Saudi Arabia shelves $2.5bn Neom stadium planned for 2034 World Cup, report says

Saudi Arabia has quietly shelved plans for a $2.5bn stadium planned as a venue for the 2034 Fifa World Cup, as delays to the country's flagship Neom development cast doubt over some of the kingdom's most ambitious projects.

Reuters reported that the $2.5bn stadium construction was suspended, according to MEED Projects, a construction intelligence platform, which classified the project as “on hold” with no end date.

The stadium was set to be one of the most futuristic sports venues in Saudi Arabia’s World Cup plans, located 350 metres above ground level within the 160 km-long Neom development.

In 2024, Saudi Arabia unveiled its 2034 World Cup venue plans, with the Neom stadium among 15 proposed venues across five cities.

MEED said at the time that the stadium would seat 46,000 spectators and would be built within The Line.

Fifa chose Saudi Arabia to host the 2034 World Cup in December 2024. The tournament, which will feature 48 teams, will be the first of its kind to be played out in one country.

The latest developments cast a shadow over The Line, the new masterplan at the heart of Crown Prince Mohammed bin Salman’s Vision 2030 economic transformation plan, which has seen the kingdom embark on an ambitious agenda of futuristic developments.

Yasir Al-Rumayyan, governor of the Public Investment Fund (PIF), which owns Neom, said in April that The Line was no longer a priority and not of utmost importance before 2030, although he stopped short of confirming that any projects had been cancelled.

Saudi Arabia's World Cup 2034 Hosting Higher Authority said that “substantial delivery” of construction projects for the tournament was already underway, while providing images of other stadium projects, the report said. 

The development comes months after the construction of The Mukaab, a colossal cube-shaped skyscraper planned as the centrepiece of Riyadh’s New Murabba development, had been suspended.

The PIF has reportedly been shifting away from some expensive giga-projects towards investments expected to generate financial returns more quickly.

The Neom decision comes as Saudi Arabia faces mounting economic and security pressures.

The kingdom's energy exports have been disrupted by the US-Israeli war on Iran, while Yemen's Houthi rebels have been targeting Saudi infrastructure.

On Saturday, the Houthis claimed responsibility for an attack near an Aramco facility in Riyadh. A witness reported seeing smoke and fire, although Saudi authorities and Aramco had not immediately confirmed the incident.

Following a decline in oil activity, Saudi Arabia’s finance ministry has estimated a budget deficit this year and a 3.6 percent drop in real GDP.

For Mohammed bin Salman, the 2034 Fifa World Cup is a key pillar of his economic and global influence-building vision.

Fifa has declared Saudi’s World Cup proposal “absolutely incredible”.