Saudi Arabia's Neom vs Dubai: How Prince Mohammed bin Salman's $8.8 trillion futuristic city is fading into the sand

Neom was designed to be a marvel of modern civilisation—an ultra-high-tech, sustainable city emerging from the desert. With plans for a 106-mile-long mirrored skyscraper, an artificial ski resort, and a floating business district, Crown Prince Mohammed bin Salman envisioned Neom as a revolutionary leap into the future. However, reality has been less accommodating. Costs have skyrocketed, deadlines have been pushed back, and an internal audit has flagged serious financial mismanagement.

A Colossal Price Tag

According to a Wall Street Journal report, Neom’s estimated cost has ballooned to $8.8 trillion—over 25 times Saudi Arabia’s annual budget. The first phase alone, set for 2035, is projected to require $370 billion. So far, the kingdom has poured in $50 billion, but progress has been slow.

Auditors uncovered “evidence of deliberate manipulation” of financial figures by senior management, raising accountability concerns. In one instance, projected hotel rates were artificially inflated to justify financial targets—hiking lodge prices jumped from $489 to $1,866 per night, while glamping site rates surged from $216 to $794.

The Line Shrinks

The Line—the centrepiece of Neom—was originally planned as a 106-mile-long city featuring 1,600-foot skyscrapers. Now, the initial construction phase has been drastically scaled back to just 1.5 miles, with completion expected by 2034. Even recommendations to lower the skyscrapers’ height to 1,000 feet to cut costs were rejected by Mohammed bin Salman.

“We’ll start to go vertical—hopefully—at the end of this year,” said The Line’s development head, Denis Hickey, at the World Economic Forum.

Sindalah: A $45 Million Party, but No Guests

Neom’s launch event at Sindalah, a luxury coastal resort, in October 2024 featured celebrities like Will Smith and Tom Brady, with Alicia Keys performing for global business elites. The event alone cost $45 million. Yet, Sindalah remains largely unfinished—its hotels and golf course are not yet open, leaving restaurant staff with nothing to do.

McKinsey’s Profitable Role

While Neom faces uncertainty, consulting giant McKinsey & Company has emerged as a major beneficiary, reportedly earning over $130 million annually for its involvement. Despite accusations of conflict of interest, McKinsey denies any role in financial manipulation, stating that it follows “strict protocols to prevent conflicts of interest.”

A Leadership Shake-Up

In November 2024, Neom’s CEO, Nadhmi al-Nasr, resigned just weeks after allegations surfaced that tens of thousands of migrant workers had died during construction. His departure highlighted growing instability within the project. A new leadership team has since been installed to restore Neom’s credibility and direction.

Neom remains a pillar of Saudi Arabia’s Vision 2030 strategy. While other aspects—such as increased female workforce participation and private sector growth—have seen progress, Neom’s future remains uncertain. The kingdom has subtly shifted its messaging, now calling Neom a “generational investment” rather than a short-term economic driver.

However, with persistent infrastructure challenges, mounting costs, and waning investor confidence, Neom is at a crossroads. Can Mohammed bin Salman’s grand vision overcome its mounting troubles, or is Saudi Arabia’s futuristic city destined to become an expensive mirage?