Saudi Arabia’s NEOM megacity project, envisioned as a linear utopia stretching across the desert, now faces mounting evidence of collapse under the weight of unrealistic ambitions and financial chaos. Crown Prince Mohammed bin Salman’s flagship initiative, part of the broader Vision 2030 plan to diversify beyond oil, promised a self-sustaining hub of technology and luxury. Yet recent reports paint a picture of engineering nightmares, ballooning costs, and a scramble to salvage what’s left.

The Financial Times detailed the failures in a feature, describing NEOM as a “dream unraveled.” Almost everything has gone awry, from architects overlooking basic physics—”poop flows downhill”—to the need for hundreds of shuttle cars to handle waste from thousands of toilets. The signature element, The Line, was meant to be a 100-mile-long glass skyscraper on its side, complete with an indoor marina for cruise ships and a stadium for the 2034 World Cup. Instead, after eight years and $50 billion in overruns, the site remains largely barren.

Insiders revealed to the FT that management is figuring out how to “gently” break the news to the crown prince that his full vision won’t materialize. One former employee noted the impossibility of sourcing enough materials: France’s entire annual cement output wouldn’t cover even 20 modules due by 2030, let alone the shipping hurdles. The project has been slashed from 20 modules to just three, making it “uninvestable” in the eyes of some involved.

These setbacks tie directly to Vision 2030’s flawed assumptions. With oil prices dipping below $100 per barrel since 2022 and showing no quick rebound—current Brent crude hovers around $70 as of November 2025—the kingdom operates with only 60% of expected funds. A Saudi official admitted to The Times of London: “We spent too much. We rushed at 100 miles an hour. We are now running deficits. We need to reprioritize.” Another business leader called it the “Dubai disease” of hype and glitz over substance.

Compounding the financial strain are darker elements. Tribes displaced for construction have faced imprisonment for protesting, while unaudited spending raises questions about where billions have vanished. Reports from Dezeen suggest the scaled-back version, now aiming for just 300,000 residents by 2030 instead of over a million, resembles “sterile desert suburbia” rather than a revolutionary city.

UNILAD Tech warned of an impending collapse, citing expert concerns over the $8.8 trillion giga-project’s viability. Gizmodo labeled it a “dystopian” endeavor crashing amid bizarre architectural choices, like a 30-story building hung from a massive arch, inspired by Marvel films that caught the crown prince’s eye.

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Whispers in Saudi circles hint at deeper motives—perhaps NEOM serves as a grand distraction from domestic unrest or a conduit for funneling oil wealth into untraceable channels. With stalled elements like an airport runway blocked by a mountain and foundations poured for phantom structures, the project exemplifies the perils of top-down decrees ignoring practical limits. As the kingdom pivots to smaller AI ventures, NEOM’s fate warns against betting national fortunes on mirages in the sand.

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