NEOM could spend around SAR60bn, or $16bn, on payments to contractors for terminating long-term agreements between 2026 and 2030, according to the report by Arabian Business.  The anticipated payments are linked to contractual penalty clauses and represent the latest indication of a significant reset at one of Saudi Arabia’s largest development programmes.

Semafor reported that Saudi authorities expect to spend more on cancelling NEOM projects during the five-year period than on constructing new developments.

Its best-known developments include THE LINE, the proposed 170km linear city extending inland from the Red Sea, alongside OXAGON, TROJENA, Sindalah and several tourism and industrial projects.

Saudi Arabia has already spent around $64bn on NEOM, the report said.

Visible progress has been concentrated in developments including OXAGON, the industrial city and port, and an $8.4bn green hydrogen project nearing completion.

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