PLANS to build an 106-mile long sideways skyscraper and transform Saudi Arabia’s economy have been dramatically scaled back.
The Line was to be home to 1.5 million residents by the end of the decade – but will now house 300,000 and stretch a measly 2.4km.
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Saudi Crown Prince Mohammed bin Salman Al Saud’s £1trillion city in the desert was promised to be a “civilisational revolution”.
It was the crown jewel in the Saudi government’s Vision 2030 – a program launched to increase diversification economically, socially, and culturally, in line with the Crown Prince’s vision.
With mind-bending proposed dimensions – 106 miles long by 200 metres wide – The Line was supposed to “shine a light on alternative ways to live”, according to the Crown Prince.
The structure was to be created out of mirrored glass in the Tabuk Province, facing Egypt across the Red Sea.
Inside The Line, there was to be every luxury a person could dream of – from an octagonal floating port and a swimming lane to a synthetic ski resort and a sports stadium.
The expected 1.5 million residents were to be served and supported by robots and AI creations.
But the giga-project hoped by the Crown Prince to move Saudi Arabia’s economy away from its reliance on oil may not proceed as expected, according to new reports seen by The Telegraph.
Despite plans for the mirrored city to extend 106 miles and house 1.5 million residents by the end of the decade, it is now looking more likely that it will stretch 2.4km and house only 300,000 people by 2030.
The “unsurprising” scale-down is said by experts to reflect the Saudi government’s struggles to win over foreign investors, as well as the nation’s vulnerability to oil prices.
Torbjorn Soltvedt, principal analyst at risk consultancy Maplecroft
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The Line was arguably the most striking element of the proposed 10,232mi2 urban development Neom being built at the northern tip of the Red Sea.
Aerial images released earlier this year showed a chasm for the futuristic city had been carved out of mountains and desert as excavation works continued along the country’s northwestern coast.
About three quarters of Saudi Arabia’s budget revenues have come from oil since 2010, according to figures from the International Monetary Fund, meaning the Kingdom is very much at the mercy of oil price fluctuations.
James Swanston from Capital Economics explained that the country, which last year sold nine million barrels of oil per day, needs the price to be at least $93 (£73) to balance its budget.
He told The Telegraph: “The bigger picture of the backdrop of the Saudi economy is that they returned to running a budget deficit in 2023, about 2pc of GDP.
“This has come as they started to loosen fiscal policy to support the kingdom’s non-oil economy and invest in projects like Neom
“To support this level of spending they need a higher oil price.”
He added: “Even with the rally we have seen this year with the spillovers from the war between Israel and Hamas, it is still not at that level.”
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