and faces a bigger bill to cancel contracts than to build, as Riyadh resets its megaproject
Summary
Saudi Arabia has halted all work on The Line — the 170km linear city at the heart of NEOM — until at least after 2030, per a 22 May Semafor report, with its mirrored towers redesigned to cut cost. The population target has been cut to "up to 100,000" by 2030, from an original 1.5m and a revised 300k; the workforce was cut about 35% and over 1,000 staff relocated to Riyadh. The 2026-30 budget earmarks roughly $16bn (SAR 60bn) to terminate contractor agreements — more spent on cancellation than construction — with known cancellations exceeding $8.45bn since late 2025. New CEO Aiman al-Mudaifer is pivoting NEOM toward the Oxagon industrial zone. The retreat tracks Mohammed Bin Salman's wider fiscal squeeze and a more disciplined PIF strategy.
By the numbers
- after 2030 — when The Line's work is paused until, at the earliest.
- 100,000 — cut 2030 population target, from 1.5m originally.
- ~$16bn (SAR 60bn) — earmarked to cancel contractor agreements.
$8.45bn — known contract cancellations since late 2025.
- ~35% — NEOM workforce cut; 1,000+ staff relocated to Riyadh.
Why it matters
NEOM was the signature bet of Vision 2030 and the symbol of MBS's transformation. Spending more to unwind contracts than to build, and slashing the population target 15-fold, marks a public reset — disciplined under a record deficit, but a visible retreat from the maximalist vision.
What to watch
- Whether the Oxagon pivot delivers revenue-generating output.
- The final cancellation bill and any contractor disputes.
- How the reset is reconciled with Vision 2030's 2030 deadline messaging.