Saudi Arabia says it will move away from fossil fuels and diversify its economy.
The project - an entire city with no cars, roads or carbon emissions - is Crown Prince Mohammed bin Salman's latest vision for a future Saudi Arabian city.
A news release described the city as a walk-able "belt of hyperconnected future communities, without cars and roads and built around nature." Saudi Arabia plans it to have a maximum of 1 million residents. Its construction is expected to generate 380,000 jobs by 2030.
The crown prince said the project will likely cost between $100 billion and $200 billion.
Engineers said a typical commute using "ultrahigh-speed transit and autonomous mobility solutions" would take no longer than 20 minutes. Prince Mohammed said the city would be a "revolution for mankind" and the way we view and build future cities.
Neom is the centerpiece of the crown prince's economic diversification. It was announced in 2017 and will cover an area of more than 10,000 square miles of a remote area in the country's northeast. The project's official website described the project as a "bold and audacious dream" and a location for new technologies and businesses.
"The backbone of investment in The Line will come from the $500 billion support to Neom by the Saudi government, PIF and local and global investors over 10 years," Prince Mohammed said.
Saudi Arabia generates more than half of its revenue from oil. Prince Mohammed envisions a future for the kingdom independent of oil and toward high-tech industries.
Neom has been subject to skepticism and political doubts since it was announced. Critics say the project is unrealistic because of cost.