Summary
Construction on Saudi Arabia's NEOM megaproject is facing difficulties due to contract terminations amid Middle Eastern geopolitical issues. Key contracts for steel and dam construction at the Trojena region of NEOM were canceled, affecting the project's progress. Despite setbacks, some work continues on the project.
Key Facts
- NEOM is being built on Saudi Arabia's Red Sea coast and is known as the world's largest megaproject.
- Eversendai Corporation’s contract to supply steel for Trojena Ski Village was terminated.
- Webuild's contract for constructing dams and a freshwater lake at Trojena was also canceled.
- Webuild had completed about 30% of its project work before the termination.
- NEOM is part of Saudi Arabia’s Vision 2030 to diversify its economy beyond oil.
- The project has faced multiple challenges including cost overruns and forced displacement criticisms.
- Despite current contract terminations, some construction continues at Trojena.
