NEOM Airlines’ launch may be delayed as Saudi Arabia plans to allocate 20pc less than its targeted budget to the urban development start-up at Neom Bay.
A government committee led by Mohammed Bin Salman is conducting a review of mega projects, including the Neom Bay desert development and the Qiddiya Coast tourism project, which are facing potential cutbacks.
Lower oil prices, weak foreign investment, and expected budget deficits are prompting Saudi Arabia to reconsider its priorities under the Vision 2030 strategy to reshape its economy.
NEOM Airlines, planned as Saudi Arabia’s third state-owned airline, aimed to start operations in late 2024 or early 2025 to serve the Neom Bay development without directly competing with Saudia and Riyadh Air.
