Saudi Arabia Shelves $2.5 Billion NEOM Stadium Amid Delays and War Pressure

Saudi Arabia is quietly shelving plans to build the NEOM Stadium, one of its most ambitious venues for the 2034 FIFA World Cup. The stadium was supposed to be an elevated arena in a futuristic development called The Line, part of the broader NEOM project.

The Line was introduced as a key component of Saudi Arabia's Vision 2030, a plan to diversify the economy and reduce reliance on oil. However, the project has faced delays and downscaling, with Yasir Al-Rumayyan, governor of NEOM's owner, the Public Investment Fund, confirming in April that The Line was no longer a priority.

The NEOM Stadium is expected to cost $2.5 billion and had no listed completion date. However, according to MEED Projects, a construction industry market intelligence platform, the stadium has been put on hold. Other stadiums for the World Cup are progressing, with 15 venues being built or renovated across five cities.

The decision to shelve the NEOM Stadium comes as Saudi Arabia faces increasing pressure from the Iran war, which has led to disruptions in energy shipments and damage to critical infrastructure. The kingdom is also facing a fiscal deficit and real gross domestic product contraction following a drop in oil activities.