Saudi Arabia has started construction on the "Hidden Marina", a key component of its $1.22 trillion NEOM 'The Line' desert megaproject, after the first phase was unveiled at the Public Investment Fund (PIF) Private Sector Forum in Riyadh during Ramadan, Nemmna reported on March 31.

The 350,000-square metre development represents the initial phase of The Line, a linear smart city being built in the kingdom's Tabuk Province, which sits at the edge of the Red Sea, close to Jordan, Egypt and Israel.

"With a built-up area surpassing 21mn square metres, the scale of Hidden Marina is unprecedented, dwarfing global benchmarks such as the Burj Khalifa, which has a built-up area of just 350,000 square metres," said Denis Hickey, NEOM's chief development officer, the construction blog noted.

The announcement comes amid rumours about scaled-back developments, including skyrocketing bills, with the entirety of NEOM now estimated to set back the oil-rich Kingdom more than $8.8 trillion, according to the WSJ.

The Hidden Marina will stretch 2.5 kilometres and rise 500 metres in height, consisting of three connected modules designed to house more than 200,000 residents in 80,000 homes, and is also expected to grow in cost as deadlines continue to be missed in many cases.

"The project, a bold step in redefining urban living, will introduce a fully integrated, vertical city built in modular 800-metre sections," Hickey said.

The development will include 9,000 hotel rooms, retail spaces and essential services including fire stations, schools and police facilities. It will also feature a stadium for the 2034 World Cup.

More than 140,000 workers from 100 countries are involved in the project’s construction, with 40% comprising Saudi talent. The project has received $140bn in infrastructure investment for energy, water, transport and communications systems.

"We have already deployed significant resources to lay the groundwork for this ambitious urban revolution," Hickey added.

NEOM's investment structure operates through two vehicles: the NEOM Investment Fund for sectoral investments and the NEOM Investment Office for real estate partnerships.

The Line development began construction in 2022 and is scheduled for completion by 2030, according to the report, but doubts remain on the long-term ability to meet those initial deadlines.

The staggering $8.8 trillion price tag has ballooned from the previous $500bn initial estimates for the project several years ago, which has suffered several setbacks.

Authorities have reluctantly admitted that the initial multiple plans for the project that were first announced in 2015 onwards have been open to several changes. Batting back reports of the project shutting down, NEOM has said repeatedly that the projects are contining to move ahead.