The ambitious Saudi megaproject NEOM, envisioned as a futuristic smart city on the Red Sea coast, is facing increasing environmental scrutiny and mounting project delays. Positioned as the flagship of Saudi Arabia’s Vision 2030 strategy, NEOM was designed to showcase sustainable living, technological innovation, and urban reinvention. But as of 2025, a growing number of environmentalists, urban planners, and investors are raising concerns over the widening gap between the project’s promises and its current reality.
Scale and Cost of the Project
Saudi authorities originally announced that around $500 billion USD (approx. €460 billion) would be invested in the NEOM initiative. The project consists of several components: the linear city THE LINE, the industrial hub Oxagon, the mountain resort Trojena, and the luxury coastal island Sindalah.
A cornerstone of NEOM’s marketing has been its commitment to zero carbon emissions, 100% renewable energy, and minimal environmental disruption. However, many of these promises are now being questioned on both technical and ecological grounds.
Environmental Challenges
One of the most controversial aspects is THE LINE, a 170-kilometer-long, 200-meter-wide, and 500-meter-high linear city intended to accommodate up to 9 million residents. Mobility within the city would rely solely on high-speed public transport, with no traditional roads or cars. Buildings would be powered by renewable sources and designed to meet the highest standards of sustainability.
Despite these ambitions, environmental experts have flagged multiple issues:
- Large-scale disruption of desert and coastal ecosystems, home to rare species such as Arabian gazelles, Red Sea coral reefs, and mangrove forests.
- Mountain excavation in Trojena, where the government plans to build a ski resort and dam in a fragile alpine zone.
- Massive consumption of carbon-intensive materials like concrete, steel, and glass, undermining the project’s climate goals.
- Lack of transparency around environmental impact assessments, despite NEOM’s ESG marketing narrative.
According to analysts, the construction of THE LINE alone would require over 2 million tonnes of concrete and 1.5 million tonnes of steel, potentially resulting in more than 10 million tonnes of CO₂ emissions, unless significant carbon offsets or green construction techniques are used. These figures starkly contrast with the project’s vision of a “zero-impact city.”
Delays in Project Timeline
The initial plan envisioned that the first NEOM residents would move in by 2024. As of 2025, however, only preparatory groundwork and limited infrastructure development have been completed.
Current progress includes:
- Just under 2 km of foundational work completed for THE LINE, with no vertical construction started.
- Only temporary facilities and logistics infrastructure developed in Oxagon.
- Trojena remains in the concept phase.
- Sindalah, originally planned to open in late 2024, is now rescheduled for mid-2026.
Cumulative investment in NEOM has reached approximately €60 billion so far, although a significant portion has been spent on feasibility studies, branding, and global presentations rather than physical construction.
Infrastructure and Logistical Bottlenecks
NEOM is located in the remote and underdeveloped Tabuk Province. The lack of pre-existing infrastructure has caused considerable logistical challenges. Simply transporting the required construction materials into the area has proven costly and time-consuming.
Examples of related costs include:
- Building a deep-sea port and logistics hub in Oxagon: estimated at €1.2 billion
- Renewable-powered water desalination and energy plants: €4–6 billion
- A high-speed rail line along THE LINE’s entire length: projected at over €15 billion
Furthermore, increasingly frequent dust storms, soaring desert temperatures, and water scarcity raise additional concerns about both construction and future livability.
Human Rights Concerns and Forced Relocations
In addition to environmental and technical issues, NEOM has drawn criticism for the displacement of local Bedouin communities who have inhabited the region for centuries. Human rights organizations report that residents have been forcibly removed without adequate compensation or legal recourse, drawing negative international attention that could jeopardize future foreign investment.
Scaling Back and Strategic Revisions
Facing mounting criticism, Saudi authorities have signaled a possible downscaling of NEOM’s short-term targets. In April 2025, officials suggested that THE LINE may only house 1.5 million people by 2030, rather than the previously stated 9 million, with future growth dependent on demand and feasibility.
Discussions are also underway to break THE LINE into smaller, more manageable sections (10–20 km blocks) with simplified architectural requirements and reduced building heights.
While a scaled-down approach could alleviate environmental pressure and improve project viability, it also raises concerns among early investors who were drawn in by the project’s original scale and vision.
Role of International Partners
Despite ongoing challenges, NEOM still attracts interest from international engineering firms, design agencies, and clean tech companies. Notable partners include:
- Bechtel (USA) – managing large-scale infrastructure
- AECOM and LAVA (Germany) – handling architectural planning
- ENOWA – NEOM’s in-house energy and water subsidiary
Nevertheless, some sustainability consultants from Europe and North America have suspended their involvement, citing discrepancies between NEOM’s sustainability claims and its actual practices.
Conclusion
NEOM, conceived as a beacon of the future, is currently mired in environmental controversy, logistical complexity, human rights concerns, and prolonged delays. While the concept of building a radically new kind of city remains compelling, execution will require greater transparency, strategic realism, and stronger environmental governance.
At current construction speeds, meeting even revised 2030 goals appears unlikely. Without credible environmental assessments and an inclusive approach to development, NEOM risks losing investor confidence and global credibility.
However, a shift toward more modular, ecologically sound planning could salvage the project’s relevance. If Saudi leadership is willing to adapt its vision to be more pragmatic and transparent, NEOM could still become a case study in responsible innovation — rather than a cautionary tale of unfulfilled ambition.
