Saudi Arabia Scales Back Mega‑Projects as LIV Golf Falters and The Line Shrinks

Vision 2030, launched by Crown Prince Mohammed bin Salman, aimed to diversify the economy away from oil by building futuristic cities and global sports assets. The plan relied on the kingdom’s sovereign wealth fund, which holds roughly $1 trillion, to finance projects that would attract foreign investment and create jobs for a young population. However, a drop in oil prices before the recent Middle East conflict reduced revenues, and the ensuing uncertainty has kept oil‑linked income volatile. At the same time, foreign direct investment has not arrived at the levels officials anticipated, putting pressure on the purse strings.

Ellen R. Wald, author of *Saudi, Inc.*, observes that the pattern of announcing grand projects then scaling them back repeats itself across Saudi history. She notes that officials repeatedly promise massive constructions, only to later downsize or abandon them. The Line, originally conceived as a linear city over 100 miles long and taller than London’s Shard, is now being significantly reduced in scope, with planners cutting its length and height to make the venture more feasible. Meanwhile, the LIV Golf tour has consumed about $5 billion since its inception. Despite the outlay, the tour has not generated measurable financial returns nor improved the kingdom’s international reputation in sport.

The pullback signals a shift from visionary rhetoric to fiscal realism, as policymakers prioritize budget discipline over prestige projects. For investors, the reduced scale of Neom may lower perceived risk but also diminish the transformative promise that initially drew interest. For the broader economy, continued reliance on oil revenues remains a vulnerability unless alternative sectors gain traction. Looking ahead, analysts will watch whether the trimmed versions of The Line and other Neom components break ground on schedule, and whether any future sports ventures demonstrate clearer economic benefits before further funds are committed.