One project, known as ‘The Line’, involved plans to build two rows of skyscraper walls standing at around 500 metres, with a combined width of just 200 metres, and extending for 170km (105 miles).
But now the project will stop at just 2.4km.
Dr Frederic Schneider, an independent consultant on post-oil economic transitions in the Gulf region, told The Sun: “When Vision 2030 was first announced there was a lot of talk about that it was hugely ambitious.
“Many people from the start said, ‘okay, this is not only ambitious, that’s almost impossible’.
“The Line, for example, was budgeted for 500billion. Estimates go up fourfold that cost if you are realistic. So that would be 2trillion for the line alone.”
The project has been impacted after the country slashed its oil production. On top of this, Saudi Arabia has forecast a deficit of $21billion (£16billion) for this year.
The other developments included in the plans include an entertainment city in the capital Riyadh and multiple luxury island resorts on the Red Sea.
The project has not only been hit with economic issues. The construction work has led to allegations of human rights abuses.
Tribes have been removed from their homelands to make way for the developments while others have been imprisoned or executed.
One campaigner claimed: “Neom is built on Saudi blood”.
Jeed Basyouni, Middle East director of the human rights organisation Reprieve, told DW: “We have seen, time and again, that anyone who disagrees with the crown prince, or gets in his way, risks being sentenced to jail or to death.”
In May, the BBC reported that Saudi authorities have permitted the use of lethal force to clear the land being used for the city.
Col Rabih Alenezi, an ex-intelligence officer in Saudi Arabia, says he was ordered to evict villagers and that one was shot and killed for resisting.
The BBC was not able to independently verify Col Alenezi’s comments about lethal force.
However, a source familiar with Saudi intelligence told the outlet that Col Alenezi’s account matched up with what they knew about how Saudi authorities were handling the situation.
The Saudi government and Neom management refused to comment in response to the BBC‘s story.
Col Alenezi’ was ordered to clear al-Khuraybah, 4.5km south of The Line. He alleged that the order stated that the tribe was made up of “many rebels” and “whoever continues to resist [eviction] should be killed, so it licensed the use of lethal force against whoever stayed in their home.”
Saudi Arabia has also faced allegations that a large number of the migrant workers carrying out the construction have gone missing.
Saudi Finance Minister Mohammed Al-Jadaan said in April: “We will change course, we will extend some of the projects, we will downscale some projects, we will accelerate some projects.”