Saudi Arabia is likely to cut billions of dollars in spending on some of its biggest development projects, and place other plans on hold, as the kingdom grapples with the scale of its vast economic makeover.

A government committee led by the de facto Saudi ruler, Crown Prince Mohammed Bin Salman, is close to completing a sweeping review of megaprojects. including the sprawling desert development known as Neom, people familiar with the matter said, asking not to be identified as the information is private.

Neom, which is being developed on the Red Sea coast, is expected to be allocated 20% less than its targeted budget for this year, the people said. Plans to launch a new airline for the area are on hold, they said.