Business · Companies · 6 hrs ago
Saudi Arabia’s megaprojects face soaring costs and delays
Saudi Arabia launched Vision 2030 to prepare for a future less dependent on oil.
Crown Prince Mohammed bin Salman put major funding and decision-making power in the state investment fund, the PIF, to move projects forward quickly.
But the concentration of power weakened checks on whether projects were practical or affordable.
Neom has received more than $50 billion, while an internal audit estimated full completion could cost as much as $8.8 trillion.
Reports say project teams sometimes failed to share problems openly, and financial assumptions were made to look more favourable.
Some flagship plans are now delayed, reduced or paused: work on the Mukaab was reportedly suspended, while the Trojena ski resort is far behind its original goals.
Saudi Arabia is also said to face about $16 billion in costs to end contracts, but no next steps for the projects are specified.
Saudi Arabia’s megaprojects are facing soaring projected costs, delays and suspensions as the country tries to prepare for a future less reliant on oil.
More than $50 billion has reportedly been spent on Neom, while an internal audit put the cost of completing it at as much as $8.8 trillion.
Work on the Mukaab in Riyadh has reportedly been suspended, and the Trojena ski resort is far behind its original targets.
The article links the problems to weak oversight, limited local expertise, reliance on outside advisers and pressure not to challenge Crown Prince Mohammed bin Salman.
The projects are part of Vision 2030, which aims to prepare Saudi Arabia for a future in which oil may no longer reliably fund the country.
- Who
- Saudi Arabia and its Crown Prince Mohammed bin Salman are behind the megaprojects.
- What
- Major projects including Neom, the Mukaab and Trojena face high costs, delays or suspension.
- When
- The article was published on November 1, 2026; the project problems are described as ongoing.
- Where
- Saudi Arabia, including Neom, Riyadh and the Trojena site near the Red Sea.
- Why
- The projects are part of an effort to prepare the country for a future less dependent on oil, but the article says weak oversight and unrealistic plans have contributed to problems.
This story does not have two clearly opposing sides.
Crown Prince Mohammed bin Salman sought to prepare Saudi Arabia for a future less reliant on oil.
Planners reportedly proposed a more conventional city, but Mohammed bin Salman wanted two parallel high-rise structures stretching through the desert.
Work on the Mukaab had reportedly been suspended, while Trojena was described as far behind its original targets.
- Neom spending
- More than $50 billion reportedly spent
- Neom projected completion cost
- Up to $8.8 trillion, according to an internal audit
- Mukaab location
- Riyadh
- Trojena location
- Near the Red Sea
- Contract cancellations
- About $16 billion reportedly needed to unwind company contracts