Article

Saudi Arabia plans to significantly reduce the Neom megacity project due to economic pressures, with Brent crude oil prices remaining below $70 for nearly a year. An internal review is set to conclude, leading to a redesign of the project initially announced in 2017, which aimed to diversify the economy and attract foreign investment.

The original budget of $500 billion has ballooned to an estimated $1.5 trillion. Reports indicate Neom may shift focus to data centers, aligning with the country's ambition to become a hub for artificial intelligence.

Despite the planned modifications, Neom is under tight deadlines to be ready for Expo 2030 and the 2034 World Cup. Saudi Arabia anticipates a budget deficit of 165 billion riyals (approximately $44 billion) for 2026, influenced by stagnant oil prices and increased spending in priority sectors like industry, logistics, and tourism.