Several Saudi Arabia mega projects under Vision 2030 have quietly been delayed, cancelled, or redesigned in the past two years.
When these giga-projects were first unveiled, they were sold as the boldest urban experiments on the planet — a 170-km mirrored city in the desert, a ski resort with no natural snow, and a chain of 81 private-island resorts.
Years later, low oil prices, mounting costs, and regional conflict have forced Riyadh to quietly rework several of its flagship dreams. Here’s where the biggest ones actually stand.
NEOM and The Line: From a 170km Vision to an AI Data Hub
NEOM was launched in 2017 as the crown jewel of Vision 2030, and its centerpiece, The Line, was pitched as a 170-kilometre linear city holding up to 9 million people.
That vision no longer exists. A Financial Times report said Saudi Arabia plans to significantly scale back and redesign NEOM, with Crown Prince Mohammed bin Salman now said to envision something “far smaller” than originally planned.
By March 2026, construction on The Line was effectively suspended, with the Public Investment Fund having halted work back in September 2025 pending a strategic review.
The population target has also collapsed. The Line’s 2030 population goal was cut from 1.5 million residents to roughly 300,000, and the completed structure length was reduced from 170 km down to a 2.4 to 5 km opening segment.
Some reports suggest part of NEOM may now be repurposed as a hub for AI data centres instead of a residential megacity.
Trojena Loses the 2029 Asian Winter Games
Trojena, NEOM’s mountain ski resort, was meant to make history as the first Middle Eastern host of the Asian Winter Games.
That plan has been shelved. According to MEED and AGBI, the 2029 Asian Winter Games were moved from Trojena to Almaty, Kazakhstan, and several key contracts for Trojena’s construction — including the dam and the supply of structural steel — were cancelled.
Red Sea Project: Phase Two Put on Pause
The Red Sea Project promised 81 ultra-luxury resorts spread across 90 islands by 2030.
Seven sources told AFP that Saudi Arabia is scaling back those plans, with construction on Phase Two expected to halt at the end of 2026, as operating costs have outpaced revenue.
Red Sea Global has publicly denied any downsizing, saying it is simply following a “sequenced approach” once the first 27 resorts are complete.
Jeddah Tower: The Comeback After Seven Dead Years
Jeddah Tower construction stopped in 2018 after senior figures tied to the project, including contractor Saudi Binladin Group’s leadership, were detained in an anti-corruption sweep.
The building stood frozen at 63 floors from 2020 to 2025, before work resumed and the tower climbed to 100 floors by April 2025, according to Newsweek. Developers now say the tower remains on course for completion in 2028.
Diriyah Gate: A $63 Billion Dream Clouded by Arrests
At least two senior executives at the $63 billion Diriyah development were detained by Saudi Arabia’s anti-corruption watchdog, Nazaha, as part of an investigation, Semafor reported, with at least one executive later released and it unclear whether formal charges were filed.
Arabian Business confirmed the detentions were part of a wider anti-corruption drive across the kingdom.
Why Are Saudi Arabia Mega Projects Being Delayed? Money — and War
The core driver is years of low oil prices and ballooning construction costs. But regional conflict has made the picture worse in three specific ways, according to ORSAM’s analysis:
- Red Sea shipping disruption: NEOM sits on the Red Sea coast and relies heavily on imported materials. Houthi attacks have led to longer shipping routes, higher insurance costs, and delayed deliveries, slowing construction.Riyadh is now pursuing an overland trade corridor to reduce this dependence, though that adds its own time and cost.
- Investor caution: The ongoing conflict in Gaza and mounting regional security concerns have made foreign investors increasingly cautious, with many adopting a wait-and-see approach that could affect project financing.
- Rising defense spending: Saudi Arabia has paused new consulting contracts and is delaying payments on Vision 2030 projects like NEOM and the Red Sea development, a move tied to fiscal strain from lower oil revenues and regional instability, including the war in Gaza and tensions involving Houthi rebels in Yemen.
One analysis notes that NEOM’s most fundamental problems stem from internal fragilities rather than external geopolitical pressures alone — but the war and regional tension have clearly compounded an already strained budget.
Saudi officials are careful never to use the word “cancelled” — projects are “postponed,” “redesigned,” or “sequenced” instead.
conclusion
Not every Saudi Arabia mega project is struggling — Qiddiya’s Six Flags park and Aquarabia water park have both already opened, and Jeddah Tower is rising faster than ever.
But the kingdom’s most futuristic promises are quietly being resized to match both economic reality and a more dangerous regional environment