What is Vision 2030 and NOEM scaling back?
Introduction
Saudi Arabia continues to invest heavily in AI as part of its economic diversification strategy. The main reasons for scaling back some projects are:
Financial Constraints
Declining oil revenues have impacted government funding for mega-projects
The budget deficit was projected at $26.88 billion for 2025, limiting spending capabilities
Challenges in attracting foreign investment to fund ambitious projects
Project Reassessment
Some projects, particularly within NEOM, are being reevaluated due to their ambitious scale and technical challenges
The population projection for The Line has been reduced from 1.5 million to fewer than 300,000 by 2030
Practical Considerations
Technical challenges in constructing a linear city like The Line
Environmental concerns and the need for more sustainable development approaches
Continued AI Investment
Despite scaling back some projects, Saudi Arabia is actually increasing its focus on AI:
A recent $5 billion deal was signed to build an AI data center in NEOM
The kingdom aims to become a global hub for AI, not just a regional one
AI is expected to contribute 12% to the nation’s GDP by 2030
Saudi Arabia is positioning itself to be a key player in the future of AI
Conclusion
Vision 2030 and NEOM projects are being scaled back due to financial and practical considerations, AI investment and economic diversification remain core priorities for Saudi Arabia’s future development plans.