The 2026-30 budget for Saudi Arabia's Neom city megaproject includes 60 billion riyals ($16 billion) in penalty payments to terminate long-term contractor agreements, Semafor reported on June 7. The total cost of these penalty fees may increase following further negotiations with contractors.

Neom is a $1.5 trillion megaproject that is part of Saudi Arabia's broader economic diversification and modernization plans. The project included The Line, an ambitious, mirrored design initially planned to house nearly 10 million people upon its completion, though it has since faced numerous cutbacks. Additionally, Neom encompasses a port, an industrial city and a luxury resort island, which closed shortly after opening.