Several companies have announced the cancellation of contracts linked to Saudi Arabia’s flagship Neom development, raising fresh questions about the pace of the kingdom’s ambitious building program. Reports Zakon.kz.
The canceled deals involve two of Neom’s best-known projects: Trojena, a planned mountain ski resort in Tabuk, and The Line, the futuristic 170-kilometer linear city. Steel producer Eversendai said its contract to supply and install steel structures for Trojena had been terminated.
Italian builder Webuild also reported that its contract to construct three dams for the resort had been canceled. Those dams were expected to help create a large freshwater lake inside the Trojena area.
At the same time, Hyundai Engineering and Construction said a joint contract with Samsung C&T and Archirodon to build a tunnel for The Line had been annulled. The decisions come as signs grow that work on Neom is moving more slowly than originally expected.
The Line has already undergone a major rethink. Earlier plans envisioned 1.5 million residents by 2030, but that target was reduced in 2024 to 300,000. The latest contract cancellations suggest that Neom’s landmark projects are facing serious implementation and planning challenges.
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