OXAGON

Saudi authorities face a $16 billion cost to cancel NEOM contracts over five years, exceeding initial construction expenses for the $1 trillion futuristic city project. The financial burden reflects broader budget deficits and strategic retrenchment amid economic reevaluation and shifting priorities.

Saudi Arabia's NEOM has delayed work on The Line, its ambitious 170-kilometer dual skyscraper project, until after 2030 as the sovereign wealth fund pivots toward more practical infrastructure investments like ports and data centers. The company has also scaled back its 2030 population target to 100,000 residents and postponed development of tourism destinations and a mountain resort, reflecting a broader shift toward pragmatic project management.