Saudi Arabia is shifting its focus from its $500 billion NEOM project, the futuristic city announced in 2017, to AI-related technology. The change marks a shift away from massive construction projects toward faster-growing industries that offer quicker returns

Meanwhile, NEOM, the futuristic city announced in 2017, is losing momentum. The project received no mention in the 2026 pre-budget report after appearing for three years in a row. Construction has slowed, and work on its main feature, THE LINE, has been reduced. Some contractors and workers have been moved to other projects, while parts of NEOM remain under review.

Finance Minister Mohammed Al-Jadaan recently said that if a project no longer makes sense, the government will not hesitate to change or stop it. That signals a clear priority to direct capital to projects with faster payback and global reach.

The move reflects a shift in how Saudi Arabia plans to diversify its economy. After years of big-ticket construction spending, the kingdom now appears to favor high-tech ventures that can deliver faster growth and global relevance.

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