Neom’s acting head reviews Saudi Mega-Project after mishap

Unlock Free

Roula Khalaf, publisher of the FT, selects her favorite stories in this weekly newsletter.

The acting CEO of Saudi Arabia neo has launched in recent weeks a “comprehensive review” of the scope and priority of projects within the flagship regime of the Mohammed bin Crown Prince of the Crown, according to two people who know the subject.

Aiman ​​al-Mudaifer was appointed CEO acting in November after the Nadhmi al-Nasr’s Brusca Departurewho directed the $ 500 million mega project for six years, but faced a growing scrutiny about his management style and his pressure on results.

One of the people who knew the question said that the main neom projects were “generally passing”, but added that some were “reviewed in terms of their reach”.

Some tourist developments in the Red Sea, where work had not yet begun, added the person.

The review “is taking place in a limited resource environment,” the person said. “Some things were done to look again.”

The “Gigaproject”, which officials describe as the largest construction site in the world, covers a large desert area and mountains along the Red Sea, which extends to the borders of Jordan and Egypt.

It includes multiple developments, including a futuristic linear city called Line, which is assumed that 170 km should be operated; A coastal logistics and industrial area known as Oxagon; and a ski resort called Trojena that will be welcomed at the Winter Asian Games by 2029.

NASR, a former executive of the Saudi Aramco State Oil Company, joined Neom after establishing a reputation to monitor major state infrastructure projects.

But Neom has fought with budget projects and deadlines, and has elaborated skepticism since and outside the kingdom since its launch in 2017. Saudi officials against skeptics said that Neom is a project of 50 years or even 100 years.

The review occurs when Riyadh recalibates its expenditure priorities after almost a decade of frantic activities as oil prices go down, and the Government seeks to manage the large scale of projects announced as part of Prince Mohammed’s 2030 Vision program. Kingdom.

As a result, state -related entities are forced to tighten belts, and some projects are being reduced, and some projects are being reduced or in phase for a longer period of time.

A second person said that the review was being done to “decide what to double”.

“It’s just a good general government. It is related to the recalibration (expense),” the person said. “There is enormous pressure on neom to deliver -because it is considered totemic; it is inextricably linked to 2030 vision.”

“It’s an unprecedented project, not just for Saudi Arabia.”

Prince Mohammed is the practical president of Neom, who is the central piece of his highly ambitious economic transformation program to reduce the dependence of the kingdom of oil revenue. Neom is owned by the Public Investment Fund, the $ 940 million sovereignist wealth fund.

When he announced the appointment of Mudaifer, Neom said that the project would enter “a new delivery phase”, adding that the new leadership would guarantee “operational continuity, agility and efficiency to combine the general vision and goals of the project”.

Mudaifer, who previously directed the PIF local real estate division, is expected to be appointed permanent CEO, according to one of the people.

The PIF is overseeing all the main development projects throughout the kingdom and is under increasing pressure on results on the ground, almost a decade after Prince Mohammed presented the 2030 vision.

Neom did not respond to a comment request.