A mysterious luxury palace complex has been discovered under construction in the heart of Saudi Arabia's ambitious NEOM project, even as the futuristic megacity faces severe delays and spiraling costs. Satellite imagery from Maxar Technologies revealed the secret development in January 2025, raising serious questions about the project's priorities and the allocation of public resources. The discovery comes at a time when NEOM, originally valued at $2 trillion, is struggling to meet its ambitious timeline and technological goals.
The palace complex, featuring multiple swimming pools, private beaches, a golf course, and buildings linked to Crown Prince Mohammed bin Salman, appears to be progressing rapidly despite widespread delays affecting other key components of the NEOM project. The Crown Prince, who also chairs NEOM's board of directors, is at the center of this controversial revelation. Critics are questioning why the royal palace construction is moving forward swiftly while crucial projects like The Line, a planned 110-mile vertical city, remain stalled.
The Line was originally scheduled to open in 2034 and should already be in active construction phases. However, satellite images show no significant progress on this centerpiece of the NEOM vision. This stark contrast between the rapid palace development and the stagnation of public infrastructure projects has raised concerns about whether public resources are being diverted from NEOM's original technological and environmental objectives.
Financial transparency issues have further complicated the project's outlook. An internal NEOM audit has exposed financial manipulations designed to downplay the project's escalating costs. The amount needed to complete NEOM by 2080 is now estimated at a staggering $8.8 trillion, far exceeding Saudi Arabia's entire national budget. This massive cost overrun has been exacerbated by a lack of transparency, with financial teams reportedly encouraged to inflate revenue projections to present a more promising profitability picture to potential investors.
These questionable financial practices led to the departure of Nadhmi al-Nasr, NEOM's former CEO, in 2024. Several project managers who had contributed to inflated expectations and financial projections were also removed from their positions. McKinsey & Company, serving as the planner and validator of NEOM's financial models, now faces growing criticism for its role in the project's financial mismanagement. The CEO replacement has raised even more questions about NEOM's future direction and leadership stability.
NEOM originally promised revolutionary features including hydrogen power plants, flying taxis, and artificial intelligence-driven governance, all aligned with Saudi Arabia's Vision 2030 initiative. The project was designed to break the kingdom's dependence on oil and establish it as a global innovation hub. However, current reality shows NEOM as little more than a vast construction site where a royal palace is taking shape while promised technological marvels remain nowhere to be seen.
Satellite imagery fails to show significant advances in the futuristic infrastructure that was supposed to define NEOM. The project appears far less ambitious in execution than in its promotional materials and public presentations. While NEOM representatives continue to assure stakeholders that everything is on track, there is still no concrete evidence that the project's technology and sustainability ambitions will be realized by the 2030 target date.
The revelation of the secret palace construction has intensified concerns about NEOM's shifted priorities. Critics argue that the palace symbolizes deeper problems within the project's management and vision. They contend that what was supposed to be a futuristic city is actually becoming a fortress clinging to traditional power structures and luxury rather than innovation and sustainability.
Despite Saudi Arabia's continued promotion of NEOM as a transformative project, both investors and the public appear increasingly reluctant to embrace this vision. The construction of the luxury palace while key infrastructure projects languish has become a symbol of misplaced priorities. Some critics argue that the supposedly futuristic city is actually rooted in outdated concepts of power and privilege.
The project's credibility is further questioned by ambitious claims such as building the world's largest hydrogen city with an annual production capacity of 400,000 tons. With current progress showing little evidence of such technological capabilities, these promises appear increasingly hollow to observers and potential investors.
NEOM now stands at a critical crossroads. Recent developments have highlighted the growing tensions between the project's grandiose ambitions and the harsh realities of economic constraints and political priorities. As the world watches with growing skepticism, the fundamental question remains whether NEOM can reconcile its futuristic aspirations with current challenges, or whether it will ultimately collapse under the weight of its own impossible promises and financial burdens.
