TFS Gulf 
- TechCrunch reports Saudi Arabia’s futuristic city “The Line” is turning into a financial disaster.
- Initially pegged at $500B, internal audits now estimate the cost could hit $8.8T – over 25× the Kingdom’s annual budget (WSJ).
- The red flags have forced Saudi Arabia’s $1 trillion Public Investment Fund (PIF), the project’s main backer, to hire consultants to reassess the project’s feasibility.
- Meanwhile, McKinsey is earning $130M+ yearly, despite mounting criticism.
What is The Line?
Saudi Arabia first announced NEOM in October 2017.
From tourism and biotech to robotics and mobility, NEOM was meant to create entirely new sectors of the Saudi economy.
In January 2021, Saudi Arabia announced The Line, a key component of NEOM, the dream of building a linear city across the desert.
It was a cornerstone of the Kingdom’s Vision 2030 plan. And The Line was its most ambitious piece.
The futuristic city was meant to be 170 km long, 200 meters wide, and home to 1.5 million people by 2030.
No roads, no cars, no carbon emissions.
It was the perfect megacity, straight out of science fiction.
PIF launched an audit of the project
In early 2025, PIF launched a full audit of NEOM and The Line.
What they found was damning: overly ambitious projections, budget escalations, and feasibility, some of which were backed by McKinsey & Co.
Yes, reports say McKinsey & Company, heavily involved from day one, not only helped design the project but also validated the financial and feasibility models, raising conflict of interest questions.
McKinsey reportedly earns over $130 million per year from NEOM and The Line contracts.
Who else was involved?
NEOM wasn’t just a government project; it was built on decks, models, and master plans created by the world’s top consulting and engineering firms:
- Boston Consulting Group (BCG)
- Oliver Wyman
- Bain & Company
- AECOM
- Bechtel
- Arup
- Tech partners like Accenture and IBM
Also read: Saudi Arabia launches AI Company ‘Humain’… just as Trump lands in Riyadh
Layoffs, freezes, and restructuring
The financial pressure is showing on the ground.
Since April 2025:
- Around 35% of construction workers have been laid off.
- Over 1,000 employees were relocated from the NEOM site to Riyadh, many losing key benefits like housing and allowances.
- A hiring freeze is in place for all full-time roles. Only critical contractor roles are being filled.
- According to Semafor, another 1,000 layoffs may be underway, though this hasn’t been officially confirmed.
NEOM’s original CEO, Nadhmi al-Nasr, was replaced by Aiman al-Mudaifer, acting CEO and trusted voice within PIF.
But there is reporting (esp. by Semafor and WSJ) that McKinsey’s role is being re-evaluated as Saudi considers bringing in new consultants to reassess NEOM and The Line’s viability.
Also read: Saudi Arabia’s PIF, $925Bn sovereign wealth fund bans PwC
What’s left of The Line?
Despite $50 billion spent, only:
- Only 2.4 km of The Line is actively under construction (Reported by Bloomberg )
- Population target cut from 1.5 million to just 300,000
- Audits suggest completion could take 55 to 100 years
McKinsey is called out for helping sell a dream and validating a financial model that wasn’t grounded in reality.
There’s no public statement from PIF or the Saudi government that McKinsey is officially “under scrutiny.”
