Experts have claimed the £350bn project would destroy crucial historical and archaeological evidence.
Crown Prince Mohammed bin Salman has reportedly backed a new metropolis to be built that is 17 times the size of London at the Jabal al Lawz peak.
In a recent documentary called Finding the Mountain of Moses: The Real Mount Sinai in Saudi Arabia, experts discovered the spot near the Jordanian border was the most likely place where Moses received the Commandments.
Presenter Ryan Mauro warned of the plans: "If all of us don't take action, Saudi construction in the area may destroy key evidence and prevent excavation for the foreseeable future."
He further claimed he had uncovered evidence that proves that the blackened peak is where God descended on the mountain "as of fire".
The Book of Exodus states Moses led the Israelites to Mount Sinai, which was covered in fire, smoke and thunder.
While he ascended the mountain for 40 days and nights, scriptures says the Israelites demanded that Aaron make them "gods" which led to the construction of the golden calf.
Mauro claimed in the documentary that a plinth close to the mountain is the spot where a golden calf was worshipped - the stone construction has bulls carved into its base.
Historians are divided over the location of Mt Sinai with many believing the most likely location lies in Egypt.
The Saudi megacity, called Neom is expected to cover 10,230-square-miles and is planned to run on 100 per cent renewable energy.
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