Saudi Arabia’s megacity Neom CEO resigns amid delays and overruns

The CEO of Saudi Arabia’s Neom project, Nadhmi al-Nasr, has stepped down after six years, marking a major shake-up in the world’s largest construction endeavor, according to the Wall Street Journal.

Neom, launched in 2017 with a $500 billion budget, is a key part of Crown Prince Mohammed bin Salman’s (MBS) vision to create a futuristic city and diversify the economy beyond oil.

The project includes “The Line,” a 170-km linear city, Trojena, a ski resort hosting the 2029 Asian Winter Games and Sindalah Island, a luxury tourist destination. However, delays, budget overruns and high executive turnover have hindered progress.

Estimated costs for “The Line” alone exceed $2 trillion, far above initial projections.

Many among the top brass, including a Spanish executive and an Australian media executive, have left the project in the past few months.

Aiman al-Mudaifer from the Public Investment Fund (PIF) has been named acting CEO.

The PIF, managing over $1 trillion in assets, now aims for tighter control amid growing financial constraints.

Despite MBS’s ambitious goals to diversify Saudi Arabia’s economy, the lack of foreign investment and significant executive departures suggest a possible shift in focus to other national investments.