Construction on The Line — the flagship linear city at the heart of Saudi Arabia’s NEOM giga-project — was formally suspended in September 2025 after only 2.4 kilometres of the planned 170-kilometre structure had reached foundation stage, well short of the futuristic 1.5-million-person city that captured global imagination when announced. As of June 2026, NEOM is being repositioned from residential megacity to industrial infrastructure, artificial intelligence data centres, and green energy — components that can generate economic value and employment at realistic timelines. NEOM’s constituent projects are being transferred to Aramco, the Ministry of Sport, and Red Sea Global as the Public Investment Fund reorients capital priorities toward AI, mining, and core infrastructure.
What IS Being Built: Oxagon Port and the $8.4 Billion Green Hydrogen Plant
While The Line is in indefinite suspension, two NEOM components are making concrete progress. Oxagon — the industrial and port complex designed as a floating offshore platform combined with onshore manufacturing zones — has reached 68 per cent construction completion and recently opened for initial cargo shipments, with full container terminal operations scheduled to begin in 2026. Saudi Arabia’s first fully automated, remote-controlled cranes have been installed at the NEOM port, positioning Oxagon as a future smart port benchmark. The NEOM Green Hydrogen plant — backed by $8.4 billion of investment — reached 80 per cent construction completion targeting mid-2026 delivery. When operational, it will produce 600 tonnes of carbon-free hydrogen daily from 4 gigawatts of renewable energy, with green ammonia exports expected to begin in early-to-mid 2027.
Red Sea Resorts Scaled Back: 81 Properties Reassessed
Alongside the NEOM restructuring, Saudi Arabia is revising its Red Sea luxury resort strategy — scaling back plans to complete 81 properties by 2030 as the Kingdom reassesses delivery pace and scope. Red Sea Global is prioritising completions on projects already under construction over initiating new resort developments at the original pace. The revision reflects execution capacity constraints across global luxury hospitality construction, infrastructure readiness timelines, and the need to align tourism demand development with supply delivery. International project analysts characterise the adjustment as a normal programme management recalibration rather than a fundamental retreat from Saudi Arabia’s commitment to tourism as a long-term Vision 2030 pillar — with capital Economics confirming approximately 85 per cent of Vision 2030 targets remain on track or completed.
