Saudi Arabia’s futuristic NEOM project faces fresh uncertainty after the sudden cancellation of a multi-billion-dollar construction contract tied to the Trojena mountain destination and its artificial lake development.
Saudi Arabia’s ambitious NEOM mega-city project has suffered a major setback after a $4.7 billion construction contract linked to the Trojena mountain resort was abruptly terminated, raising new concerns about the future pace and priorities of the kingdom’s Vision 2030 agenda.
Italian construction giant NEOM confirmed that NEOM management canceled its agreement with Webuild for the construction of a large artificial freshwater lake, multiple dams, and advanced infrastructure inside the futuristic Trojena development.
The project, launched in January 2024, aimed to transform part of Saudi Arabia’s desert mountains into a year-round tourism destination. Central to the plan was a 2.8-kilometer-long artificial lake surrounded by luxury developments and a cutting-edge architectural structure known as “The Bow.”
According to the company, the contract cancellation officially took effect on March 29, 2026. By the time construction was halted, nearly 30 percent of the work had already been completed, including major excavation operations and concrete installations.
Webuild stated that approximately €2.8 billion worth of work was still pending. Under the contract terms, NEOM authorities are expected to bear the costs associated with halting construction activities and removing equipment and machinery from the site.
Industry analysts believe the decision reflects a broader reassessment of Saudi Arabia’s mega-project spending strategy under Vision 2030. The kingdom is currently balancing multiple high-cost international commitments, including preparations for Expo 2030 and the 2034 FIFA World Cup.
The cancellation has also intensified speculation about the future timeline of Trojena, which is scheduled to host the 2029 Asian Winter Games — a first-of-its-kind winter sports event planned in a desert region.
While Saudi officials have not announced any changes to the event schedule, the termination of such a major construction agreement has sparked questions about whether parts of the Trojena vision could face redesigns, delays, or budget adjustments in the coming years.
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