NEOM Faces a $16 Billion Penalty Bill as Saudi Budget Rethinks Mega-Projects
Saudi Arabia’s NEOM faces about 60 billion riyals ($16 billion) in payments to terminate long‑term contracts from 2026–2030, a sign of budget retrenchment as deficits and lagging foreign investment push the kingdom to curb ambitious projects. The cost highlights the price of halting work on initiatives like The Line and other deals with firms such as Webuild, even as NEOM preserves some spend on OXAGON and a green hydrogen project. Final cancellation totals could shift after contractor negotiations, and the broader strategy is to reprioritize spending toward ventures with clearer returns.