Saudi Arabia has shelved plans for the $2.5 billion NEOM Stadium, one of 15 venues for the 2034 FIFA World Cup, according to two sources, as The Line development around it is scaled back. Other stadiums are still being built, but the move reflects a wider pullback from giga-projects as the Iran war squeezes the kingdom’s finances.

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When Saudi Arabia pitched its 2034 World Cup, one venue stood out from the rest. The NEOM Stadium was drawn as an elevated arena set inside The Line, a 100-mile ribbon of steel and glass meant to run across the desert in the kingdom’s northwest, with seats for 46,000 fans and a projected cost of $2.5 billion.

According to two sources familiar with the matter, the stadium is now being shelved after delays and downsizing at the development site. NEOM and the Saudi government media office did not reply to requests for comment, and the Ministry of Sports referred questions to the World Cup 2034 Hosting Higher Authority, which said “substantial delivery” of construction milestones was under way but did not address the NEOM Stadium or its cost.

What Happened to The Line

NEOM was unveiled about a decade ago as the centerpiece of Vision 2030, Crown Prince Mohammed bin Salman’s plan to diversify the Saudi economy away from oil. The Line was its most famous piece, and when the crown prince unveiled its design in 2022 it was to stand 500 meters tall and 200 meters wide and eventually house 9 million people. Bloomberg reported in 2024 that the plan for 2030 had already been cut to about 2.4 kilometers. In April, Yasir Al-Rumayyan, Governor of the Public Investment Fund that owns NEOM, said The Line was no longer a priority and was not vital before 2030, the original target for its first phase, though he denied that any projects had been cancelled.

MEED Projects, a Dubai-based platform that tracks construction tenders in the region, lists the NEOM Stadium as “on hold” with no completion date, while the rest of the venues are at different stages and due to be finished between 2026 and 2033.

A bigger Tournament than any Single Host has Staged

The 2034 tournament will be the first time one country hosts the expanded 48-team format, which made its debut this summer across the United States, Canada, and Mexico, largely in stadiums that already existed. Saudi Arabia, confirmed as host by FIFA in December 2024, is building or renovating 15 venues in five cities, along with dozens of training sites, in a program MEED values at $22.7 billion. Human rights groups criticized FIFA’s decision to award Saudi Arabia the tournament over the treatment of migrant workers, who are expected to build most of those venues.

A third source stated that spreading those stadiums across the country makes them harder to deliver and some of the developments meant to host them are themselves being delayed or shrunk. In January, it was reported that Saudi Arabia had suspended work on The Mukaab, the giant cube-shaped tower at the center of Riyadh’s New Murabba district, which is also earmarked for a World Cup venue.

War and Oil put Pressure on the Budget

The Iran war has disrupted energy shipments and damaged critical infrastructure in the Gulf, and Saudi Arabia has faced attacks from the Iran-backed Houthis. Last week the Ministry of Finance said it now expects a wider budget deficit than planned this year and a 3.6% contraction in real GDP after a fall in oil activity.

The PIF had already been moving away from costly giga-projects toward investments that pay back sooner, a shift Saudi officials set out in the fund’s 2026 to 2030 strategy. Sport has been central to the fund’s efforts to raise the kingdom’s profile, from its takeover of the English football club Newcastle United in 2021 to its backing of the LIV Golf tour, and the World Cup is the biggest prize of all. Dropping one expensive venue while keeping the tournament on track fits that change in priorities.

The Rest of the World Cup Build to Continue

The Aramco Stadium in Al Khobar, on the east coast is due to be finished by the end of this year and will host its first match in January, with tickets already on sale, and work on the other planned stadiums is continuing, a fourth source said.

The Hosting Authority’s statement did not say what would happen to the matches that had been planned for NEOM.

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