Neom secures $24 billion in private funding as costs soar to $8.8 trillion by 2080 amid financial scrutiny and progress on The Line and Sindalah.

Saudi Arabia’s Neom

Neom, Saudi Arabia’s ambitious futuristic megacity project, has secured a significant infusion of private sector funding totaling $24 billion, as announced in October 2024 by Neom Deputy CEO Rayan Fayez during the Future Investment Initiative (FII) forum in Riyadh.

This milestone reflects a strategic pivot toward diversifying funding sources beyond the kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), which has been the project’s primary financial backbone since its inception as part of Saudi Vision 2030.

The $24 billion package comprises $16 billion in private sector commitments and $8 billion in debt financing, signaling growing investor confidence in Neom’s vision of sustainable urban development and technological innovation.

Fayez emphasized an “excellent appetite from the private sector” to co-invest, with the PIF continuing to play a key role by de-risking infrastructure investments to attract additional capital.

This comes as the PIF, managing over $925 billion in assets, adjusts its focus toward domestic mega-projects like Neom, reducing foreign investments to bolster Vision 2030 initiatives.

However, the funding boost arrives amid escalating cost projections and financial scrutiny.

An internal audit in March 2025 by the Wall Street Journal revealed that Neom’s total cost could reach $8.8 trillion by 2080—over 25 times Saudi Arabia’s annual budget—up from the initial $500 billion estimate.

The audit uncovered some Neom executives’ “deliberate manipulation” of financial assumptions, prompting the hiring of two corporate intelligence firms to investigate mismanagement allegations.

The first phase, extending to 2035, is now projected at $370 billion, raising questions about the project’s long-term fiscal sustainability.

Neom’s flagship components remain under active development, including The Line—a 170-km-long linear city—alongside Oxagon, Trojena, and Sindalah.

Sindalah, a luxury island resort, opened in October 2024 at nearly $4 billion, tripling its original budget.

Meanwhile, The Line’s first phase has been scaled back to 2.4 km by 2030, down from an earlier 16 km target, though Saudi officials deny any reduction in overall ambition.

Construction updates from March 2025 indicate progress, with solar panel installations spanning 50 km² and piling work advancing at Module 46 of The Line.

Despite financial challenges, Neom’s leadership remains optimistic.

At the World Economic Forum in January 2025, executives projected a 100-year timeline to fully realize The Line’s 9 million resident capacity, framing it as a “generational investment.”

The kingdom continues to explore alternative financing, including potential debt sales and an IPO of Neom on the Saudi Stock Exchange, initially considered for 2024 but yet to materialize.

Critics, however, highlight Neom’s reliance on the PIF amid Saudi Arabia’s oil-dependent economy and fluctuating foreign direct investment, which hit just $26 billion in 2023 against a 2030 goal of $100 billion annually.

The project also faces scrutiny over human rights concerns, including reported worker deaths and forced evictions, adding complexity to its global image.

As Neom balances ambitious innovation with financial realities, its latest funding success marks a pivotal step forward.

Though the road to completion remains fraught with economic and logistical hurdles, the kingdom presses on for now, betting on Neom as a cornerstone of its post-oil future.