The Line Project is one of the most ambitious developments in the world today and serves as a central pillar of Saudi Arabia’s Vision 2030. Announced in October 2021, it is located in the NEOM region in the northwest of the Kingdom. The Line represents an innovative model for future cities, stretching 170 kilometers in length with a width not exceeding 200 meters, and aims to accommodate about 9 million residents upon completion. This linear city is being built according to the latest sustainability standards, relying entirely on renewable energy and smart underground transportation networks, away from traditional cars and streets. In the Saudi financial market, The Line holds particular significance as it supports the Kingdom's drive to diversify its economy away from oil dependency and attracts substantial investments in sectors such as real estate, technology, renewable energy, and smart infrastructure. Although The Line is not a listed entity on Tadawul and does not have direct shares or financial data, its impact extends to major Saudi companies and contractors, reflecting on the performance of multiple sectors in the local market. In this article, we provide a comprehensive definition of The Line Project, review its details and objectives, and analyze it from a financial market perspective, focusing on recent developments, challenges, and opportunities.
What is The Line Project?
The Line Project marks a paradigm shift in the concept of modern cities. It is a linear city approximately 170 km long, located within the NEOM area in the northwest of Saudi Arabia. Crown Prince Mohammed bin Salman announced the project in 2021 as a global model for smart cities, combining environmental sustainability, technological innovation, and quality of life. The Line is distinguished by the absence of cars and traditional streets, relying instead on a smart underground transport network, with all essential services available within a five-minute walk from any point. The city is planned to be enclosed by towering glass walls reaching 500 meters in height and will ultimately accommodate around 9 million residents. The Line is designed to be fully powered by renewable energy and uses artificial intelligence to manage daily services, focusing on reducing carbon emissions and achieving sustainability. This bold concept makes The Line a unique example among global smart city projects.
Objectives of The Line and Its Role in Vision 2030
The Line is part of a suite of strategic projects aimed at realizing Saudi Vision 2030, which seeks to diversify income sources and transform the Kingdom into a global hub for investment and advanced technologies. The project focuses on delivering a sustainable urban model that integrates the natural environment with urban development, while creating new economic opportunities in non-oil sectors. Key objectives include providing an integrated residential, commercial, and industrial environment, attracting global talent and tech companies, raising the quality of life, and generating thousands of jobs for Saudis in engineering, technology, and clean energy. The project also aims to enhance the Kingdom’s position on the urban innovation map and highlight it as a destination for investment in smart cities and future infrastructure.
Linear City Design: Engineering and Smart Infrastructure
The Line’s design is based on the linear city concept, stretching 170 km in length, no more than 200 meters wide, and flanked by 500-meter-high walls, giving the city a distinctive and unique shape. The urban planning ensures that all services are accessible within a five-minute walk, supported by an ultra-fast underground transportation network. The smart infrastructure includes automated transport systems (such as magnetic levitation trains), advanced communication networks, and environmental and administrative sensors powered by artificial intelligence. The city aims for energy self-sufficiency through complete reliance on renewable sources (solar, wind, and potentially hydro), alongside advanced systems for waste and water management, ensuring minimal environmental impact and the highest sustainability standards.
Financing and Key Partners in The Line Project
The Public Investment Fund (PIF) is the primary financial backer of The Line, allocating a significant portion of its resources to finance NEOM and its various projects. In 2023, the fund strengthened the project’s capital base through strategic partnerships with major Saudi companies such as Aramco and SABIC, each investing approximately 5% in NEOM (with a combined value between $4 and $6 billion). Additional funding is being sought from international investors and global investment funds through memoranda of understanding and, if needed, the issuance of bonds or international loans. Both global and local engineering and technology firms are involved in different phases of the project, with roles distributed according to specialization (civil engineering, smart infrastructure, energy solutions). This diversified funding model aims to ensure project sustainability and reduce reliance on direct government funding.
Project Costs and Expected Investment Volume
The total cost of The Line is estimated at around $500 billion (approximately SAR 1.9 trillion), covering smart infrastructure development, construction, renewable energy networks, and advanced technologies. With some project phases being re-evaluated in recent years, final estimates may change as execution progresses. The first phase (N1), a pilot segment of about 9 km, has been allocated a budget of $3 billion. Spending is expected to multiply as the project expands, especially given the immense need for construction materials such as steel and concrete; reports indicate the project could consume up to 20% of the world’s annual steel production in certain years. Investment in The Line is not limited to construction but also includes the development of artificial intelligence, renewable energy, and digital infrastructure technologies, making it one of the largest investment projects in the region.
Implementation Phases and Completion Timeline
NEOM is adopting a phased development approach for The Line, starting with the first phase (N1) spanning 9 km, aimed at showcasing initial results and accelerating progress. This phase is expected to accommodate several thousand residents, with the development of essential residential and commercial units and the establishment of smart infrastructure. According to official statements, the first phase is expected to open to residents before 2030, while NEOM plans to gradually expand the project to reach the full 170 km length by 2050. The timeline may be adjusted based on logistical or financial challenges, but the general direction is to achieve tangible milestones in the near term to attract investors and build confidence in the project.
Impact of The Line on the Saudi Financial Market
Although The Line is not an independent financial entity nor a company listed on Tadawul, its impact on the Saudi financial market is significant and indirect. The project’s success and tangible progress enhance investor confidence in the Saudi economy as a whole and positively affect the shares of companies contracted with it or operating in its core sectors (construction, renewable energy, technology, infrastructure). For example, increased demand for building materials and smart services may improve the performance of Saudi contracting and industrial resource companies in the market. Additionally, the potential public offering of NEOM-related assets in the future could deepen the market and attract new liquidity. Conversely, the market faces risks associated with the project’s complexity and scale, as significant delays or cost overruns could negatively affect investor sentiment.
Saudi Sectors and Companies Benefiting and Affected
Saudi companies benefit from The Line Project based on their participation in its execution or in providing necessary services and materials. The main affected sectors are: 1) Construction and infrastructure (contracting companies, building materials, smart city engineering), 2) Renewable energy (solar and wind energy developers, green energy solution providers), 3) Technology and telecommunications (telecom service providers, software and smart solutions companies), 4) Real estate (real estate developers and asset managers). Among the Tadawul-listed companies announced as having partnerships or contracts with NEOM/The Line are Saudi Aramco (2222), SABIC (2010), and several major Saudi contracting firms. Any positive development in the project’s execution supports the performance of these companies in the market, while delays or challenges may have the opposite effect.
Comparing The Line with Global Smart City Projects
The Line is one of the largest urban and technological projects globally, notable for its bold design and investment scale. Compared to similar projects such as Masdar City in Abu Dhabi, Songdo in South Korea, and smart city initiatives in Singapore and China, The Line stands out in terms of length, targeted population density, and complete reliance on renewable energy. Nonetheless, all these projects share challenges related to funding, attracting residents, and achieving environmental and technological sustainability. Experiences from other smart cities have shown the importance of phased development, flexible design, and community engagement. NEOM is leveraging these lessons by reassessing and adapting The Line’s plans to real-world requirements, ensuring long-term project success.
Challenges and Criticisms Facing the Project
The Line faces several challenges, including its vast scale, the need for massive construction materials and heavy engineering, and cost control while adhering to the timeline. Environmental and social concerns have also emerged, particularly regarding the project’s impact on local communities and the protection of nature reserves in the NEOM area. In 2024-2025, reports surfaced about the redirection of The Line’s plans and the downsizing of its initial phase, along with concerns over the relocation of some local residents. NEOM management affirms its commitment to sustainability standards, natural diversity protection, and compensating affected communities. Financial and technical risks (rising costs, supply chain disruptions) remain present and require careful management and transparent communication with investors and the public.
Technologies and Innovation in The Line
The Line is built on the latest smart city technologies and innovation, with city management relying on artificial intelligence for operations, the Internet of Things for infrastructure, and robotics for construction and maintenance. The smart transport network includes ultra-fast underground trains, digital self-service kiosks, and advanced environmental monitoring systems. The project also integrates renewable energy solutions (solar, wind) with smart energy distribution networks. Global and local technology firms have been contracted to develop smart control systems, waste and water management, and digital health and remote education applications, making The Line a global laboratory for urban innovation.
Social and Cultural Impact of the Project
The Line aims to bring about a qualitative change in lifestyle within the Kingdom by providing an advanced urban environment focused on quality of life, health, and sustainability. The project is expected to attract local and international talent in technology and engineering and increase Saudi youth participation in future sectors. However, the challenge lies in engaging local communities and ensuring that indigenous populations benefit from development opportunities, especially amid concerns about relocation or drastic lifestyle changes. NEOM has announced compensation and social engagement programs to ensure alignment between development requirements and the preservation of the region’s cultural identity.
Recent Developments and Project Outlook
During 2024 and 2025, The Line Project underwent a review of its execution plans, with an announcement to reduce the first phase’s scope to 9 km instead of 170 km, aiming to achieve tangible results more quickly. NEOM’s partnerships with major global engineering and technology firms continued, introducing innovative technologies in smart construction and robotics. On the investment side, memoranda of understanding were signed with international investment funds, and partnerships with Aramco and SABIC were strengthened. The first phase is expected to open to residents before 2030, with the project expanding gradually through mid-century. The Saudi government reaffirms its commitment to the project as a tool for achieving Vision 2030 goals, focusing on attracting foreign investment and generating high-quality jobs.
Opportunities for Participation and Investment in The Line
Currently, individuals and investors cannot invest directly in The Line, as it is not a listed company on the Saudi financial market. Participation occurs through partnerships with subsidiaries or technological initiatives within NEOM, or via specialized government funds. NEOM has announced the launch of business incubator and innovation programs to attract tech startups, and greater participation opportunities will be available if assets or subsidiaries are offered for public subscription in the future. Investors interested in The Line can monitor listed companies with contracts or partnerships with NEOM, as their performance is influenced by the project’s progress and success.
Conclusion
The Line Project is one of the most ambitious initiatives in the history of Saudi Arabia, embodying a bold vision for the future of sustainable smart cities. The project presents an innovative model for urban planning, relying on modern technologies and renewable energy, and aims to strengthen the national economy by attracting large-scale investments and creating new job opportunities. Despite challenges related to project scale, financing, and timelines, the commitment of the Saudi government and the leadership of the Public Investment Fund provide a strong foundation for the project's continuation and development. From a financial market perspective, The Line acts as a catalyst for related sectors and boosts investor confidence in the Saudi economy. Nevertheless, individuals and interested investors should consult a licensed financial advisor before making any investment decisions. On the SIGMIX platform, you can follow analyses and the latest developments related to NEOM projects and associated companies for deeper insights into the Saudi market.
Frequently Asked Questions
The Line Project is a linear city approximately 170 km long within the NEOM area in northwest Saudi Arabia, announced in 2021 as a model for future smart cities. It features no cars or traditional streets and relies on a smart underground transport network. The city aims to accommodate about 9 million residents, with all services within a few minutes’ walk, and is fully powered by renewable energy and artificial intelligence for service management. The project seeks to drive sustainable urban transformation and foster technology and innovation in the Kingdom.
The Line Project is primarily financed by the Saudi Public Investment Fund (PIF), which provided the initial funding. Major Saudi companies such as Aramco and SABIC have also participated by acquiring stakes in NEOM, in addition to attracting investments from international funds and global companies. The funding is diversified, including strategic partnerships, bond issuances, and international loans as needed, aiming to ensure project sustainability and reduce reliance on direct government funding.
The total cost of The Line Project is estimated at around $500 billion (SAR 1.9 trillion). This covers smart infrastructure development, construction, renewable energy, and advanced technologies. About $3 billion has been allocated for the first phase (N1) spanning 9 km. As the project expands, spending is expected to rise, especially on construction materials, energy, artificial intelligence systems, and digital infrastructure.
NEOM aims to open the first phase (N1) of The Line, which covers about 9 km, and deliver the first residential units before 2030. The full 170 km project is expected to be completed by 2050, with execution progressing gradually based on resources and challenges. The timeline is flexible and may change depending on logistical and financial conditions, but the current focus is on achieving tangible milestones in the near term.
The Line Project has an indirect impact on the Saudi financial market by boosting investor confidence and stimulating sectors such as construction, renewable energy, and technology. Listed contracting and industrial resource companies may benefit from increased demand for their services, and future public offerings of NEOM-related assets or subsidiaries could attract new liquidity to the market. However, financial and execution risks remain and should be closely monitored.
The project faces major challenges, notably its scale and execution, the need for massive construction materials, and cost control. Environmental and social concerns have also emerged regarding the project’s impact on local communities and nature in the NEOM area. Managing financial risks, ensuring sustainable funding, and protecting the rights of indigenous populations are among the biggest challenges requiring balanced solutions and careful management.
The Line contributes to Vision 2030 by diversifying the national economy and attracting investments in non-oil sectors such as real estate, technology, and clean energy. The project creates thousands of high-quality jobs and enhances the Kingdom’s position as a global center for smart cities and innovation. It also supports local private sector growth and attracts foreign investment, contributing to sustainable economic development.
Direct investment in The Line is not currently available as it is not a listed company on the Saudi financial market. Participation occurs through partnerships with subsidiaries or business incubator programs within NEOM, or by investing in listed companies that have contracts or partnerships with the project. In the future, assets or subsidiaries may be offered for public subscription, providing indirect investment opportunities.
The Line stands out from other smart city projects due to its massive scale (170 km long), targeted population (9 million residents), and full reliance on renewable energy and artificial intelligence. While other projects like Masdar (UAE) and Songdo (Korea) share some technologies, The Line is more ambitious in engineering design and system integration. Targeting such a large population requires innovative solutions in construction, transportation, and resource management.
Saudi listed companies with contracts or partnerships related to The Line benefit the most, notably Saudi Aramco (2222), SABIC (2010), as well as major contracting and building materials firms. Technology, telecommunications, and renewable energy companies may also see growth as the project advances. Monitoring disclosures and developments of these companies provides an indicator of their benefit from the project.