Saudi Authorities Expect NEOM Cancellation Costs to Exceed Construction Costs Over Next Five Years

Saudi authorities expect that, over the next five years, the cost of canceling parts of the NEOM project will exceed the cost of building them, signaling a further scaling back of what was once described as one of the world’s most ambitious development plans. According to Jin10, U.S. financial media outlet Semafor reported that the futuristic city in northwestern Saudi Arabia previously had construction costs that were once expected to exceed $1 trillion. People familiar with the matter said NEOM’s budget for 2026 to 2030 includes 60 billion riyals in expected payments to compensate contractors for terminating long-term contracts. The payments are tied to penalty clauses and indicate that pausing portions of the project could remain costly nearly a decade after Crown Prince Salman unveiled the plan.